The march of earnings reports spilled over into the after-hours, where investors applied the knee-jerk theory and dragged some high-profile tech stocks deeper into the doldrums.
All the attention tonight was on
warned after the bell of a sharp third-quarter earnings and revenue shortfall, citing "continued global economic challenges, the slowdown in the global telecom market, and the deceleration in corporate IT spending."
Shares of the networking titan were lately tumbling 7% to $16 on
on an avalanche of volume. On
ECN, the shares were also down 7.2% to $15.96.
"The business environment that our segment of the IT industry is facing has never been more challenging," CEO John Chambers said in a prepared statement. "In fact, this may be the fastest any industry our size has ever decelerated, which has required us to make difficult business decisions at an unprecedented speed."
was punished in a similar fashion after the company, which provides equipment for enabling high-speed data communications over local area networks and storage area networks, lowered its fourth-quarter guidance, amid order delays and the economic slowdown. Finisar's shares lately plummeted 15.9% to $9.50 on Instinet.
And the contagion effect grabbed fellow equipment makers
, which lately fell 3.4% to $46.74 on Instinet, and
, which lost 3.4% to $49.75 on Island.
also declined 4.9% to $14.50, while
drooped 9.5% to $8.51, also on Instinet.
The telecom equipment makers weren't the only ones in the red tonight. Chips continued to slide, with
releasing its first quarterly drop in revenue in more than eight years after experiencing a "dramatic" slowdown in sales of chips for communications and data storage.
Shares of the Camarillo, Calif., company, recently slid 8.5% to $22 on Instinet. Vitesse said tonight its second-quarter revenue was $121.8 million, off 26% from the same period last year and coming in at the low end of the company's own reduced forecast.
Vitesse posted pro forma income, excluding amortization and deferred compensation, of $18.8 million, or 10 cents a share, compared with $47.6 million, or 25 cents a share, in the prior quarter. Analysts polled by
Thomson Financial/First Call
lowered their earnings estimate to 10 cents a share after Vitesse slashed its sales forecast for the second quarter to between $120 million and $125 million and halved its per-share profit forecast to 10 cents to 11 cents from 21 cents to 22 cents.
The company also said tonight that near-term visibility at a majority of its customers "continues to be weak," and the company doesn't expect "a reversal in this trend in the current quarter."
Other chip stocks, which led today's weakness in the
Nasdaq, were slammed. Chip giant
was off 2.1% to $25.75 on Instinet, while communication chip supplier
Applied Micro Circuits
slipped 6% to $18.80.
were also weaker.
analyst Dan Niles became the beleaguered sector's
latest naysayer .
Overall, investors sold off other tech stocks, including former high-fliers
, off 3.9% to $15.71 on Instinet, and
, falling 0.6% to $60.40. Mr. Softee plans to report earnings on Wednesday.
Software makers weren't spared, as after-hour players on both trading platforms fled
Singapore's electronics contract manufacturer
was also caught in the downward spiral, losing 9.4% to $17.50 on Instinet.
This information is provided by Instinet, a wholly owned subsidiary of Reutersundefined. For further information, please contact Instinet at www.instinet.com.
Island ECN offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.
explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.