Wednesday's Tech Winners and Losers
Shares of Catapult Communications (CATT) were among technology's losers Wednesday, sliding 9% after the maker of digital telecom test systems cut its third-quarter revenue outlook.
The company now sees revenue of $10.7 million to $11.7 million for the quarter ending June 30, down from an earlier view of $12.8 million. Analysts polled by Thomson First Call project revenue of $12.8 million. "Order input for the quarter is falling short of our expectations, which indicates that revenues will not recover from second quarter levels to the extent we originally anticipated," Catapult said in a press release. Shares recently were trading down $1.15 to $12.
Andrew (ANDW) rose 5% after the telecom supplier agreed to be acquired by ADC Telecommunications (ADCT) for about $2 billion in stock. Andrew shareholders will receive 0.57 ADC shares for each Andrew share they hold, which would value Andrew at $12.76 a share based on Tuesday's closing prices. That price represents 30% premium over Andrew's closing price Tuesday of $9.78. The deal is expected to close within four to six months. Shares of Andrew were trading up 52 cents to $10.30, while shares of ADC tumbled $4.22, or 19%, to $18.16.
Shares of Versant (VSNT) rose 5% after the data management company said it swung to a second-quarter profit and raised its fiscal 2006 guidance. For the quarter ended April 30, the company earned $1.2 million, or 32 cents a share, on revenue of $3.8 million. A year earlier, the company posted a loss of $1.1 million, or 30 cents a share, on revenue of $3.2 million.Looking ahead, Versant now sees fiscal 2006 earnings of $2.6 million to $2.9 million, up from an earlier view of $1.6 million to $2 million. Shares were trading up 36 cents to $7.36. McData (MCDTA) fell 3% after the storage networking company posted weaker-than-expected first-quarter revenue. The company recorded a loss of $9.5 million, or 6 cents a share, on revenue of $168.3 million. Excluding items, McData reported a profit of $6.1 million, or 4 cents a share. Analysts expected earnings of 4 cents a share on revenue of $170.4 million. During the year-earlier quarter, the company earned $3 million, or 3 cents a share, on revenue of $98.9 million. Shares were down 10 cents to $3.69.
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