Tech stocks were stuck in the mud Thursday, as investors' glee at the
rate cut earlier this week began to take a back seat to corporate earnings.
was shedding 5.9% after Kaufmann downgraded the stock to sell from hold. The firm, citing increasing competition in the digital media distribution space, lowered its price target to $25 from $33. Shares were dipping $1.89 to $30.37.
Akamai is a component of the Nasdaq 100, which was lower by 1.33 points to 2040.03.
was shedding 11% after the maker of electronic payment software systems missed Wall Street's earnings expectations for the third quarter and disappointed in its full-year outlook.
The company lost $2.7 million, or 7 cents per diluted share, in the quarter, compared to income of $22.5 million, or 59 cents per diluted share, in the comparable 2006 period. Excluding items, the company earned 10 cents a share, vs. 31 cents a share in the year-ago period. It reported revenue of $98.1 million, compared to $84.8 million in the 2006 quarter. Analysts polled by Thomson Financial expected earnings of 28 cents a share on revenue of $97.5 million.
The company said it expected 2007 revenue to be between $390 million and $400 million. It expects non-GAAP earnings per share of between 82 cents and $1.02 a share. Analysts expect earnings of $1.06 a share on revenue of $390.1 million. Shares were off $2.91 to $23.57.
Vasco Data Security
was sinking 8.6% after RBC Capital Markets downgraded the security software maker to underperform, from sector perform. Shares were lower by $3.21 to $34.07.
was off 5.7% after the wireless-equipment maker said it would sell 3.5 million shares for $78.4 million. The company, which will sell the shares for $22.40 apiece, plans to use the proceeds for general corporate purposes, working capital and potential acquisitions. Underwriters CIBC World Markets, Piper Jaffray and RBC Capital Markets have the option to purchase an additional 525,000 shares. Shares were sinking $1.36 to $22.35.
On the winning side,
, which makes switch-based Internet protocol telecommunication systems, jumped 14.5% after JPMorgan initiated coverage of the stock with an overweight rating. Shares were rising $2.04 to $16.12.
Monolithic Power Systems
surged 11.5% after the chipmaker upped its third quarter outlook following the prior bell. Strong demand from the notebook and flat panel TV markets moved the company to raise its revenue guidance to the range between $38 million to $39 million, vs. its earlier range of $33 million to $35 million. Analysts polled by Thomson Financial expect revenue of $34.3 million. Shares were gaining $2.54 to $24.66.