The Night Watch: Solectron's Good Earnings Usher in a Better Tech Mood After Hours - TheStreet

(Updated from 7:29 p.m. EST)

So far, so good: In the first nighttime session of the week, investors were spared the onslaught of high-profile profit warnings that have become commonplace in recent days.

As a result, post-close patrons focused on some old technology favorites, many of which have given them good reason to sweat over the past few weeks. And they turned their attention to companies with -- believe it or not --

good

earnings news tonight.

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After the closing bell,

Solectron

( SLR), a provider of electronics manufacturing and supply-chain management services, posted stronger-than-expected results for the quarter ended Dec. 1, thanks to strong demand for networking and telecommunications products.

Shares of Solectron advanced 6.7%, to $28.50, on

Instinet

.

Solectron reported earnings of 31 cents per share, topping the

First Call/Thomson Financial

forecast of 28 cents per share earnings and beating the year-ago 19-cents-per-share result. Sales for the quarter rose to $5.7 billion, from $2.8 billion in the year-earlier period.

For the upcoming quarter, Solectron expects second-quarter sales of $5.4 billion to $5.7 billion and profits of 29 cents to 30 cents per share. For fiscal 2001, the company expects sales of more than $23 billion and income of $1.22 to $1.25 per share. (

TheStreet.com

discussed

Solectron's earnings in a separate story.)

In other earnings news this evening,

Electro Scientific Industries

( ETYS), which provides wireless telecommunications equipment, announced profits of $1 per share for the quarter ended Dec. 2, beating Wall Street's forecast of 87 cents per share and improving upon the year ago 26-cents-per-share result.

Tonight's top gainer on Instinet, Electro Scientific popped 20%, to $26.55, on the platform.

Beyond the companies posting financial results, investors spread their wealth to beaten-down technology stocks. Shares of

eToys

( ETYS), which dropped steeply today after Friday's news that third-quarter financial results would fall short of previous expectations, recovered 11.1%, to 31 cents, on Island. eToys closed the regular session down 72.7%, to 28 cents.

eToys said that it had hired

Goldman Sachs

to explore alternatives, including a merger, asset sale or other restructuring.

Other fallen soldiers that stood up in after-hours action include

Microsoft

(MSFT) - Get Report

, which issued a profit warning for the first time in 11 years last week. Shares of Mister Softie edged up 0.4%, to $48, on Instinet and climbed 0.7%, to $48.13, on Island. In the regular session, Microsoft fell 2.8%, to $47.81.

Intel

(INTC) - Get Report

, which warned investors earlier this month that fourth-quarter revenue would be lower than expected, tacked on 0.2%, to $33.31, on Instinet and added 0.6%, to $33.44, on Island. The semiconductor stock closed the daytime session up 2.5%, to $33.25.

Finally,

Cisco Systems

(CSCO) - Get Report

, which touched a fresh 52-week low of $42.31 in daytime trading, recouped 1.2%, advancing to $43.44 on Island and Instinet. The networking giant closed the regular session down 10.9%, to $42.94.

Looking ahead to tomorrow, the

S&P 500 futures on

Globex

were lately up 0.5 to 1347, about eight points above

fair value and indicating a flattish open for Tuesday's start. The

Nasdaq 100 Securities

were recently ahead 3.5 to 2612, about 29 points below fair value and showing upward pressure for the Nasdaq's open tomorrow.

This information is provided by Instinet, a wholly owned subsidiary of Reuters( RTRSY). For further information, please contact Instinet at www.instinet.com.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EST.

Confused?

TheStreet.com

explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.