Tech Stocks in Motion

Shares of Infocrossing ( IFOX) were among technology's losers Monday, falling 26% after the company cut its second-quarter outlook and withdrew its 2005 guidance.

The technology services company now expects second-quarter earnings of $200,000, or 1 cent a share, on sales of $35.2 million. Previously, the company expected earnings of $2.4 million, or 11 cents a share, on sales of $37.5 million. Analysts polled by Thomson First Call had been expecting earnings of 11 cents a share on sales of $37.6 million. Infocrossing blamed the reduced second-quarter guidance on a shortfall of about $2.3 million in projected sales, $1.8 million of which was attributed to lower-than-anticipated usage-based billings and delays in the start of new contracts. In addition, the company added $1 million to its allowance for doubtful accounts for incremental usage-billing charges that were billed to a customer during prior periods. "We have established this allowance while we are negotiating vigorously to resolve this matter," the company said.

As for the withdrawal of its 2005 guidance, the company said that the uncertainty of new customer contracts has made it difficult to predict its results for the remainder of 2005. The company had been expecting earnings of $18.2 million to $18.8 million, or 72 cents to 74 cents a share, on sales of $167 million to $170 million. Shares were trading down $3.32 to $9.33.

Helix Technology ( HELX) rose 14% after the company agreed to be acquired by Brooks Automation ( BRKS) for $454 million in stock. Helix shareholders will receive 1.11 shares of Brooks for each share of Helix they hold. The deal is expected to be accretive to earnings within the first year. After the deal closes -- during the fourth quarter of 2005 -- shareholders of Brooks will own 61% of the combined company, with Helix shareholders owning the rest. Shares were trading up $2 to $15.89.

Shares of DayStar Technologies ( DSTI) rose 20% after the company said that China-based Micro Energy Group signed a purchase agreement for DayStar's TerraFoil-SP solar cells. The agreement calls for DayStar to deliver up to 500 kilowatts of TerraFoil cells to Micro Energy. Monthly deliveries begin later in 2005, DayStar said, with escalating volumes being added through the end of 2006. Prices will be based on a variable market-competitive pricing mechanism; deliveries will be based on DayStar's ramp-up of its production capacity. TerraFoil-SP solar cells are used in specialty consumer electronic products and smaller power modules. Shares were trading up $2.56 to $15.40.

Komag ( KOMG) rose 5% after the company lifted its second-quarter sales forecast. The disk-drive component maker now expects sales of about $172 million, up from previous guidance of $161 million to $168 million. Net margin is now expected to be around 16%, up slightly from previous guidance of 15%. Analysts are expecting earnings of 77 cents a share on sales of $164.6 million. Komag said that strong shipments to its disk drive customers led to the upward revision. Shares were trading up $1.63 to $32.87.

Shares of Alliance Semiconductor ( ALSC) moved higher Monday after the company announced the termination of its chief financial officer. Alliance fired Jeff Parsons after he "admitted to conduct that the company believes violated his contractual and other obligations to the company regarding the disclosure of confidential information to a third party," the company said. Until a permanent replacement is found, N. Damodar Reddy, the company's chief executive, will serve as interim CFO. Shares were trading up 14 cents to $3.

Other technology movers included Sirius Satellite Radio ( SIRI), up 19 cents to $7.17; Microsoft ( MSFT), up 20 cents to $25.29; Intel ( INTC), up 14 cents to $27.42; Cisco Systems ( CSCO), up 6 cents to $19.37; Sun Microsystems ( SUNW), up 2 cents to $3.65; Oracle ( ORCL), up 9 cents to $13.65; Applied Materials ( AMAT), up 42 cents to $17.08; and Lucent Technologies ( LU), up 3 cents to $3.01.

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