Updated from 10:53 a.m. EDT
Tech stocks moved slightly higher Monday as several companies in the tech sector made acquisitions.
plunged 9.4% after the supercomputer maker warned that a revenue shortfall may cause it to post a loss during 2007. The company sees revenue of $200 million or below. As a result, there is an "increased probability" that it will not be profitable during 2007, the company said. Analysts polled by Thomson Financial project a profit of 12 cents a share on revenue of $226.1 million. "We are disappointed with the implications of this change in timing to our Cray XT4 system rollout schedule and the impact on our 2007 outlook," the company said. Shares closed down 75 cents to $7.20.
( PALM) rose 9.2% after the maker of smart phone devices agreed to sell a 25% stake in Palm to private-equity firm Elevation Partners for $325 million. Under the recapitalization plan, shareholders will also receive a special distribution of $9 a share in cash. In all, Palm plans to distribute some $940 million to shareholders. "As a result of this transaction, we will strengthen the Palm leadership team and create a more effective capital structure, which puts us in a great position to attract new talent, significantly strengthen our execution capabilities, and deliver long-term shareholder value," Palm said. Shares closed up $1.48 to $17.57.
( SLR) soared 15.1% after the contract electronics manufacturer agreed to be acquired by
for $3.6 billion in cash and stock. Shareholders will receive $3.89 a share in cash or 0.345 shares of stock. Flextronics expects to issue more than 50% of the deal's total consideration in stock and could issue as much as 70% in stock. The cash portion of the acquisition represents a 15% premium to Solectron's closing price of $3.37 on Friday and the stock portion represents a premium of about 20%. The deal is expected to close by the end of the year. Shares of Solectron were up 51 cents to $3.88. Flextronics shares were down 16 cents, or 1.4%, to $11.54.
Cadence Design Systems
rose 5.8% after the online edition of
The New York Times
reported that Cadence is nearing a deal to be acquired. According to the report, the software company has discussed a buyout with at least two firms, including Kohlberg Kravis Roberts and The Blackstone Group. Shares of Cadence were closed up $1.32 to $24.22.
rose modestly after the information technology concern agreed to buy privately held InfoGenesis for $90 million in cash. InfoGenesis generates about $42 million a year in revenue. "With some of the world's leading properties as customers, the acquisition of InfoGenesis will further strengthen Agilysys' market position in the hospitality industry," Agilysys said. The deal is expected to close before the end of June. Shares of Agilysys closed up 3 cents to $22.19.
As for the broader technology sector, the Nasdaq 100 was up 5.47 points to 1933.73.