Tuesday's Tech Winners & Losers - TheStreet

Tuesday's Tech Winners & Losers

Skyworks takes flight, while Marvell slides.
Author:
Publish date:

Shares of

Skyworks

(SWKS) - Get Report

were among technology's biggest winners Tuesday, soaring 39% after the wireless-chip and component maker announced plans to exit its baseband business.

"Today marks a new beginning for Skyworks as we become a far more profitable and streamlined company," Skyworks said late Monday. "We are focusing exclusively on our high growth and profitable analog and RF core business where Skyworks possesses a clear competitive advantage." As part of the move, the company plans to cut 425 jobs, or 10% of its workforce.

Excluding the baseband operations, Skyworks forecast fiscal 2007 earnings of 55 cents to 60 cents a share and revenue of $820 million to $840 million. Analysts polled by Thomson First Call project earnings of 29 cents a share on revenue of $839.6 million. For the first quarter, the company sees adjusted earnings of 12 cents to 14 cents a share, well above the 8 cents a share that analysts project. Shares were trading up $1.95 to $7.01.

Marvell Technology

(MRVL) - Get Report

shares tumbled 14% after the chipmaker warned that third-quarter revenue would be lower than expected and said that it would restate past results because of discrepancies in its historical stock-option grants. The company estimates third-quarter revenue fell 10% from second-quarter revenue of $574 million. Analysts project revenue of $582.4 million, or sequential growth of about 1%.

As for the company's historical stock-option practices, Marvell said it would likely need to restate past results to record additional charges related to past option grants. Marvell plans to file restated financials as soon as possible after a special committee completes its review. Shares were trading down $2.70 to $16.39.

Shares of

Brocade Communications

(BRCD)

slid 6% after the storage-area networks company received a request from the Federal Trade Commission for more information about the pending acquisition of

McData

(MCDTA)

.

Brocade said it plans to respond promptly to the request for additional information and documentary material. Brocade still expects the acquisition to close as early as its fiscal first quarter, which ends Jan. 27. Shares of Brocade were trading down 42 cents to $7.34, while shares of McData fell 26 cents, or 5%, to $5.12.

CryptoLogic

(CRYP)

continued to slide Tuesday, a day after the company's shares tumbled following the passage of a new gambling law that could hurt its business. Over the weekend, Congress passed the Unlawful Internet Gambling Enforcement Act of 2006, which bars financial-transaction processing connected with the U.S. online-gambling market. In light of the Act, CryptoLogic said that its WagerLogic licensing unit would no longer accept wagers from U.S.-based players. Shares, which fell more than 18% on Monday, were shedding another $1.18, or 7%, to $16.80.

Other technology movers included

Intel

(INTC) - Get Report

, down 15 cents to $20.29;

Sun Microsystems

(SUNW) - Get Report

, down 2 cents to $4.98;

Level 3 Communications

(LVLT)

, down 11 cents to $5.06;

Microsoft

(MSFT) - Get Report

, down 8 cents to $27.28;

Broadcom

(BRCM)

, down $1.72 to $29.13;

Cisco Systems

(CSCO) - Get Report

, up 8 cents to $23.06;

Oracle

(ORCL) - Get Report

, down 5 cents to $17.61; and

Apple Computer

(AAPL) - Get Report

, down 86 cents to $74.