were among technology's losers Tuesday, falling more than 8% even though the company posted a rise in its second-quarter profit.
The Chinese online gaming-service provider posted net income of $39.3 million, or 28 cents a share, up from the year-ago $30 million, or 21 cents a share. Revenue grew 43% to $72 million. Analysts expected a profit of 27 cents a share on sales of $68.4 million, according to Thomson First Call.
Citigroup subsequently lowered its rating on the stock from hold to sell, and several other analysts lowered estimates for the third quarter. NetEase was recently trading at $17.14, down $1.54.
fared much better, skyrocketing 22% after reporting in-line second-quarter earnings.
The Beijing-based company, which provides wireless entertainment and media to mobile-phone users in China, said its profit rose to $7.6 million, or 21 cents a share, from $6.6 million, or 19 cents a share, a year earlier. Analysts expected earnings of 21 cents a share. Sales rose 64% to $30.1 million from $18.4 million.
''We are very pleased that both our revenue and operating profit reached new records in the second quarter," CEO Yunfan Zhou said in a statement. However, Zhou said the company expects a difficult second half of the year because of policy changes implemented by the telecommunication operators in China. As a result, the company recently slashed its work force by 15%.
For the third quarter, KongZhong anticipates revenue between $23 million and $24 million. For the full year, the company forecast revenue of $97 million to $105 million. Analysts, on average, project revenue of $25.7 million in the September quarter and $105.7 million for the full year. KongZhong added $1.23 to $6.79 in recent trading.
Investors flocked to
after the company said it resolved its stock-options backdating issues, taking a one-time charge of $445,000 for the second quarter.
The company said earlier this month that the actual dates and recorded dates of some of its past stock options grants were different.
"The audit committee concluded that the company did not engage in intentional or fraudulent misconduct in the granting of stock options," Equinix said in a statement Monday. The charge is "not material" to any particular quarter, the company said, so it won't have to restate earlier financial statements.
Equinix also filed its Form 10-Q for the second quarter on Monday. The provider of data center and Internet exchange services recorded a loss of $5.3 million, or 19 cents a share for the quarter, compared to a loss of $3.4 million, or 14 cents a share in the same period last year. The loss was in line with Wall Street's expectation. Sales for the company's second quarter totaled $68.5 million, up from $52.5 million a year ago.
For the third quarter, Equinix anticipates a loss of $6 million on sales between $72 million and $73 million. Analysts expect a loss of 13 cents a share on revenue of $72.2 million. For the full year, Equinix predicted sales of $280 million to $286 million. Analysts, on average, project sales of $282.5 million. The company's shares recently rose $6.98, or 13%, to $57.31.
( TPTH), a maker of cancer detection products, shot up close to 75% on news of a buyout offer.
proposed to acquire TriPath for $9.25 a share in cash, or approximately $350 million. The price represents an 81% premium over TriPath's closing price of $5.12 Monday.
Becton Dickinson, which already owns 6.5% of TriPath, said the proposal is conditioned upon approval by the TriPath board, the prompt negotiation of mutually acceptable definitive agreements, satisfactory completion of due diligence and the obtaining of necessary regulatory approvals. If the deal is accepted, Becton Dickinson anticipates it will close during its fiscal first quarter. TriPath said its board will "thoroughly evaluate" the offer with the assistance of its financial advisors, UBS Securities. TriPath shares added $3.72 to $8.84 in recent trading; Becton Dickinson was off 73 cents to $65.79.
The top tech volume movers Tuesday included
, up 63 cents to $20.72;
, up 14 cents to $18.01;
, adding 34 cents to $15.63;
, up 9 cents to $4.59;
, up 13 cents to $2.30;
, adding 9 cents to $24.53;
, up $2.20 to $66.14;
, tacking on 64 cents to $24.84;
, up 83 cents to $22.07;
, up 29 cents to $15.64 and
Sirius Satellite Radio
, dropping 7 cents to $3.66.