Wednesday's Tech Winners & Losers
Shares of Novell (NOVL) were among technology's losers Wednesday, falling 6% after the business-software company posted mixed preliminary fourth-quarter results and gave a lower-than-expected revenue forecast for fiscal 2007.
The company, which won't issue final results until it completes an investigation into its historical stock-option practices, said it earned $23.7 million, or 6 cents a share, for the quarter ended Oct. 31. Excluding certain items, the company earned $20 million, or 5 cents a share, a penny above Thomson First Call's average analyst estimate. Novell reported revenue of $244.9 million, below Wall Street's forecast of $251.4 million. In the year-earlier period, Novel recorded adjusted earnings of $32.2 million, or 7 cents a share, on revenue of $287.6 million.
Looking ahead, Novell forecast fiscal 2007 revenue of $945 million to $975 million, below analysts' expectation of $1 billion. The company predicts adjusted operating income between break-even and $10 million, excluding stock-based compensation costs. Shares were trading down 39 cents to $5.94.
Yahoo! (YHOO) shares slid 2% following news that the Internet portal is shuffling its management ranks. Chief Financial Officer Susan Decker will head the company's advertising and publishing segment. In turn, Yahoo! plans to hire a new financial chief. In addition, Chief Operating Officer Dan Rosensweig and media group chief Lloyd Braun will depart. Shares of Yahoo! were down 50 cents to $26.93.Docucorp International (DOCC) soared 30% after the software company agreed to be acquired by privately held Skywire Software for $127 million in cash. Skywire will pay $10 a share, a 33% premium over Docucorp's closing price of $7.50 Tuesday. The deal is expected to close during the first quarter of 2007. Shares of Docucorp were adding $2.27 to $9.77.
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