Tuesday's Tech Winners & Losers
Shares of Take-Two Interactive (TTWO) were among technology's losers Tuesday, plunging 18% after the software company received grand jury subpoenas from the District Attorney of New York County.
The subpoenas, which the company received June 19, seek documents covering periods as far back as October 2001. Take-Two said the documentation relates to a host of items, including the knowledge of the company's officers and directors regarding the creation of hidden scenes in the company's Grand Theft Auto: San Andreas, the submission of the game to the Entertainment Software Rating Board for a rating and the company's disclosures about the hidden scenes.
The subpoenas also seek information pertaining to disclosures and presentations by the company of certain events, including acquisitions, partnering arrangements and earnings results, Take-Two said. What's more, the district attorney also wants information related to Take-Two's invoices from, payments to, and termination of its former auditor, PricewaterhouseCoopers.
Take-Two said it's not been made aware of whether it or any specific individual is a target of the investigation. Meanwhile, the company said it's cooperating and providing all documentation requested. Shares were recently trading down $2.28 to $10.59.Marvell Technology Group (MRVL) slumped 14% after the company agreed to buy Intel's (INTC) communications and application processor business for $600 million in cash. Intel has an option to receive $100 million of its compensation in Marvell stock. "The planned sale will give Marvell a strong presence in the growing market segment for processors used in smart handheld devices," Marvell said in a press release. The acquisition is expected to close in four to five months. Shares of Marvell were trading down $7.28 to $44.62, while shares of Intel fell 4 cents to $18.24. InFocus (INFS) slid 17% after the maker of digital projectors warned that second-quarter revenue would fall short of expectations. The company said revenue would be less than the $112 million it reported during the first quarter. Analysts polled by Thomson First Call project second-quarter revenue of $122.1 million.
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