Updated from 11:19 a.m. EDT
Tech stocks were flat Thursday, weighed down by a number of earnings and guidance losers.
slid 11.5% after the chip designer slashed second-quarter guidance and said that it would cut some 900 jobs. The company now sees a loss of three cents to break-even during the second quarter. Previously, the company said that it would post earnings of 3 cents a share to break-even. It now sees revenue of $650 million to $670 million, down significantly from an earlier view of $715 million to $745 million. Analysts polled by Thomson Financial project earnings of 2 cents a share on revenue of $732.4 million.
The job cuts, which represent about 13% of the company's non-production workforce, are aimed at reducing operating expenses. "The steps we are taking today are designed to accelerate the synergies from the merger and further improve our cost structure," the company said. "As a result, we will be better positioned to increase operating income and create shareholder value." Shares closed down 99 cents to $7.65.
slumped 11.2% after the Web-development services company cut its second-quarter guidance. The company now sees adjusted earnings of 38 cents to 39 cents a share on revenue of about $78 million. Previously, the company said that it would earn 46 cents a share on revenue of $85 million. Analysts project earnings of 46 cents a share on revenue of $85.3 million.
"Several factors contributed to what historically has been a seasonally soft quarter for the company," Digital River said. "Some of the incremental business we were expecting from several key clients continued to unfold slower than anticipated." Shares closed down $5.67 to $45.
slid 3.4% after the maker of chip equipment warned that second-quarter results would be lower than expected. The company said that results would come in at the low end of its previous guidance, which was issued during the company's midquarter updated on May 31. The company expected earnings of 45 cents to 48 cents a share on revenue of $410 million to $420 million. Analysts project earnings of 44 cents a share on revenue of $415.2 million.
In addition to cutting estimates, "the company anticipates weakening semiconductor-equipment industry demand and as a result is taking pre-emptive actions, which will reduce expenses in the second half of 2007," Novellus said. "These expense control initiatives include a reduction of executive salaries for the remainder of 2007 and company shutdowns in both the third and fourth quarters." Shares closed down $1.01 to $28.89.
Smart Modular Technologies
fell 9.8% after the chipmaker posted in-line third-quarter earnings but issued fourth-quarter guidance that disappointed investors. The company earned $14.2 million, or 22 cents a share, on revenue of $186.5 million. Analysts expected earnings of 22 cents a share.
Looking ahead, Smart Modular sees fourth-quarter earnings of 23 cents to 24 cents a share on revenue of $200 million to $220 million. Analysts project earnings of 24 cents a share on revenue of $241 million. Shares closed down $1.50 to $13.77.
Crown Castle International
rose 2.4% after the wireless tower giant reaffirmed its second-quarter outlook. The company continues to see a loss of 10 cents to 23 cents a share. Analysts, meanwhile, project a loss of 21 cents a share. Shares closed up 83 cents to $35.83 on volume of more than 2.4 million shares.
As for the broader technology sector, the Nasdaq 100 was down about a point at 1931.67.