Updated from 12:28 p.m. EDT
Technology stocks moved modestly higher Thursday, but some of the biggest movers were hit hard by earnings warnings and weaker-than-expected reports.
( AVCI) plunged 28.7% after the network-equipment company said that it would halt its core router development and focus on a new product initiative. The company said it would turn its focus to its new Soapstone Networks product and make its final shipments of router products by the end of the year.
"While we were successful in bringing the company to profitability in 2006 and continued to do so in the first quarter of 2007, we recognize that the routing market is under tremendous pressure from alternative technologies, such as Ethernet switching, and we do not believe our focus on core routers and our position as the No. 3 supplier in this market to be a sustainable growth business for the company." Avici said.
The company also posted adjusted earnings of $6.6 million, or 46 cents a share, on revenue of $20.5 million. During the year-earlier quarter, it earned $2 million, or 15 cents a share, on revenue of $20.9 million. Shares were down $3.89 to $9.65.
( SPSN) slumped 19.9% after the maker of flash memory posted disappointing first-quarter results. For the quarter ended April 1, the company reported a loss of $75.5 million, or 56 cents a share, on revenue of $627.8 million. Analysts polled by Thomson Financial expected a smaller loss of 24 cents a share on revenue of $678.3 million.
In an effort to reduce expenses, the company said it would sell non-performing assets. The company hopes to cut expenses by $50 million to $100 million in 2007.
Looking ahead, Spansion said it would not provide second-quarter guidance because of an "intensely competitive pricing environment." Shares were down $2.49 to $10.
fell sharply after the company, which makes power supply products for computers, networks and other electronics, warned it would post a first-quarter loss on lower-than-expected revenue. The company sees a loss of 14 cents a share on revenue of about $124 million. Analysts project a profit of a penny a share on revenue of $129.6 million. "The revenue shortfall comes predominantly from North American business which did not achieve anticipated forecasts," the company said. "North America experienced a softening of sales to distributors and certain key customers, who have taken actions to make their inventory positions significantly leaner." Shares were down 71 cents, or 13%, to $4.77.
tumbled 12.3% after the maker of magnetic and optical data-storage products posted first-quarter results that fell below expectations. The company earned $15.7 million, or 44 cents a share, on revenue of $421.9 million. Analysts expected earnings of 61 cents a share on revenue of $448.3 million. During the year-earlier quarter, the company earned $19.4 million, or 55 cents a share, on revenue of $335.2 million. Imation said results were hurt by industry-wide price erosion in the flash memory market and by pricing pressure on LTO tape media. Shares were down $5.09 to $36.20.
On the winning side,
rose 7.9% after the chipmaker posted better-than-expected first-quarter results. The company reported adjusted earnings of $40.2 million, or 29 cents a share, on revenue of $167.7 million. Analysts expected earnings of 28 cents a share on revenue of $164.7 million. During the year-earlier quarter, the company earned $41.3 million, or 28 cents a share, on revenue of $178.9 million.
Looking ahead, Intersil sees adjusted second-quarter earnings of 30 cents to 31 cents a share, in line with the 30 cents a share that analysts project. Shares were up $2.22 to $30.37.
As for the broader technology sector, the Nasdaq 100 was virtually flat after trading up about 3 points to about 1835 earlier in the day.
Other technology movers included
, up $1.59 to $37.63;
, up 46 cents to $21.81;
, up 9 cents to $28.69;
Sirius Satellite Radio
, down 4 cents to $2.98;
, down 5 cents to $5.89;
, down 19 cents to $26.68; and
, up 3 cents to $18.76.