Tech Stocks in Motion
Progress reported fiscal fourth-quarter earnings of $14 million, or 33 cents a share, up from $15.9 million, or 28 cents a share, a year earlier. Excluding certain items, the software company earned $16.3 million, or 38 cents a share, on an adjusted basis, beating analysts' estimate by a penny. Revenue rose to $108 million from $96.2 million a year earlier, topping Wall Street's forecast of $105.8 million. But for the first quarter, Progress sees adjusted earnings of 29 cents to 31 cents a share, below analysts' expectation of 32 cents. The company expects revenue of $103 million to $105 million, compared with Wall Street's target of $105 million. For the full year, Progress sees adjusted earnings of $1.45 to $1.51 a share, and revenue of $435 million to $445 million. Analysts project earnings of $1.51 a share and revenue of $444 million.
Separately, Progress agreed to pay $6.20 a share to buy Neon, a maker of mainframe integration products. The price represents a 43% premium to Neon's Monday closing price of $4.35. The deal is valued at $68 million. Shares of Progress Software were trading down $3.30 to $27.89, while Neon shares jumped $1.78, or 41%, to $6.13.
Amkor Technology (AMKR) increased its fourth-quarter sales and margin forecasts, citing stronger-than-expected demand and improved factory utilization. The provider of semiconductor assembly and test services now expects revenue to rise 13% to 15% from the third quarter, compared with its earlier guidance for 6% to 8% sequential growth. Based on the third-quarter top line of $549.6 million, the new forecast suggests revenue of $621 million to $632 million. Analysts polled by Thomson First Call have an average estimate for revenue of $589.8 million. Amkor improved its gross margin projection to 22% to 23% from 19% to 20%. The company's shares were up 62 cents, or 11%, to $6.23.
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