Updated from 12:23 p.m. EDT
Tech stocks were flat Wednesday, as earnings and a buyout moved some names in the sector.
Solarfun Power Holdings (SOLF) plunged 22.7% after the maker of solar cells swung to a first-quarter loss and cut its full-year revenue outlook. The company reported a loss of $328,000, or less than a penny a share, on revenue of $24.6 million. During the year-earlier quarter, the company earned $4.3 million on revenue of $13.3 million.
Looking ahead, Solarfun now sees full-year revenue of $250 million to $270 million, down from an earlier view of $265 million to $285 million. Shares closed down $2.82 to $9.60.Elsewhere, CDW (CDWC) rose 2.5% after the computer-products seller agreed to be acquired by private-equity firm Madison Dearborn Partners for about $7.3 billion. Shareholders will receive $87.75 a share, representing a 6% premium to Tuesday's closing price. "This transaction represents the next chapter for CDW," the company said in a press release. "We believe it provides a compelling opportunity to immediately maximize value for our shareholders." The deal is expected to close at the end of the third quarter or early in the fourth quarter. Shares closed up $2.06 to $85.17. Meanwhile, Applied Signal Technology (APSG) fell 7.4% after the maker of digital-signal processing equipment posted disappointing second-quarter results. The company earned $1.6 million, or 13 cents a share, on revenue of $41.1 million. Analysts expected earnings of 14 cents a share on revenue of $42.8 million. During the year-earlier quarter, the company earned $1.5 million, or 13 cents a share, on revenue of $43.5 million. Shares closed down $1.25 to $15.72. Versant (VSNT) jumped 10.3% after the software company posted big gains in earnings and revenue in its fiscal second quarter. The company earned $1.9 million, or 52 cents a share, on revenue of $5.2 million. During the year-earlier period, the company earned $1.2 million, or 32 cents a share, on revenue of $3.8 million. "This quarter was extremely strong, especially in light of the fact that Versant's second fiscal quarter is typically a relatively weaker quarter," the company said. Looking ahead, Versant sees 2007 earnings of $1.50 to $1.62 a share on revenue growth of 10%. Shares closed up $1.95 to $20.94. Navteq (NVT) jumped 8.3% after the company, which maintains and runs a digital map database for North America and Europe, made a presentation at the Lehman Brothers Worldwide Wireless and Wireline Conference in New York Wednesday morning. The presentation was Webcast live. Shares were up $3.08 to $40.35. As for the broader technology sector, the Nasdaq 100 was up 18.29 points to about 1918.