Tech Stocks in Motion

Airspan slides on lowered outlook.
Author:
Publish date:

Shares of

Airspan Networks

(AIRN)

were among technology's losers Wednesday, falling 5% after the company cut its second-quarter outlook and said third-quarter sales would be slightly below Wall Street expectations.

The wireless networking equipment company now believes that its operation loss will be wider than the $2.9 million it had previously forecast. Sales, meanwhile, are now expected to be $21 million. Previously, the company had said that it would report sales of $23.8 million. Analysts polled by Thomson First Call are expecting a loss of 6 cents a share on sales of $24.5 million. Airspan blamed the second-quarter shortfall on a lack of availability of a key component used in the manufacture of some of its Proximity products. Looking ahead, Airspan forecast third-quarter sales of $28 million. Analysts are expecting sales of $28.8 million. Shares were trading down 25 cents to $5.15.

ADE

(ADEX)

fell 20% after the company posted fourth-quarter earnings that beat expectations but warned that a supply issue would hurt its first-quarter results. During the fourth quarter, the posted pro forma earnings of $5.9 million, or 41 cents a share, on sales of $29.8 million. Analysts were expecting earnings of 39 cents a share on sales of $29.8 million. A year ago the company posted earnings of $3.2 million, or 41 cents a share, on sales of $26.2 million.

Looking ahead, ADE forecast first-quarter earnings of $2 million to $2.5 million, or 14 cents to 17 cents a share, on sales of $24 million to $25 million. Analysts had been expecting earnings of 36 cents a share on sales of $30 million. ADE said first-quarter sales would be hurt by a shipment delay of a multi-million dollar order that's related to a temporary supply issue. Shares were trading down $5.85 to $23.18.

Shares of

GTSI

(GTSI)

fell 1% after the company said that second-quarter results would be hurt by lower bookings and shipments. GTSI said the weak results were the result of "internal distractions" and other "difficulties" surrounding the implementation of its new enterprise resource planning system. Additionally, the company said that its long-term goal of doubling sales by 2007 would be adversely affected as a result of conditions in its business. "The second quarter has been a tough one for our customers, vendor partners, and employees," the company said. The company added that it has had difficulties in delivering products to many of its customers because of the problems associated with its ERP implementation. "This has caused disruption to some customer relationships," it said. Shares were recently trading down 8 cents to $8.17.

Therma-Wave

(TWAV)

fell 7% after the company said that its independent auditor included a "going concern" qualification in the company's annual report filed with the

Securities and Exchange Commission

. Therma-Wave said the qualification was included because of recurring losses and negative cash flow. Shares were trading down 16 cents to $2.

Despite trimming its first-quarter outlook, shares of

webMethods

(WEBM)

rose almost 4% Wednesday. The company now believes that it will post a pro forma loss of 1 cent a share to a profit of 1 cent a share. Previously, the company said that it would report a pro forma loss of 1 cent a share to a profit of 2 cents a share. Sales are now expected to be between $47 million and $48 million, below previous guidance of $49 million to $52 million. Analysts are expecting the company to post breakeven earnings on sales of $50.4 million. Shares were recently trading up 20 cents to $5.56.

Other technology movers included

Oracle

(ORCL) - Get Report

, up 13 cents to $13.40;

Microsoft

(MSFT) - Get Report

, down 12 cents to $24.86;

Sun Microsystems

(SUNW) - Get Report

, up 5 cents to $3.69;

Intel

(INTC) - Get Report

, up 19 cents to $26.87;

Cisco Systems

(CSCO) - Get Report

, up 18 cents to $19;

Sirius Satellite Radio

(SIRI) - Get Report

, up 6 cents to $6.67;

Nortel Networks

(NT)

, down 4 cents to $2.53; and

Lucent Technologies

(LU)

, down 1 cent to $2.96.