Monday's Tech Winners & Losers
Updated from 12:31 p.m. EDT
Technology stocks gained Monday, despite being tempered by a big buyout in the digital navigation space.
Shares of digital mapmaker Navteq (NVT) fell 2%, after digital phone maker Nokia (NOK) said it would acquire the company for $8.1 billion in cash. The deal values Navteq at $78 a share, a slight premium to its Friday closing price of $77.97.
The deal comes as phone makers and wireless carriers increasingly are looking to navigation devices as add-ons to their services. Nokia gained 3 cents to $37.96, while Navteq was shedding $1.52 to $76.45. Navteq's biggest customer, digital device maker Garmin (GRMN), was plummeting $12.17, or 10.2%, to $107.23.Garmin is a component of the Nasdaq 100, which was up 25.86 points to 2116.97. A pair of Chinese companies boosted the tech sector on licensing deals and new contracts. China Techfaith Wireless Communications (CNTF) spiked 21.7%, after chipmaker Qualcomm (QCOM) licensed 3G modem cards to the Chinese mobile handset maker. China Techfaith shares were rising $1.45 to $8.14. Yucheng Technologies (YTEC), an IT consultant to the Chinese banking industry, jumped 15.7% after it said it had won three contracts worth $8.9 million. Shares were advancing $1.51 to $11.11. Teradata (TDC) shares were up 7.3%, after the data warehousing firm completed its spinoff from IT consultant NCR (NCR). As part of the spinoff, NCR distributed one share of Teradata stock for each NCR share owned by shareholders as of Sept. 14. NCR was losing $25.87 to $23.93, while Teradata was gaining $1.90 to $27.98. Shares of Radvision (RVSN) were down over 17.4% after the company lowered its third-quarter revenue forecast. The company now expects revenue of $20.5 million, compared with its previous projection of $25 million. Analysts anticipated revenue of $25.1 million, according to Thomson Financial. Radvision, which makes products for videoconferencing, video telephony and the development of voice-over-Internet protocol systems, said the decline is due to lower-than-expected sales both to the federal market and through its channels. Shares were falling $3.06 to $14.50. Acxiom (ACXM) shares plummeted 19.7%, after it reached an agreement with two private equity firms to end a previously announced $2.25 billion buyout. Silver Lake and ValueAct Partners will pay $65 million in cash to the data management company as a break-up fee. Acxiom shares were falling $3.90 to $15.89.
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