To: Michail Shadkin who wrote (2913 ) 6/26/2001 5:46:25 PM From: T L Comiskey Respond to of 6873 M...Palm........ Palm gains but warnings stress techs 3Com misses; Xilinix, Photronics warn By Nicole Maestri, CBS.MarketWatch.com Last Update: 5:30 PM ET June 26, 2001 NEW YORK (CBS.MW) -- Palm shares led an evening rally in hand-held device makers Tuesday on a narrower-than-expected quarterly loss, but other tech stocks fell as 3Com missed quarterly estimates and Xilinx issued a first-quarter warning. As shares of Palm rose, so too did shares of Handspring, up 5.4 percent, and Research In Motion, gaining 1.7 percent. But 3Com backtracked more than 4 percent on its disappointing results. Elsewhere, Xilinx slid 6 percent following its warnings, as shares of competitor Altera (ALTR: news, msgs, alerts) slid 3.5 percent and Lattice Semiconductor (LSCC: news, msgs, alerts) faltered 3.3 percent. Semiconductor equipment maker Photronics revised its third-quarter earnings, stating the current environment is one the most serve the company has experienced during its 32-year history. Shares fell 13 percent after the warning. CoorsTek issued a second-quarter revenue warning, and its shares were not active in evening trading. Also warning was circuit board maker Merix. Its shares slid following the report. In the broader markets, the Dow Industrials battled back from a triple-digit deficit to end with only modest losses while the Nasdaq managed a close on the upside with a two-day Fed meeting underway. Read Market Snapshot. Palm Hand-held device maker Palm reported a narrower-than-expected loss for its fourth-quarter. Palm (PALM: news, msgs, alerts) reported a fourth-quarter pro forma net loss of $89.2 million, or 16 cents per share, vs. a profit of 3 cents in the year-ago period. That was 3 cents narrower than what analysts had been expecting, according to First Call. Quarterly revenue fell to $165.3 million from $350 million in the same period a year ago, but exceeded the company's reduced sales goal of between $140 million and $160 million projected on May 18. Read full story. Shares of Palm slipped 4 cents to $5.19 in regular trading but rose to $5.93 on the Island ECN.