Today's Tech Winners and Losers
Shares of DTS (DTSI) were among technology's winners Tuesday, climbing 12% after the digital-audio technology company posted higher-than-expected first-quarter results.
The company earned $7 million, or 38 cents a share, on revenue of $28.7 million. Results included stock-based compensation costs of $619,000, or 2 cents a share. Analysts polled by Thomson First Call expected earnings of 32 cents a share and revenue of $25.1 million. During the year-earlier quarter, the company earned $3.6 million, or 19 cents a share, on revenue of $22.1 million. Results during the year-earlier quarter included a charge of $2.6 million, or 9 cents a share. "We are pleased with our results across the business in the first quarter, where we had good financial performance and continued to position ourselves for stronger growth in the coming years," DTS said. Shares were trading up $2.33 to $21.85.
Glenayre Technologies (GEMS) plummeted 33% after the company posted a first-quarter loss and said it was recently notified that it wouldn't be included in Sprint Nextel's (S) voice-mail vendor selection process. The provider of messaging systems posted a loss from continuing operations of $6.7 million, or 10 cents a share, on revenue of $86.4 million. One analyst had a forecast for a loss of 3 cents a share and revenue of $82.4 million. A year earlier, the company earned $1.8 million, or 3 cents a share, on revenue of $17.9 million.
As a result of the Sprint Nextel decision and soft domestic market, Glenayre now expects its 2006 messaging revenue to be equal to or slightly below last year's results. "Given our outlook for the domestic market and Sprint Nextel's vendor decision, we are working to adjust our expense structure to bring it in line with our revised expectations for the year," the company said. Shares were trading down $1.90 to $3.93.
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