Shares of Alvarion ( ALVR) were among technology's losers Wednesday, falling 15% after the wireless-equipment maker posted second-quarter results and warned that third-quarter earnings and sales would be below expectations. The company posted a pro forma loss of $2.5 million, or 4 cents a share, on sales of $47 million. The results were in line with the company's recently reduced earnings and sales guidance, which called for a loss of 4 cents to 6 cents a share on sales of $46 million to $47 million. Analysts polled by Thomson First Call were expecting a loss of 5 cents a share on sales of $46.3 million. A year ago the company posted pro forma earnings of $3.2 million, or 5 cents a share, on sales of $48.8 million. Looking ahead, Alvarion forecast a third-quarter pro forma loss of 4 cents to 8 cents a share on sales of $43 million to $48 million. Analysts had been expecting a profit of 1 cent a share on sales of $54.2 million. Shares were trading down $1.34 to $8.14. Shares of Overstock.com ( OSTK) fell despite the company reporting a narrower-than-expected second quarter loss. The online retailer lost $2.6 million, or 13 cents a share, in the second quarter, compared with $2.4 million, or 13 cents a share, a year ago. Analysts were expecting a loss of 22 cents a share in the latest quarter. Revenue surged 72% from a year ago to $150.6 million, also beating estimates. Shareholders focused on a prediction the company's expenses would rise in coming quarters and offered the stock down 4% to $42.01 in recent trading. BMC Software ( BMC) rose 8% after the company posted better-than-expected second-quarter earnings and lifted its fiscal 2006 earnings guidance. The software company reported a loss of $41.1 million, or 19 cents a share, on sales of $348.3 million. Excluding items, however, the company would have earned $43.9 million, or 20 cents a share. Analysts were expecting earnings of 13 cents a share on sales of $334.5 million. A year ago the company posted earnings of $10.7 million, or 5 cents a share, on sales of $326 million.
Looking ahead, BMC Software forecast second-quarter pro forma earnings of 20 cents to 25 cents a share, in line with expectations, on sales of $355 million to $370 million, which compares to the $360 million that analysts had been expecting. For fiscal 2006, the company now expects pro forma earnings of 90 cents to 96 cents a share, up from previous guidance of 86 cents to 92 cents a share. Sales are now expected to be between $1.49 billion and $1.52 billion, up from previous guidance of $1.48 billion to $1.5 billion. Analysts had been expecting earnings of 86 cents a share on sales of $1.48 billion. Shares were trading up $1.59 to $20.41. Shares of Analog Devices ( ADI) fell 5% after the chip maker previewed third-quarter results that were weaker than expected. The company expects to report earnings of 31 cents a share, which is at the low end of its previous guidance, on sales of $580 million to $585 million, which is down 3% to 4% on a sequential basis. In May the company said it would earn 31 cents to 33 cents a share and post sequential growth that would be flat to up 3%. Analysts had been expecting earnings of 33 cents a share on sales of $617.2 million. Analog Devices blamed the sales shortfall on a $23 million sequential decline in sales of GSM/GPRS base band chipsets to wireless handset customers in Asia. Shares were trading down $1.89 to $38.83. Overland Storage ( OVRL) fell 19% after the company said that Hewlett-Packard ( HPQ) would not buy its next-generation tape automation product line. Overland expects H-P to start purchasing the first product of the new line from an alternate supplier during calendar 2006. "Although H-P will continue to purchase the tape automation products currently supplied by Overland for some time, the new product will eventually replace the majority of those purchases," Overland said. Even though Overland will have a lower sales base, it said, the company expects its gross margin percentage to increase significantly as it concentrates on branded sales. Finally, the company said that it can't predict how quickly the transition will take place, but it believes the impact to sales will be minimal during its current fiscal year, which ends June 30, 2006. Shares were trading down $1.85 to $7.80.
Shares of Tech Data ( TECD) fell 10% after the computer products distributor cut its second-quarter outlook. The company now expects pro forma earnings of $12.5 million to $16.5 million, or 21 cents to 28 cents a share. Previously, the company expected earnings of $24 million to $27 million, or 40 cents to 45 cents a share. Sales, meanwhile, are expected to be between $4.8 billion and $4.82 billion, which is at the high end of its previous range of $4.7 billion to $4.85 billion. Analysts had been expecting earnings of 43 cents a share on sales of $4.77 billion. "While our Americas region continues to perform well, challenges in our European operations have impacted our overall earnings expectations for the quarter," the company said. Shares were trading down $3.85 to $35.23. Other technology movers included Microsoft ( MSFT), up 49 cents to $27.30; Sirius Satellite Radio ( SIRI), up 6 cents to $6.81; Cisco Systems ( CSCO), up 1 cent to $19.50; Sun Microsystems ( SUNW), down 2 cents to $3.82; Brocade Communications Systems ( BRCDE), down 63 cents to $3.86; Intel ( INTC), up 14 cents to $27.62; Oracle ( ORCL), down 17 cents to $13.41; Nortel Networks ( NT), up 5 cents to $2.69; and Lucent Technologies ( LU), up 1 cent to $2.90.