Updated from 11:38 a.m. EDT
Tech stocks moved slightly lower Monday, weighed down by poor earnings from companies like
(LXK - Get Report)
The printer maker tumbled 6.6% after warning that second- and third-quarter earnings would fall short of expectations. The company sees adjusted earnings of 62 cents to 67 cents a share during the second quarter on a revenue decline of about 2%. Previously, Lexmark projected earnings of 82 cents to 92 cents a share on revenue growth that was expected to be in the low- to mid-single digits. Both forecasts include a tax benefit of 5 cents a share. Analysts project earnings of 86 cents a share on revenue of $1.21 billion.
"This shortfall is primarily due to less than expected inkjet supplies revenue, lower hardware average unit revenue driven by aggressive pricing and promotion, some greater than expected product costs, and greater than expected branded inkjet unit growth," the company said.
For the third quarter, Lexmark sees earnings of break-even to 10 cents a share. Analysts project earnings of 81 cents a share. Shares closed down $3.27 to $46.13.
Nu Horizons Electronics
slid 11.7% after the distributor of electronic components posted a first-quarter earnings shortfall. The company earned $1.8 million, or 10 cents a share, on revenue of $193.2 million. Analysts expected earnings of 14 cents a share on revenue of $188.3 million. Shares were down $1.57 to $11.85.
(ORBK - Get Report)
fell 6.4% after the maker of optical inspection systems warned that 2007 sales from flat-panel display inspection equipment would be lower than expected. The company now sees sales of about $50 million, about $35 million below the company's previous guidance. The company, which expected a downturn in the flat-panel display industry, underestimated its depth, it said. "This downturn, which is expected to characterize 2007, is now estimated to be deeper than previously anticipated as LCD manufacturers delay the scheduled 'move in' dates for their new fabrication facilities to mid-2008," Orbotech said. Still, based on strong bookings anticipated during the second half, the company expects a strong rebound in revenue during 2008. Shares closed down $1.51 to $21.98.
A few tech stocks bucked the market's trend.
climbed 23.8% after the chipmaker boosted its second-quarter revenue forecast. The company now sees revenue of $30 million to $31 million, up from an earlier view of $24 million to $28 million. Analysts project revenue of $26.6 million. "We attribute our higher than forecast revenue to sales improvement across the board and improved execution throughout the company," Sigmatel said. Shares closed up 70 cents to $3.64.
(FSLR - Get Report)
jumped 24% after the maker of solar modules entered into five agreements worth nearly $1.3 billion. Under the agreements, First Solar will make and sell solar modules totaling 685 megawatts. First Solar also entered into long-term agreements with EDF Energies Nouvelles and Sechilienne-Sidec. "These contracts signal a major expansion into the solar market by leading energy firms with significant resources and capabilities and will accelerate the continuing evolution of the solar industry," First Solar said. Included in the new agreements is a multiyear agreement with SunEdison, which will deploy First Solar's modules in Ontario, Canada. Shares closed up $23.05 to $119.34.
As for the broader technology sector, the Nasdaq 100 was up less than a point to about 1989.