Thursday's Tech Winners & Losers
Updated from 2:18 p.m. EDT
Tech stocks were moving to the upside Thursday, boosted by partnership, M&A and earnings news.
Sify (SIFY) traded actively, jumping 13% earlier in the day after the Internet services company said that it would hook up with Microsoft (MSFT) to provide easier access to Internet and IT services in India. "Sify will offer its cyber cafe subscribers access to licensed Microsoft Office software to begin with, so that they can use the cafe as a virtual office for their needs," Sify said. The partnership between Sify and Microsoft India will also include other certification programs, Sify said. Shares of Sify closed up 10 cents, or 1%, to $10.25.
Meanwhile, Cirrus Logic (CRUS) rose 3.3% after the maker of analog and mixed-signal integrated circuits announced a deal to purchase privately held Apex Microtechnology for $42 million in cash. Cirrus expects the acquisition to be accretive to earnings by the third quarter of fiscal 2008. The deal is expected to close by the end of August. Shares of Cirrus closed up 28 cents to $8.81.Methode Electronics (METH) rose 7% after the electronic components maker posted better-than-expected fourth-quarter results. The company posted earnings of $12.1 million, or 33 cents a share, on revenue of $130.9 million. Analysts expected earnings of 15 cents a share on revenue of $117.3 million. Looking ahead, Methode sees fiscal 2008 earnings of 60 cents to 70 cents a share on revenue of $450 million to $470 million. The company said that it would no longer provide quarterly earnings guidance, citing a volatile U.S. automotive market. Shares closed up $1.21 to $18.58. On the losing side, shares of Multi-Fineline Electronix (MFLX) slid 6% after the maker of assembly systems used by the electronics industry warned that third-quarter results would fall short of expectations. The company sees a third-quarter loss on revenue of $113.4 million. Analysts polled by Thomson Financial project a profit of 14 cents a share on revenue of $116.4 million. The company blamed the shortfall on an ongoing decline in sales to its largest customer. The company said that it plans to report its full results in early August. Shares closed down $1.02 to $16.13. Finally, shares of Motorola (MOT) traded actively after the cell-phone maker warned that second-quarter results would be disappointing to investors. The company sees an adjusted loss of a penny a share to a profit of 2 cents a share on revenue of $8.6 billion to $8.7 billion. Previously, the company said that it would earn between 2 and 3 cents a share on revenue of about $9.4 billion. "The company's shortfall in sales and earnings for the second quarter is primarily attributable to lower overall unit volumes in the Mobile Devices business in Asia and Europe," Motorola said. Shares were down 6 cents earlier in the day but closed up 13 cents, or 0.7%, to $18.08. As for the broader technology sector, the Nasdaq 100 was up 36.95 points to about 2021.
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