were among technology's winners Wednesday, surging 21% after the licensing company said the U.S. District Court for the Northern District of California conditionally stayed the last stage of its patent litigation against
The court cited two reasons for the stay. One is the potential for a resolution of the case once the Federal Trade Commission sets royalty rates on SDRAM and DDR SDRAM, and the second was to give South Korea's Hynix 90 days to try to establish how any FTC findings apply to this phase of the case. The case was originally filed by Hynix against Rambus in August 2000; Hynix sought declaratory judgments that certain Rambus patents were invalid and hadn't been infringed. Shares of Rambus recently were trading up $1.96 to $13.17.
Internet Security Systems
rose 6% after the software company agreed to be acquired by
for $28 a share in cash. The offer, valued at about $1.3 billion, represents an 8% premium over Internet Security's Tuesday closing price of $26 a share.
"This acquisition will help IBM to provide companies with access to trained experts and leading-edge processes and technology to evaluate and protect against threats and enforce security policies," IBM said in a statement. The deal is expected to close during the fourth quarter. Shares of Internet Security Systems recently were up $1.65 to $27.65.
jumped 19% after the computer company received an unsolicited $450 million bid for its retail operations. The offer was made by John Hui, founder of eMachines, which Gateway acquired in early 2004.
"I believe strongly in the Gateway and eMacines brands. But I also believe that in order to compete effectively, Gateway must separate its retail operations from its other businesses and make other changes to improve its margins," Mr. Hui said in a press release. "My proposal is aimed at accomplishing this separation in a quick and efficient manner to provide value to Gateway's shareholders." Hui also said that, if Gateway would prefer, he would be willing to buy the entire compay.
Gateway issued its own press release acknowledging Hui's interest and said that it would review the offer. Goldman Sachs is serving as the company's financial adviser. Shares were trading up 33 cents to $2.05.
Applied Signal Technology
fell 8% after the maker of digital-signal processing equipment posted third-quarter earnings that missed estimates. For the period ended July 28, the company earned $924,000, or 8 cents a share, on revenue of $39.5 million. Analysts polled by Thomson First Call expected earnings of 18 cents a share, with revenue of $45.5 million. During the year-earlier period, the company earned $1.8 million, 15 cents a share, on revenue of $36.3 million. Shares were trading down $1.32 to $14.31.
tumbled 18% after the electronics-manufacturing services company posted lower fourth-quarter sales. For the quarter ended July 1, the company earned $7.1 million, or 71 cents a share, up from $2.8 million, or 28 cents a share, a year earlier. The results were boosted, however, by a one-time tax benefit of $5 million, or 50 cents a share. Revenue slid to $52.5 million from $53.2 million.
For the first quarter, Key Tronic sees earnings of 12 cents to 16 cents a share, with revenue of $50 million to $53 million. Shares were trading down $1.26 to $5.55.
sank 13% after the communications-equipment maker said that it agreed to sell $7 million of 8% convertible notes to private investors. The notes are convertible into 5.6 million shares at $1.24 a share. The company also issued warrants to buy 2.8 million shares of stock, which are exercisable at $1.36 a share. Tut expects to close the transaction by Aug. 24.
"We analyzed the timing and structure of a number of strategic financing alternatives," the company said. "This transaction strengthens our balance sheet and provides Tut Systems the working capital to continue to expand our market leadership in our core markets." Shares were trading down 17 cents to $1.17.
Other technology movers included
, up 14 cents to $18.48;
, up 13 cents to $4.76;
, up 1 cent to $25.63;
, down 9 cents to $15.39;
, up 21 cents to $15.80;
, up 4 cents to $21.28;
Sirius Satellite Radio
, down 3 cents to $4;
, up 86 cents to $68.48; and
, unchanged at $2.25.