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Advent Soars, Integrated Leaps: Tech Winners & Losers

NEW YORK (TheStreet) –– Advent Software (ADVS) shares rose 8.3% to $33.83 following yesterday’s release of better than expected second-quarter earnings.

The company, which makes software for investment management firms, earned 38 cents per share on $100.4 million in revenues last quarter, a 4.5% revenue increase year-over-year. Analysts polled by Thomson Reuters expected Advent to earn 34 cents per share on $97.8 million in revenues. Advent issued third quarter revenue guidance between $99 million and $102 million, in line with analysts’ expectation of $101.8 million. Its full year revenue guidance of $395 million to $403 million is also in line with the current $398.8 consensus.

"We are pleased to report that Advent had an excellent second quarter with record revenues, robust profitability, and growing operating cash flow," said CEO Pete Hess in the press release. "Increasing demand for Advent's solutions, including Advent Direct Investor Management, and continued client loyalty are evidence of our strong competitive position."

Advent ended the quarter with $41 million in cash, down from $45 million last quarter. It reduced its outstanding debt to $280 million from $295 million last quarter.

Shares of Integrated Device Technology (IDTI - Get Report) shot up 12.8% to $15.26 after reporting earnings that exceeded expectations.

For the first quarter of its 2015 fiscal year, which ended June 29, IDT reported revenues of $126.3 million, up 6.5% from last quarter and 7.5% year-over-year. Analysts were expecting revenues of $124.97. The company earned 17 cents per share, up from 14 cents last quarter and 7 cents one year ago. Analysts expected 16 cents per share.

"We are off to a strong start in fiscal 2015 with our first fiscal quarter results demonstrating consistently improving financial performance across all key metrics," said CEO Greg Waters. "Underpinning these results was strength and market share gains across all of our end markets; revenue from our Communications, Computing, and Consumer end markets all grew sequentially in the quarter." He added, “Looking ahead we are confident in our ability to continue executing on our growth strategy with all key areas of our business contributing to that growth.”

IDT also revealed in the report that LG Electronics had built an IDT wireless power receiver into its G3 smartphone. According to the press release, LG and IDT “worked together closely to integrate the chip, which delivers a compact size and simplified application circuit.”

Founded in 1980, IDT is based in San Jose and designs and manufactures semiconductors.

Oracle (ORCL - Get Report) shares rose 0.8% to $40.86 after slashing its compensation to its CEO.

According to a regulatory filing released Monday, Oracle granted founder and CEO Larry Ellison 3 million stock options, less than half of the 7 million he has received in previous years. Other Oracle executives saw similar reductions on Monday. For example, co-presidents Mark Hurd and Safra Catz each saw their stock options drop to 2.25 million from 5 million.

Some Oracle shareholders have periodically opposed Ellison’s compensation. In October of last year, 57% of Oracle shareholders voted for the second year in a row against a “say on pay” proposal, which would allow shareholders to vote on executive compensation. 59% voted against the same proposal in 2012. Labor groups had encouraged shareholders to try to curb what they deemed was excessive compensation to Ellison, regardless of the stock’s performance.

Ellison’s annual salary is one dollar; he receives the rest of his pay in stock options. According to Oracle’s most recent proxy statement, he owns more than 1.1 billion shares, or 25% of Oracle’s stock. His compensation in the company’s fiscal year ended May 31, 2013 was $76.9 million; Oracle’s share price rose about 28% during that period. Forbes estimates Ellison’s net worth at $50.3 billion, making him the third-richest person in the United States and the fifth-richest in the world. Oracle could not be reached for comment.

CommVault Systems (CVLT - Get Report) shares rose 4.1% to $51.48 following the release of strong earnings.

In its fiscal 2015 first quarter, which ended June 30, CommVault earned 44 cents per share on $152.6 million in revenues. This represents a 14% revenue increase year-over-year and a 3% decrease sequentially. Analysts surveyed by Thomson Reuters expected revenues of $150.97 million. Software revenue increased 10% year-over-year and decreased 9% sequentially, while services revenue increased 17% year-over-year and 4% sequentially.

"We began fiscal year 2015 with a solid first quarter, which was highlighted by year-over-year revenue growth of 14% and year-over-year operating cash flow growth of 44%. Our year-over-year revenue growth was driven by a record percentage of enterprise software revenue (software transactions greater than $100,000), a record average enterprise deal size and solid results from our services organization," said CEO N. Robert Hammer in the press release. “Given the many opportunities ahead of us, we will continue to aggressively invest for growth throughout the remainder of fiscal 2015.”

CommVault, headquartered in New Jersey, makes data management and information management software. In June 2014, it won the 2014 Microsoft (MSFT) Server Platform Partner of the Year Award for “demonstrating excellence in innovation and implementation of customer solutions based on Microsoft technology.” In May, the company announced that it had extended a 15-year agreement with Microsoft to “provide new, highly scalable solutions for managing and protecting data in Hyper-V virtual environments, managing workloads in Microsoft Azure, and new integration for Exchange, Office 365, SharePoint, and SQL Server applications.”

Shares of Medidata Solutions (MDSO) jumped 17.6% to $46.06 after its quarterly earnings beat company records.

Medidata, which provides cloud-based solutions for clinical research in life sciences, reported its second quarter 2014 results this morning. Revenues reached a record high of $83.2 million, a 22% increase year-over-year. Subscription revenue also increased 22% year-over-year, to $68.9 million, also a record. The company earned 17 cents per share, down from 18 cents per share a year earlier. Analysts expected the company to earn 17 cents per share on 81.90 million in revenue.

"Medidata's track record of strong growth, profitability and successful innovation gives us great confidence in our future ability to grow and extend our lead in the industry," said CEO Tarek Sherif. "Our market opportunity is significant and we are successfully executing on our near- and long-term plan. Reflecting on Medidata's performance this quarter, we continue to benefit from many of the same positive trends we have seen over the past 18 months.” He added, “Our ability to innovate and expand the breadth and relevance of our platform is fueling greater interest and awareness of our solutions across the globe and is contributing to our growing pipeline of opportunities."

Medidata ended the quarter with $418.5 million in cash and marketable securities, nearly quadruple the amount from a year earlier, “primarily due to net proceeds from the convertible senior notes issued during 2013 and strong cash flows over the past year.”

--Written by Laura Berman in New York

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