Tech Stocks in Motion

S1 falls on sales guidance.
Author:
Publish date:

Shares of

S1

(SONE)

were among technology's losers Monday, falling 11% after the software company narrowed its second-quarter earnings guidance but warned that sales would be below Wall Street expectations.

The company, which provides software to financial institutions, expects earnings of 2 cents to 3 cents a share on sales of $62 million to $62.5 million. Previously, the company said that it would earn 1 cent to 3 cents a share on sales of $63 million to $64.5 million. Analysts surveyed by Thomson First Call had been expecting earnings of 2 cents a share on sales of $63.6 million. S1 forecast financial institutions sales of $54 million to $54.5 million, below previous guidance of $56 million to $57 million.

S1 also announced the departure of chief executive Jaime Ellertson. Co-founder James "Chip" Mahan III, who currently serves as chairman, and served as CEO from 1995 to 2000, will replace Ellertson. S1 did not offer an explanation for Ellertson's exit. Shares were trading down 60 cents to $4.81.

Anadigics

(ANAD)

rose 5% after the maker of communication chips posted second-quarter results that were better than expected. The company reported a loss of $9.1 million, or 27 cents a share, on sales of $23.9 million. Analysts were expecting a bigger loss of 32 cents a share on sales of $23.3 million. A year ago the company posted a loss of $11.7 million, or 36 cents a share, on sales of $22.7 million. Looking ahead, Anadigics said that its loss and sales would improve by 10% on a sequential basis, which would imply a third-quarter loss of 24 cents a share on sales of $26.3 million. Analysts are expecting a loss of 27 cents a share on sales of $25.8 million. Shares were trading up 12 cents to $2.34.

Shares of

Silicom

(SILCF)

rose 11% after the company swung to a second-quarter profit on a big jump in sales. The maker of server adapters earned $315,000, or 7 cents a share, on sales of $2.6 million. A year ago the company posted a loss of $544,000, or 13 cents a share, on sales of $895,000. Shares were trading up 40 cents to $4.20.

Teleglobe International

(TLGB)

rose 17% after the voice and data company agreed to be acquired by India's

Videsh Sanchar Nigam

(VSL) - Get Report

, or VSNL, for $4.50 a share in cash. Including the assumption of debt, the total value of the deal is worth $239 million. The price represents a premium of 22% over Teleglobe's closing price of $3.69 on Friday. VSNL, which is part of the $17 billion Tata Group, India's largest industrial conglomerate, expects the deal to close within the next 6 to 8 months. Shares of Teleglobe were recently trading up 62 cents to $4.31 while shares of VSNL were trading up 73 cents, or 4%, to $17.61.

Shares of

M-Systems

(FLSH)

traded actively after the maker of flash memory storage posted second-quarter results that topped forecasts. The company earned $7.6 million, or 19 cents a share, on sales of $105.7 million. Analysts were expecting earnings of 17 cents a share on sales of $98.2 million. A year ago the company earned $5.4 million, or 14 cents a share, on sales of $84.2 million. Looking ahead, M-Systems said that it expects bottom- and top-line growth over second-quarter results. What's more, the company said that it continues to expect 2005 earnings that are at or above $1 a share on sales of at least $450 million. Analysts are expecting third-quarter earnings of 28 cents a share on sales of $117.9 million. For the year, analysts are expecting earnings of $1.03 a share on sales of $457.8 million. Shares were trading down 22 cents to $23.23.

Other technology movers included

Microsoft

(MSFT) - Get Report

, up 12 cents to $25.80;

Motorola

(MOT)

, up 64 cents to $20.64;

Cisco Systems

(CSCO) - Get Report

, down 31 cents to $19.01;

Intel

(INTC) - Get Report

, down 13 cents to $26.62;

Sun Microsystems

(SUNW) - Get Report

, down 3 cents to $3.85;

Sirius Satellite Radio

(SIRI) - Get Report

, up 6 cents to $6.99;

Lucent Technologies

(LU)

, up 3 cents to $2.88;

eBay

(EBAY) - Get Report

, down 3 cents to $40.99;

Synergx Systems

(SYNX)

, up $2.50 to $5.62;

Yahoo!

(YHOO)

, up 14 cents to $33.67; and

Oracle

(ORCL) - Get Report

, up 1 cent to $13.81.