Today's Tech Winners and Losers
Shares of Sohu.com (SOHU) were among technology's winners Tuesday, jumping 15% after the Chinese Internet portal company posted better-than-expected fourth-quarter results.
The company earned $8.9 million, or 23 cents a share, on sales of $30.5 million. Analysts surveyed by Thomson First Call expected earnings of 21 cents a share and sales of $29.3 million. During the year-earlier period, the company earned $6.5 million, or 17 cents a share, on sales of $24.1 million.
Looking ahead, Sohu sees first-quarter earnings of 14 cents to 16 cents a share, including stock-based compensation costs and a tax expense of 5 cents to 6 cents a share. Analysts project earnings of 19 cents a share. The company projects sales of $28 million to $30 million, in line with Wall Street's projection of $29.2 million. Shares were trading up $2.86 to $22.16.
Raindance Communications (RNDC) jumped 30% after the Internet services company agreed to be acquired by West Corp. (WSTC) for about $110 million, or $2.70 a share in cash. The price represents a 33% premium over Raindance's closing price of $2.03 on Monday. The acquisition, projected to close by the end of the second quarter, is expected to be slightly accretive to West's 2006 earnings. Shares of Raindance were trading up 61 cents to $2.64, while shares of West were trading up $1.37, or 3.3%, to $42.76.Conexant Systems (CNXT) shares tumbled 20% after the company said a New Jersey jury ruled against it in a patent infringement case vs. Texas Instruments (TXN) and Stanford University. The jury found that Conexant's GlobespanVirata unit willfully infringed three patents related to asymmetric digital subscriber line technology. Conexant said the jury awarded $112 million in damages to Texas Instruments, which the judge has the authority to enhance. No payments are required to be made until after a second phase of the trial, scheduled for October. Conexant shares were down 68 cents to $2.68. Texas Instruments was down 21 cents to $30.33.
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