Friday's Tech Winners & Losers

WebMethods, O2Micro and Business Objects tumble after cutting guidance.

Author:
Mark Martinez
Publish date:
Jul 7, 2006 10:52 AM EDT

WebMethods, O2Micro and Business Objects tumble after cutting guidance.

Shares of

WebMethods

( WEBM) were among technology's losers Friday, plunging 26% after the software company slashed its first-quarter estimates.

For the period ended June 30, the company now sees a first-quarter loss of 12 cents to 15 cents a share, compared with an earlier view that called for a profit of 1 cent to 5 cents a share. The company now projects revenue of $44 million to $45.5 million, down from an earlier forecast of $51 million to $53 million. Analysts polled by Thomson First Call project earnings of 7 cents a share and revenue of $52.5 million. WebMethods also lowered its forecast for license revenue to $11.5 million to $12.5 million from an earlier view of $18.5 million to $20 million.

"We are obviously disappointed with our first-quarter results," the company said. "Our preliminary analysis indicates that we failed to effectively anticipate additional steps in the customer-procurement processes associated with a number of our forecasted transactions." WebMethods plans to release its first-quarter results on July 27. Shares were trading down $2.54 to $7.04.

O2Micro International

(OIIM) - Get Free Report

slumped 15% after the company projected second-quarter revenue below expectations. The company, a supplier of security components and systems to the computer and communications industries, estimated a sequential sales decline of 3% to 4%. Based on first-quarter revenue of $29.1 million, the projection implies second-quarter revenue of $27.9 million to $28.2 million. Analysts had forecast revenue of $30.4 million.

O2Micro blamed the weaker-than-expected estimate on a slowdown in sales of LCD monitors, LCD TVs and notebooks. O2Micro also expects to post a loss during the quarter. The company said that its results were hurt by higher-than-expected litigation costs and an impairment loss from its investment in CSMC Technologies. Analysts project earnings of 4 cents a share. Shares were trading down $1.19 to $6.68.

Shares of

Business Objects

( BOBJ) plummeted 25% after the software company cut its second-quarter earnings and revenue forecast. The company expects adjusted earnings, which excludes items, of 25 cents to 28 cents a share, with revenue of $287 million to $291 million. Previously, the company projected earnings of 30 cents to 33 cents a share on revenue of $295 million to $300 million. Analysts predict earnings of 33 cents a share on revenue of $298.5 million. Business Objects expects license revenue of $116 million to $118 million and services revenue of $171 million to $173 million.

"We are disappointed with our performance this quarter," Business Objects said. "Despite total revenue growing year-over-year, our license revenue was below expectations, due in part to a lower closing rate on large transactions." The company said that it was also hurt by declining revenue in the European and Asia-Pacific regions. Shares were trading down $6.83 to $19.96.

NMS Communications

( NMSS) tumbled 31% after the provider of telecom equipment warned that second-quarter results would be lower than expected. The company now sees an adjusted loss of 2 cents to 3 cents a share on revenue of $25 million to $26 million. NMS had previously forecast a profit of 2 cents to 4 cents a share and revenue of $29 million to $31 million. Analysts project earnings of 3 cents a share on revenue of $30 million.

"We are clearly disappointed with the financial results we expect to deliver for the second quarter," the company said. "Revenues from our platform-solutions business are expected to be well below Q1 levels and our expectations for the second quarter." NMS plans to issue second-quarter results on July 27. Shares were down $1.14 to $2.54.

Shares of

Tibco Software

(TIBX)

rose 7% after the software company posted better-than-expected second-quarter results. For the period ended June 4, the company earned $24.5 million, or 11 cents a share, on revenue of $121.2 million. Excluding items, the company earned $16.9 million, or 8 cents a share. Analysts expected earnings of 6 cents a share on revenue of $118 million. During the year-earlier quarter, the company posted adjusted earnings of $8.6 million, or 4 cents a share, on revenue of $101.4 million. Shares were up 48 cents to $7.52.

Other technology movers included

Intel

(INTC) - Get Free Report

, down 23 cents to $18.62;

Microsoft

(MSFT) - Get Free Report

, up 1 cent to $23.48;

Oracle

(ORCL) - Get Free Report

, up 14 cents to $14.64;

Sun Microsystems

(SUNW) - Get Free Report