TQNT ($22.75) SAWS ( $25.40) warned , shares slide
By Nicole Maestri, CBS.MarketWatch.com
Last Update: 5:01 PM ET May 23, 2001
NEW YORK (CBS.MW) -- Warnings from merger partners TriQuint Semiconductor and Sawtek kept technology shares in a funk after the closing bell Wednesday.
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The two companies warned that revenue and earnings would fall below previous expectations based on sustained weakness in customer orders and the wireless sector.
The warnings outweighed positive quarterly results from J.D. Edwards and Synopsys, as many tech stocks couldn't pull out of their regular-session doldrums. Nasdaq heavyweights Cisco, JDS Uniphase and Intel continued to trade in the red after the closing bell.
In the broader markets Wednesday, the tech bulls retreated and the sector was engulfed in red, dragging down the Nasdaq and ending its six-day winning streak. The Dow Jones Industrial Average posted a triple-digit loss as its financial, drug and retail issues struggled. Read Market Snapshot.
TriQuint Semiconductor
TriQuint Semiconductor (TQNT: news, msgs, alerts) cut its revenue and earnings estimates for the remaining three quarters of the year based on sustained weakness in bookings and customer order delays.
Triquint said it now expects second-quarter earnings of 3 cents a share on revenue of $60 million to $65 million, according to figures cited during a monthly business update. Analysts surveyed by First Call/Thomson Financial expected earnings of 11 cents a share on revenue of $71.5 million.
"I can not tell you whether or not we are in the bottom of the slowdown and I cautiously advise you to use this forecast for the third quarter and fourth quarter," said Chairman, President and CEO Steven Sharp.
Gross margins are pegged at 35 percent for the second quarter. Triquint said it will update investors next month on June 20. Actual second quarter results are expected on July 20.
On Island, shares shed 7.3 percent to $23.
Sawtek
Sawtek cut its revenue and earnings per share estimates for the third quarter citing a continued slow down in the wireless communications sector.
Orlando, Fla.-based Sawtek (SAWS: news, msgs, alerts) now sees revenue coming in between $17 million and $19 million with earnings per share in the range of 6 cents to 8 cents.
Analysts had been expecting third-quarter earnings per share of 18 cents, according to First Call/Thomson Financial.
Shares of Sawtek closed down 11 percent at $28.25 and slid to $26.24 on Island.
J.D. Edwards & Company
After the market closed, J.D. Edwards & Company (JDEC: news, msgs, alerts) reported second-quarter earnings excluding one-time items of $2.9 million, or 3 cents a share, compared with a loss of $9.6 million, or 9 cents, in the year-ago period. Analysts anticipated a loss of 4 cents a share.
Revenue totaled $216.7 million compared with $231 million in the year-ago period. License fee revenue slipped to $62.3 million, compared to $81.7 million in the year-ago quarter.
Shares lost 70 cents to close at $11.93. On Island, shares reached $12.56.
Synopsys
Synopsys (SNPS: news, msgs, alerts) reported better-than-expected second-quarter earnings after the market closed. Net income totaled $15.8 million, or 24 cents a share, on revenue of $163.5 million. Analysts anticipated a per share profit of 20 cents, on revenue of about $165 million, according to First Call. In the year-ago period, the company reported revenue of $204.9 million, with net income of $37.4 million, or 53 cents a share.
The electronic design automation tools company said that due to the transition to a subscription license model revenue and net income dropped compared with the year-ago totals. The company added that it expects third-quarter revenue of about $173 million to $178 million, with earnings of between 25 cents and 29 cents. Analysts currently expect revenue of about $177.7 million and earnings of 27 cents.
Shares finished Nasdaq trading down 3.3 percent at $60. In evening trading, shares rose to $60.50.
Express Scripts
Express Scripts (ESRX: news, msgs, alerts) said its board has approved a 2-for-1 stock split and said its full-year earnings per share will come in on the high end of expectations.
Express Scripts said fiscal 2001 earnings per share will be on the upper end of the $3.04 to $3.10 range given by First Call/Thomson Financial. The company also said it expects 2002 earnings to grow 25 percent to 30 percent vs. 2001.
Shares closed down 41 cents at $92.95 but rose to $94.61 in evening trading.
Nicole Maestri is a reporter for CBS.MarketWatch.com |
