Tech Stocks in Motion
Updated from 1:40 p.m. EST
Shares of
Tessera Technologies
(TSRA)
were among technology's winners Monday, rising 10.4% after the company raised its first-quarter sales outlook.
The company now expects sales of $27.3 million to $27.5 million, up from previous guidance of $21.5 million to $22 million. Tessera, which provides miniaturization technologies for the electronics industry, said the upward revision was due to new licenses that it signed and to the continued performance of its existing licenses. Tessera also said that expenses would rise to $8.8 million to $9.2 million, up from previous guidance of $8.4 million to $8.8 million. Analysts polled by Thomson First Call had been expecting first-quarter sales of $21.8 million. Shares traded up $3.94 to $41.99.
Mykrolis
(MYK)
rose 4.8% after it agreed to be acquired by
Entegris
(ENTG) - Get Report
in a deal that is worth about $580 million, or $13.80 a share, to Mykrolis shareholders. Entegris will have a 56% stake in the combined entity. Shareholders of Mykrolis will receive 1.39 shares of Entegris for each share of Mykrolis they hold. The deal is expected to be neutral to earnings during the second half of 2005 and accretive by about 8 cents a share during 2006. The companies, both of which are suppliers to the semiconductor industry, said the deal is expected to close during the third quarter. Shares of Mykrolis traded up 63 cents to $13.78, while shares of Entegris traded down 3 cents to $9.90.
Shares of
Ingram Micro
(IM)
rose 1.4% after the computer-products distributor reaffirmed its first-quarter guidance. The company expects earnings of $47 million to $50 million, or 28 cents to 30 cents a share, on sales of $7 billion to $7.2 billion. Analysts expect earnings of 29 cents a share on sales of $7.12 billion. The reaffirmation, which was made late Friday, was made in advance of individual meetings the company expects to have with investors this week. Ingram will release first-quarter results in late April. Shares traded up 23 cents to $16.73.
SunGard
(SDS) - Get Report
jumped 24.5% after the company confirmed that it is in discussions to be acquired. The software provider said that it has authorized its advisers and management to engage in the buyout discussions, while simultaneously proceeding with the planned spinoff of the company's Availability Services unit, which the company announced last fall. The
New York Post
reported early Monday that SunGard was being pursued by a buyout group led by
Silver Lake Partners
in a deal that could be worth as much as $10 billion. SunGard said that it doesn't intend to comment on any specific discussions or any potential transaction until it has an agreement in hand. Shares of SunGard traded up $6.12 to $31.07.
Shares of
Rambus
(RMBS) - Get Report
vaulted 29.8% after the company reached a settlement with
Infineon Technologies
( IFX) over a patent dispute and entered into a cross-licensing agreement. As part of the deal, Rambus will receive a quarterly license fee of $5.85 million that begins Nov. 15, 2005 and runs through Nov. 15, 2007. After November 2007, Rambus could receive quarterly payments that amount to as much as $100 million. Separately, Rambus forecast first-quarter sales of $37 million to $38 million, down from previous guidance of $38 million to $42 million. Total spending is now expected to be between $33 million and $36 million, up from $30 million to $34 million. Analysts are expecting sales of $39.7 million. Shares of Rambus traded up $3.91 to $17.03.
Other technology movers included
Microsoft
(MSFT) - Get Report
, down 11 cents to $24.20;
Oracle
(ORCL) - Get Report
, up 11 cents to $12.65;
Ask Jeeves
( ASKJ), up $4.43 to $28.67;
Intel
(INTC) - Get Report
, up 9 cents to $23.50; and
Cisco
(CSCO) - Get Report
, up 14 cents to $17.94;
Nortel
( NT), down 18 cents to $2.79; and
Lucent
( LU), down 6 cents to $2.81.