Thursday's Tech Winners & Losers
Updated from 11:06 a.m. EDT
Merger activity and earnings news moved technology stocks higher Thursday.
Covansys (CVNS) soared 24.2% after the information-technology services company agreed to be acquired by Computers Sciences (CSC) for about $1.3 billion, or $34 a share in cash. "With this action, we are significantly strengthening our capabilities and presence in India as well as creating an additional market channel for our industry, consulting and outsourcing solutions," Computer Sciences said. The deal is expected to close during Computer Sciences' second quarter. Covansys shares closed up $6.49 to $33.29.
Elsewhere, Xilinx (XLNX) rose 3.4% after the chipmaker posted better-than-expected fourth-quarter results. For the quarter ended March 31, the company earned $87.6 million, or 27 cents a share, on revenue of $443.5 million. Analysts polled by Thomson Financial expected earnings of 23 cents a share on revenue of $441.3 million. During the year-earlier quarter, the company earned $110.7 million, or 32 cents a share, on revenue of $472.3 million.Looking ahead, Xilinx sees a sequential revenue gain of 1% to 5%, which would result in revenue of about $448 million to $466 million during the first quarter. Analysts project revenue of $453.5 million. Shares closed up 98 cents to $30.18. Also climbing was F5 Networks (FFIV), which posted second-quarter results that topped forecasts. Shares jumped 21% after the software company posted earnings of $20 million, or 47 cents a share, on revenue of $127.6 million. Analysts expected earnings of 45 cents a share on revenue of $125.5 million. During the year-earlier quarter, the company earned $16.1 million, or 39 cents a share, on revenue of $94.1 million. Looking ahead, F5 Networks sees third-quarter earnings of 48 cents to 50 cents a share on revenue of $131 million to $133 million. Analysts project earnings of 48 cents a share on revenue of $130.8 million. Shares closed up $13.86 to $79.93.
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