The most actively traded stocks sank after hours Wednesday as a number of tech names issued disappointing earnings and guidance.
One of the most heavily traded laggards was
slashed its outlook
for the quarter ending June 30 and said it will restructure by cutting 13% of its nonproduction workforce, among other things. The Milpitas, Calif., chipmaker now expects a non-GAAP bottom line of a 3-cent loss to break-even per share vs. the prior break-even to 3-cent per-share earnings. Analysts polled by Thomson Financial are looking for a 2-cent profit. Shares slid 5.6% to $8.16.
shares plunged 13.6% to $43.80 after the Minnesota e-commerce business-services firm posted preliminary non-GAAP income of 38 cents to 39 cents a share for the second quarter -- at least 7 cents below Wall Street expectations. Revenue, at about $78 million, should also miss the mean target.
Meanwhile, semiconductor company
Smart Modular Technologies
( SMOD) came in well below fiscal third-quarter revenue estimates, and application-software firm
traded lower despite
for the quarter ended May 31.
Smart Modular was down 78 cents, or 5.1%, to $14.49; Red Hat lost 1.7% to $23.79 in recent late trading.
Away from the tech sector, payroll-services firm
missed on fourth-quarter revenue with $487.3 million, after which shares slipped 2.3%.
, an interior-furnishings company, guided at least 4 cents below the mean Street target for the fiscal first quarter, projecting a per-share profit of 47 cents to 53 cents. Shares shed 5.6% to $33.
On the flipside,
( DISK), gained 5.5% on word of a sweetened merger deal with BTP Acquisition, a group lead by film financier and producer David Bergstein. The Chatsworth, Calif.-based company, which acquires and distributes content for release on DVD, said shareholders will now retain between 5% and 9% of their shares in the post-transaction company while still receiving the previously announced per-share price of $4.40. Shares were lately trading at that same amount.
was also higher in heavy trading after the San Jose, Calif., semiconductor firm swung to a first-quarter profit of $28.9 million, or 6 cents a share, compared with a year-ago loss of 25 cents a share. The company says it is now a current filer, having been previously delayed due to a stock-option-grant investigation. Shares were up 3.2% to $5.89.