Today's Tech Winners and Losers

NetIQ surges after agreeing to be bought out by a private equity-owned company.
Author:
Publish date:

Shares of

Business Objects

(BOBJ)

were among technology's losers Thursday, sliding 12% after the software company posted mixed first-quarter results and warned that second-quarter earnings would be lower than Wall Street's forecast.

The company earned $12.3 million, or 13 cents a share, on revenue of $278.3 million. Excluding items, the company earned $31.1 million, or 33 cents a share. Analysts surveyed by Thomson First Call expected earnings of 30 cents a share on revenue of $281.2 million. A year earlier, the company earned $15 million, or 16 cents a share, on revenue of $248.8 million. Excluding items, the company earned $22.1 million, or 24 cents a share, during the year-earlier quarter.

Business Objects sees second-quarter earnings of 30 cents to 33 cents a share, excluding items. The company predicts revenue of $295 million to $300 million. Analysts project earnings of 37 cents a share and revenue of $297.9 million. For the full year, the company now sees earnings, excluding items, of $1.55 to $1.65 a share, up from an earlier view of $1.45 to $1.55 a share. The company raised its revenue view to $1.23 billion to $1.25 billion from an earlier forecast of $1.21 billion to $1.23 billion. Analysts expect full-year earnings of $1.52 a share, with revenue of $1.22 billion. Shares were trading down $4.38 to $33.26.

NetIQ

(NTIQ)

jumped 11% after the software company agreed to be bought out for about $495 million in cash. The company will be aquired by

AttachmateWRQ

, a software maker owned by a consortium of private equity firms. NetIQ holders will receive $12.20 a share, a 14% premium over Wednesday's closing price of $10.72. The acquisition is expected to close during the next 90 days.

Separately, NetIQ posted fiscal third-quarter earnings that topped forecasts. The company reported a loss of $3.9 million, or 10 cents a share, on revenue of $46 million. Excluding items, the company posted a profit of $162,000, or less than a penny a share. Analysts expected a loss of 6 cents a share, before items, on revenue of $43.5 million. During the year-earlier period the company recorded an adjusted loss of $669,000, or 1 cent a share, on revenue of $51.1 million. Shares were trading up $1.24 to $11.96.

Shares of

Orckit Communications

(ORCT)

slid 16% after the telecom-equipment provider posted better-than-expected first-quarter earnings but slashed its 2006 guidance. For the first quarter, the company earned $5.8 million, or 34 cents a share, on revenue of $25 million. Analysts expected earnings of 21 cents a share and revenue of $24.1 million. Last year, the company reported a first-quarter profit of $3.1 million, or 18 cents a share, on revenue of $20.6 million.

Orckit, citing a slower-than-expected rate of expansion for a major customer, now sees fiscal-year earnings of $11.5 million to $20 million, or 68 cents to $1.20 a share. Previously, the company projected earnings of about $25.8 million, or $1.50 a share. Orckit cut its revenue forecast to a range of $80 million to $100 million from about $125 million. Analysts project earnings of $1.51 a share and revenue of $125.2 million. Shares were down $2.99 to $15.98.

Amkor Technology

(AMKR) - Get Report

vaulted 18% after the contract semiconductor-assembly company turned in first-quarter results that were well above expectations and forecast a stronger-than-anticipated second quarter. The company earned $35.8 million, or 20 cents a share, on revenue of $645.1 million. Analysts expected earnings of 12 cents a share and revenue of $618.7 million. Last year, Amkor reported a first-quarter loss of $119.1 million, or 68 cents a share, on revenue of $417.5 million. The results in the year-ago period included a provision for legal settlements of $50 million, or 28 cents a share.

Looking ahead, Amkor sees second-quarter earnings of 24 cents to 28 cents a share and sequential revenue growth of 2% to 4%, or sales of $658 million to $670.9 million. Analysts project earnings of 16 cents a share and revenue of $640.4 million. Shares recently had gained $1.99 to $13.04.

Shares of

Mentor Graphics

(MENT)

jumped 16% after the software company posted first-quarter results that easily topped expectations. The company reported a loss of $5.9 million, or 7 cents a share, on revenue of $176.3 million. Excluding items, the company earned 8 cents a share. Analysts expected breakeven earnings, before items, and revenue of $170 million. During the year-earlier period, the company posted a loss of $4.4 million, or 6 cents a share, on revenue of $164.3 million.

For the second quarter, Mentor sees earnings, excluding items, of 6 cents a share, above analysts' target of 3 cents. The company predicts revenue of about $177 million, compared with Wall Street's projection of $174.4 million. For all of 2006, the company raised its earnings forecast to about 65 cents a share, up from an earlier view of about 55 cents a share. The company now predicts revenue of about $762 million, up from an earlier forecast of about $755 million. Analysts project full-year earnings of 56 cents a share and revenue of $757 million. Shares were up $1.81 to $13.16.

Other technology movers included

Oracle

(ORCL) - Get Report

, up 34 cents to $15.06;

Intel

(INTC) - Get Report

, up 41 cents to $19.90;

Vitesse Semiconductor

(VTSS)

, down 57 cents to $1.94;

Lucent Technologies

(LU)

, down 10 cents to $2.77;

Microsoft

(MSFT) - Get Report

, up 48 cents to $27.58;

JDSU

(JDSU)

, up 2 cents to $3.60;

Cisco Systems

(CSCO) - Get Report

, up 46 cents to $21.19;

Sirius Satellite Radio

(SIRI) - Get Report

, down 3 cents to $4.78;

Dell

(DELL) - Get Report

, down 12 cents to $26.10; and

Sun Microsystems

(SUNW) - Get Report

, down 2 cents to $5.