were among the tech sector's losers Tuesday, sinking 14% after the technology consultant announced the resignation of its CEO amid a probe into stock-option grants.
The company said that Jerry Greenberg, who co-founded Sapient in 1990, would resign as CEO and leave the company. Greenberg will be replaced by Alan Herrick, an executive vice president who joined Sapient in 1995. Susan Cooke, meanwhile, resigned her position as interim chief financial officer. She will be replaced by Joseph Tibbetts, who most recently served as CFO of
Sapient, which first announced its stock-option investigation in August, said it has identified option grants, mostly from 1997 to 2001, that had incorrect measurement dates. The company plans to record charges for compensation expense related to the past grants. As a result of the ongoing investigation, Sapient does not expect to release third-quarter results on its scheduled date of Nov. 7. Shares were down 82 cents to $5.
fell 6% after the telecom-equipment maker posted mixed third-quarter results and gave a fourth-quarter forecast below estimates. For the third quarter, the company earned $24.2 million, or 33 cents a share, on revenue of $132.7 million. Excluding items, earnings were $26 million, or 35 cents a share. Analysts expected earnings of 32 cents a share on revenue of $133.9 million. During the year-earlier quarter, Adtran earned $33 million, or 42 cents a share, on revenue of $149.2 million.
On the company's conference call, Adtran forecast fourth-quarter earnings of 29 cents to 30 cents a share and revenue of $125 million to $130 million. Analysts predict earnings of 37 cents a share and a top line of $141 million. Shares were trading down $1.65 to $23.57.
( BWNG) soared 15% after the communications company agreed to be acquired by
Level 3 Communications
for about $1.4 billion in cash and stock. The deal values Broadwing at $15.31 a share, a premium of 15% over Monday's closing price of $13.28. Broadwing shareholders will receive $8.18 a share in cash and 1.34 shares of Level 3 for each share they hold. Shares of Broadwing were trading up $1.96 to $15.24, while shares of Level 3 added 22 cents, or 4%, to $5.54.
fell 5% after the data-storage company posted better-than-expected third-quarter results but laid out plans to cut 4% of its workforce. The company earned $283.7 million, or 13 cents a share, on revenue of $2.82 billion. Analysts expected a profit of 12 cents a share on revenue of $2.67 billion. A year earlier, EMC earned $422 million, or 18 cents a share, on revenue of $2.37 billion. Looking ahead, EMC sees fourth-quarter adjusted earnings of 16 cents a share, in line with analysts' mean estimate.
As for the job cuts, which number about 1,250, EMC said that it would improve efficiencies across its businesses, many of which have been acquired during the past three years. Shares were trading down 66 cents to $12.17.
fell 3% after the contract electronics manufacturer agreed to acquire
( PMTR) for about $300 million. The deal, which includes the assumption of debt, values Pemstar at $4.63 a share, a premium of 27% over Monday's closing price of $3.65. The deal is expected to close during the first quarter of 2007. Shares of Benchmark were trading down $1.06 to $27.87; shares of Pemstar jumped 66 cents, or 18%, to $4.31.
Other technology movers included
( LU), down 1 cent to $2.35;
, down 71 cents to $20.90;
, down 13 cents to $5.09;
, down 16 cents to $28.29;
, down 27 cents to $24.32;
, down 47 cents to $18.51;
, down $1.32 to $29.50;
, down 4 cents to $4.08; and
, down $1.01 to $38.81.