Tuesday's Tech Winners & Losers - TheStreet

Tuesday's Tech Winners & Losers

Merger news bolsters Brightpoint, XM and Sirius.
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Shares of

Brightpoint

(CELL)

were among technology's winners Tuesday, jumping 13% after the mobile-phone distributor agreed to acquire Denmark-based

Dangaard Telecom A/S

.

Brightpoint will issue 30 million shares of its stock and pay $100,000 to Dangaard. "This transaction will join together two of the most prominent players in the wireless handset distribution and logistics industry to create the true global leader," Brightpoint said.

Combined, the two companies would have had pro forma revenue of about $4.6 billion and operating income of $106 million in 2006. The acquisition is expected to close in June or July. Shares of Brightpoint were trading up $1.35 to $11.63.

Sirius Satellite Radio

(SIRI) - Get Report

and

XM Satellite Radio

(XMSR)

each were climbing after the companies announced plans to merge. The deal gives XM shareholders 4.6 Sirius shares for each XM share outstanding. As announced, the transaction is worth $4.57 billion, a 22% premium to Friday's closing prices.

XM shares recently were up $1.54, or 11%, to $15.51, while Sirius shares were adding 26 cents, or 7%, to $3.96. Still, the stocks were trading below the indicated value of the deal because of the possibility of regulatory concerns.

Shares of

SanDisk

(SNDK)

rose modestly after the flash memory supplier announced job cuts and price reductions. SanDisk plans to cut about 250 jobs, or 10% of its workforce. Most of the job cuts will occur in March. The company also plans to reduce salaries in its executive suite. The company's chief executive, Eli Harari, will take a 20% pay cut, while its president and executive vice presidents will see a 15% drop in pay.

Meanwhile, SanDisk said that it is cutting prices by 30% to 40% on a sequential basis in an effort to maintain market share. The company said gross margins likely will remain under "significant pressure" for several quarters. Shares recently were trading at $40.19, up 6 cents.

Vital Images

(VTAL)

rose 5% after the software company posted mixed fourth-quarter results and issued an in-line 2007 guidance. The company's fourth-quarter earnings slipped to $2.3 million, or 15 cents a share, from $2.4 million, or 18 cents a share, a year earlier. Analysts polled by Thomson First Call expected earnings of 12 cents a share. Revenue rose to $20 million from $15.3 million, missing Wall Street's forecast of $20.4 million.

For 2007, Vital Images sees earnings of 61 cents to 70 cents a share and revenue of $90 million to $95 million. Analysts project earnings of 62 cents a share, with revenue of $93.6 million. Shares of Vital Images were adding $1.64 to $33.35.

Shares of

Intermec

(IN)

fell 3% after the maker of inventory tracking tools posted disappointing fourth-quarter results. The company reported earnings from continuing operations of $5.2 million, or 9 cents a share, on revenue of $218.8 million. Analysts predicted earnings of 11 cents a share and revenue of $219 million. During the year-earlier period, the company earned $12.1 million, or 19 cents a share, on revenue of $241.7 million.

For the first quarter, Intermec projects earnings of 1 cent a share, give or take 4 cents. The company sees revenue of $177 million to $197 million. Analysts, on average, expect earnings of 11 cents a share and revenue of $205.1 million. Shares were trading down 81 cents to $23.93.

SI International

(SINT) - Get Report

traded actively after the information technology company posted mixed fourth-quarter results and forecast first-quarter earnings below expectations. The company earned $6 million, or 45 cents a share, in the fourth quarter, matching analysts' average estimate. Revenue totaled $115.6 million, below Wall Street's target of $123 million. During the year-earlier period, the company earned $5.1 million, or 43 cents a share, on revenue of $116.4 million.

Looking ahead, SI International forecast first-quarter earnings of 36 cents to 38 cents a share, compared with analysts' forecast of 39 cents. The company sees first-quarter revenue of $110 million to $117 million, below the $123.1 million that Wall Street projects. Shares recently were up 4 cents to $26.04.

Other technology movers included

Microsoft

(MSFT) - Get Report

, down 18 cents to $28.56;

Intel

(INTC) - Get Report

, down 29 cents to $20.94;

Sun Microsystems

(SUNW) - Get Report

, up 6 cents to $6.35;

Level 3 Communications

(LVLT)

, up 7 cents to $6.51;

Cisco Systems

(CSCO) - Get Report

, down 15 cents to $27.37; and

Qualcomm

(QCOM) - Get Report

, down 33 cents to $42.18.