Shares of M-Systems (FLSH) were among technology's winners Wednesday, rising 8% after the flash memory company said its first-quarter revenue would be higher than its original guidance.
The company said revenue will exceed the $140 million to $170 million range it previously forecast. Analysts polled by Thomson First Call project revenue of $156.9 million. The company expects earnings, before stock-based compensation costs, to be more than 16 cents a share. Analysts project earnings of 21 cents a share. M-Systems plans to issue its first-quarter results on April 26. Shares were trading up $2.21 to $28.40.
Shares of Richardson Electronics (RELL - Get Report) plunged 19% after the company said it would restate its financial results because of accounting errors at one of its Italian subsidiaries. The company also announced the resignation of Arthur Buckland, the company's president and chief operating officer. Buckland's resignation comes less than three months after he took the job.
Richardson Electronics said it doesn't yet know which financial reporting periods will be affected by the mistakes, but it expects the errors will reduce shareholders' equity by about $3 million to $4 million. Additionally, the company is evaluating the adequacy of its accounting for income taxes in certain foreign jurisdictions, it said. As a result of the accounting errors, the company said it won't be able to file its 10-Q report for the period ended March 4 with the Securities and Exchange Commission by the filing deadline.As for Buckland's resignation, which is effective immediately, the company said he is leaving the company to pursue personal interests. Chairman and Chief Executive Edward Richardson will assume Buckland's responsibilities until a permanent replacement is found. The company's shares were down $1.79 to $7.44. SupportSoft (SPRT - Get Report) fell 8% after the software company warned that first-quarter revenue would be well below Wall Street's expectation. The company sees revenue of about $8 million, while analysts had forecast revenue of $14.6 million. "SupportSoft believes its business was significantly affected by a few sizeble license transactions that were not completed by quarter end and by the recently announced transition in the company's leadership, among other factors," the company said. The company plans to post earnings on April 27. Shares were trading down 36 cents to $3.93.