After the Bell-Qualcomm ( $54 1/2 down 9) sinks 13 percent after report
By Chelsea Emery
NEW YORK, April 25 (Reuters) - Top high-tech stocks pared
gains in after-hours trade on Wednesday, following a profit
warning from Qualcomm Inc. <QCOM.O> that sent shares of the top
wireless technology company sliding 13 percent to $55 in
extended trading.
The San Diego-based company said after the close of regular
trading that its third-quarter profit would likely be 21 cents
a share, a third less than analysts surveyed by First
Call/Thomson Financial had forecast. It blamed weak demand for
Qualcomm's products due to a weaker global economy and lower
licensing fees.
Qualcomm, which also posted fiscal second-quarter earnings
that were in line with estimates, had advanced 5.9 percent
during daily trading.
Some cellular phone-related stocks were little changed
after the news. Cell phone maker Motorola Inc.<MOT.N> gained 3
cents to $15.03, according to Instinet, and Swedish
telecommunication-equipment maker Ericsson<ERICY.O> lost 4
cents to $5.99.
The Nasdaq-100 after hours indicator lost 16.39 points, or
0.9 percent, based on trading after the official close in the
tech-heavy market's biggest companies.
Other large technology shares that lost ground included
software giant Microsoft Corp. <MSFT.O>which slipped 0.5
percent to $69.33 on Nasdaq after gaining 3.2 percent during
regular trade.
Biotechnology company Affymetrix Inc. <AFFX.O>, which makes
array chips used to analyze genes, slumped to $29.25 on
Instinet from a close of $35.50 after reporting a loss wider
than analysts surveyed by First Call had anticipated because of
lower-than-expected sales of its chips.
The company said it lost 11 cents a share, more than the 7
cents analysts had forecast, and said that slower sales were
likely to continue through the third quarter.
Such disappointing news prompted markets to pare gains made
during regular trading, when U.S. stocks snapped a
three-session losing streak after a report showed U.S. home
sales climbed to a record, showing a pocket of strength in the
sluggish economy.
The Nasdaq Composite Index<.IXIC> rose 43.19 points, or 2.1
percent, at 2,059.80 and the Dow Jones industrial average<.DJI>
surged 170.86 points, or 1.6 percent, at 10,625.20, while the
broader Standard & Poor's 500 Index<.SPX> added 19.28 points,
or 1.6 percent, at 1,228.75.
Not all the news was bad after exchanges closed and
investors took heart from a quarterly report from PeopleSoft
Inc.<PSFT.O>, which makes software for electronic businesses.
Shares surged to $32 from a close of $29.93 on Instinet
after the company reported profits that beat consensus analyst
forecasts by 22 percent on strong sales. PeopleSoft lost 0.2
percent in regular trading.
Internet switch maker Foundry Networks Inc. <FDRY.O> jumped
to $11.55 on Instinet from a close of $10.73 after the company
topped its lowered sales forecast and kept its promise to make
a profit in its fiscal first quarter.
(( -- Chelsea Emery, Wall Street Desk,
212-859-1937 chelsea.emery@reuters.com))
REUTERS
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