Tech Stocks in Motion
Updated from 12:40 p.m. EST
Shares of
Western Digital
(WDC) - Get Report
were among technology's winners Thursday, rising 14.2% after the disk-drive maker raised its third-quarter earnings guidance and narrowed its sales outlook.
The company now expects earnings of 29 cents to 31 cents a share, up from previous guidance of 16 cents to 19 cents a share. Sales, meanwhile, are now expected to be between $900 million and $915 million. Analysts had been expecting earnings of 18 cents a share on sales of $901 million. Better hard-drive pricing along with stronger demand for high-capacity drives in the consumer desktop PC and consumer electronics market led to the revised outlook. Shares traded up $1.58 to $12.75.
Click Commerce
( CKCM) fell 1.9% after the company's channel management software was chosen by Subway restaurants. The software will be used by Subway to reduce the application and ramp-up process for its new franchise owners and to improve marketing program effectiveness for more than 17,000 franchisees in 80 countries. Financial terms were not disclosed. Shares traded down 27 cents to $14.27.
Shares of
Magal Security
(MAGS) - Get Report
rose 5.9% after the company signed a $6.1 million framework agreement with the Israeli Ministry of Defense. The agreement calls for Magal to continue the installation of intrusion detection systems along the seam line between Israel and the West Bank, the company said. The agreement, which is a follow-on from previous orders the company has received, is expected to be completed by the end of the third quarter of 2005. Looking ahead, Magal said it believes it "will continue to receive further orders for the installation of our systems on the seam line during this year." Shares traded up 65 cents to $11.65.
Despite cutting its first-quarter earnings and sales outlook,
Silicon Storage
(SSTI) - Get Report
rose 2.8% Thursday. The maker of flash memory chips now expects to post a loss of 11 cents to 15 cents a share on sales of $84 million to $88 million. Previously, it forecast a smaller loss of 9 cents to 13 cents a share on sales of $95 million to $105 million. Gross margin is expected to range from 15% to 17%, down from previous guidance of 17% to 21%. Analysts had been expecting a loss of 9 cents a share on sales of $98.3 million. Silicon Storage blamed the shortfall on lower-than-expected demand and lower average selling prices caused by industrywide oversupply. It said that heavy competition affected its results as well. The company will post financial results on April 21. Shares traded up 10 cents to $3.72.
Shares of
Veritas Software
(VRTS) - Get Report
fell 3.4% after the company said its annual report would be delayed for a second time because its auditor needs additional time to complete its assessment of the company's internal controls over financial reporting. On March 16, Veritas filed for an extension, hoping that its financial report would be completed by March 31. The company now expects to file its annual report with the
Securities and Exchange Commission
by April 11.
As of now, the company said it has identified two significant control deficiencies, constituting a material weakness. One of the deficiencies relates to controls over its order-entry processes, while the other weakness relates to its multiple element software license transactions. Despite the control deficiencies, the company said it does not expect the material weakness to result in restatements or adjustments for its fourth quarter or for any prior period. What's more, Veritas does not expect the delay in filing its annual report to impact its pending merger with
Symantec
(SYMC) - Get Report
. Shares traded down 82 cents to $23.22.
Other technology movers included
Microsoft
(MSFT) - Get Report
, up 1 cent to $24.17;
Cisco Systems
(CSCO) - Get Report
, down 14 cents to $17.89;
MCI
( MCIP), up 45 cents to $24.90;
Intel
(INTC) - Get Report
, down 26 cents to $23.23;
Qwest
(Q)
, down 7 cents to $3.70; and
Lucent Technologies
( LU), down 4 cents to $2.75.