Tech Stocks in Motion

Dolby Labs, Ditech and Marvell jump after their earnings top Wall Street forecasts.
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Shares of

Dolby Laboratories

(DLB) - Get Report

were among technology's winners Friday, climbing 16% after the audio technology company posted fourth-quarter results that easily topped expectations.

The company earned $16.8 million, or 15 cents a share, on sales of $78.9 million. Analysts polled by Thomson First Call expected earnings of 9 cents a share on sales of $70.5 million. A year earlier, the company earned $3.3 million, or 3 cents a share, on sales of $68.9 million. Excluding royalty payments made to founder Ray Dolby, the company would have earned $9.6 million, or 10 cents a share, a year ago.

Dolby Labs sees fiscal 2006 earnings of 46 cents to 56 cents a share, on sales of $335 million to $360 million. Dolby expects stock-based compensation costs of $19 million to $21 million. Analysts expect earnings of 56 cents a share for the fiscal year ending next September, with sales of $352.3 million. Dolby shares were up $2.39 to $17.39.

Shares of

Ditech Communications

(DITC)

jumped 27% after the telecom-equipment maker reported second-quarter results that were better than expected. The company posted a loss of $1.4 million, or 4 cents a share, compared with year-earlier earnings of $45.8 million, or $1.27 a share, including a deferred tax valuation of $35.7 million. Analysts expected a bigger loss of 6 cents a share. Ditech's sales fell to $10.5 million from $24.3 million a year ago, but matched analysts' projection.

Ditech sees third-quarter sequential sales growth of 30%, which would result in sales of about $13.7 million. Analysts had forecast sales of $13.1 million. Ditech shares rose $1.71 to $8.16.

Marvell Technology

(MRVL) - Get Report

climbed 11% after the chipmaker posted third-quarter results that beat forecasts. The company earned $93 million, or 29 cents a share, on sales of $426 million. Excluding items, the company would have earned $113.3 million, or 36 cents a share. Analysts expected earnings of 33 cents a share, before items, and sales of $420.9 million. Last year, Marvell's third-quarter earnings were $43.6 million, or 14 cents a share, on sales of $317.6 million. Before items, earnings would have been $66.6 million, or 22 cents a share, a year ago. Shares were trading up $5.73 to $56.22.

Autodesk

(ADSK) - Get Report

slumped 13% after the maker of computer-aided design software posted solid third-quarter results but offered a financial guidance that didn't please investors. The company earned $94.5 million, or 38 cents a share, on sales of $378.3 million. Excluding a one-time gain, Autodesk would have posted a profit of $77 million, or 31 cents a share. Analysts expected earnings of 30 cents a share and sales of $377.1 million. During last year's third quarter the company earned $74.1 million, or 30 cents a share, on sales of $300.2 million. Excluding items, the company earned $48 million, or 19 cents a share, last year.

For the fourth quarter, Autodesk sees earnings of 34 cents to 36 cents a share and sales of $405 million to $415 million. Analysts expect earnings of 36 cents a share on sales of $411.4 million. For the first quarter of fiscal 2007, the company forecast earnings, excluding items, of 31 cents to 33 cents a share, short of analysts' projection of 34 cents. Autodesk predicts first-quarter sales of $400 million to $410 million, shy of Wall Street's target of $413.1 million. For all of fiscal 2007, the company expects earnings, before items, of $1.41 to $1.45 a share, which would be at or below analysts' forecast of $1.45 a share. Sales are expected to grow by 10% to 12%, and by 13% to 15% on a constant currency basis. Autodesk shares were trading down $6.28 to $40.82.

Shares of

Scientific-Atlanta

(SFA)

rose 2% after the television technology company agreed to be acquired by

Cisco Systems

(CSCO) - Get Report

for about $6.9 billion, or $43 a share. The price represents a modest 4% premium to Scientific-Atlanta's Thursday's closing price of $41.45, but the company's shares have risen 17% this month amid rumors of the acquisition.

"Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services," Cisco said in a press release. "The combination of Cisco and Scientific-Atlanta brings unmatched experience and innovation in delivering large scale video systems and networks, and the addition of Scientific-Atlanta further extends Cisco's commitment to and leadership in the service provider market." Scientific-Atlanta, which has more than 7500 employees, posted sales of $1.91 billion for the fiscal year that ended July 1. The deal is expected to close during Cisco's fiscal third quarter, which ends April 30. Shares of Scientific-Atlanta were up 68 cents to $42.13, while Cisco fell 37 cents to $17.

Other technology movers included

Lucent Technologies

(LU)

, up 8 cents to $2.79;

Microsoft

(MSFT) - Get Report

, up 1 cent to $27.98;

Sun Microsystems

(SUNW) - Get Report

, up 9 cents to $3.77;

Sirius Satellite Radio

(SIRI) - Get Report

, down 9 cents to $7.24;

Intel

(INTC) - Get Report

, up 8 cents to $25.19;

JDSU

(JDSU)

, up 6 cents to $2.29;

Oracle

(ORCL) - Get Report

, up 8 cents to $12.69; and

Yahoo!

(YHOO)

, down 34 cents to $41.89.