were among technology's losers Tuesday, tumbling 10% after the company issued a weaker-than-expected guidance and announced plans to buy
Progress reported fiscal fourth-quarter earnings of $14 million, or 33 cents a share, up from $15.9 million, or 28 cents a share, a year earlier. Excluding certain items, the software company earned $16.3 million, or 38 cents a share, on an adjusted basis, beating analysts' estimate by a penny. Revenue rose to $108 million from $96.2 million a year earlier, topping Wall Street's forecast of $105.8 million. But for the first quarter, Progress sees adjusted earnings of 29 cents to 31 cents a share, below analysts' expectation of 32 cents. The company expects revenue of $103 million to $105 million, compared with Wall Street's target of $105 million. For the full year, Progress sees adjusted earnings of $1.45 to $1.51 a share, and revenue of $435 million to $445 million. Analysts project earnings of $1.51 a share and revenue of $444 million.
Separately, Progress agreed to pay $6.20 a share to buy Neon, a maker of mainframe integration products. The price represents a 43% premium to Neon's Monday closing price of $4.35. The deal is valued at $68 million. Shares of Progress Software were trading down $3.30 to $27.89, while Neon shares jumped $1.78, or 41%, to $6.13.
increased its fourth-quarter sales and margin forecasts, citing stronger-than-expected demand and improved factory utilization. The provider of semiconductor assembly and test services now expects revenue to rise 13% to 15% from the third quarter, compared with its earlier guidance for 6% to 8% sequential growth. Based on the third-quarter top line of $549.6 million, the new forecast suggests revenue of $621 million to $632 million. Analysts polled by Thomson First Call have an average estimate for revenue of $589.8 million. Amkor improved its gross margin projection to 22% to 23% from 19% to 20%. The company's shares were up 62 cents, or 11%, to $6.23.
shares gained nearly 9% after the identity security company said it named former CIA director George Tenet to its board. The company also named Robert LaPenta, the CEO of private investment management firm L-1 Investment Partners, as its chairman. Viisage shares rose $1.35 to $17.24.
A yearlong runup in shares of
was interrupted after the stock was downgraded at A.G. Edwards. The brokerage lowered its investment rating to hold from buy, saying the shares are properly priced after more than doubling since January. According to the analyst, the incremental profit contribution from a recent acquisition is also reflected in the stock price. Diodes fell 8.7% to $31.12.
jumped after its Corrigent Systems unit said WilTel Communications will use one of its networking devices in certain U.S. cities. The product is the CM-100 Packet ADM, an "add drop multiplexer" that helps direct voice and data over networks. Corrigent said it got the deal after a year of analysis and testing by WilTel for a program to expand its metropolitan network system. Orckit rose 10% to $25.22.
rose after its ModusLink unit launched a Web site where retailers and other clients can liquidate inventory to pre-qualified buyers. The site, ModusLinkAuction.com, is part of a portfolio of services the subsidiary sells to companies trying to reduce liquidation costs. It's a a "low-cost sales venue for maximum margin recovery during asset conversion" where "clients frequently receive bids up to three times higher than if they limited their scope to include only the traditional post-market buyers," CMGI said. Shares rose 2.7% to $1.57.
rose after reporting a 31% rise in fourth-quarter revenue. For the three months ended Sept. 30, the company earned $900,000, or 4 cents a share, on revenue of $11.9 million. A year ago, it lost $300,000, or 1 cents a share, on sales of $9.1 million. "With strong earnings in our North American business, complementing the contribution from the inclusion of our Parker Williams acquisition, this has been a very good year," Envoy said in a release. The shares jumped 19 cents, or 13%, to $1.64.
Other technology stocks trading heavily Tuesday included
, down 2 cents to $12.30;
Sirius Satellite Radio
, down 1 cent to $6.65;
, down 7 cents to $2.44;
, down 5 cents to $26.78;
, up 25 cents to $26.03;
, down 6 cents to $17.41;
, down 25 cents to $24.39;
, down 9 cents to $4.22;
Advanced Micro Devices
, up $1.25 to $29.37;
, down $1.42 to $58.30;
, down 2 cents to $18.41;
, down 51 cents to $31.39; and
, up 84 cents to $72.22.