Tech Industry

STOCKS TO WATCH: Adobe Systems, CMGI, Informatica, InterNap and Project Software

Expect the following technology stocks to be among Thursday's most actively traded issues: Adobe Systems, CMGI, Informatica, InterNap and Project Software & Development.

  • Adobe Systems Inc. (Nasdaq: ADBE)

    The desktop-publishing software developer will be active Thursday ahead of its fourth-quarter earnings report.

    Its shares closed up 1 1/4 to 6 17/8 Wednesday.

    First Call consensus expects Adobe to earn 42 cents a share.

    Last quarter, Adobe topped analysts' estimates when it raked in $57.2 million, or 80 cents a share, on sales of $261 million. It also announced a 2-for-1 stock split.

    Its shares moved as high as 79 in November after falling to a low of 18 3/8 last December.

  • CMGI Inc. (Nasdaq: CMGI)

    The Internet investment firm posted a first-quarter loss of $117 million, or $1.08 a share, on sales of 123.7 million.

    Its shares closed off 6 to 199 3/4 ahead of the earnings report but jumped to 228 in after-hours trading.

    Most of that positive reaction, undoubtedly, can be attributed to its decision to split its stock 2-for-1 on Jan. 11 for all shareholders of record on Dec. 28.

    Excluding the effects of writedowns for goodwill and stock compensation, CMGI lost $6.8 million, or 10 cents a share.

    Historically CMGI has generated much of its income from sales of stock holdings. In the first quarter, CMGI recorded a pre-tax gain of $46.4 million related to the IPO of Navisite (Nasdaq: NAVI), which is majority-owned by CMGI. The company also raked in $48.3 million from selling Yahoo! (Nasdaq: YHOO) stock. Excluding those stock gains, but including amortization, CMGI lost $252.9 million, or $2.23 per share.

    CMGI's Internet operations reported revenue of $85.1 million, more than quadruple from the previous quarter's $18.8 million. Most of the improvement was fueled by the acquisitions of AltaVista and Signatures Network, and higher revenues from Adsmart and Navisite. The Internet segment lost $277.4 million including amortization, or $108 million excluding it.

  • Informatica Corp. (Nasdaq: INFA)

    The maker of software used to compile data for businesses agreed to buy closely held Influence Software Inc. for $80 million in stock to expand in the electronic-business market. Informatica rose 1 1/8 to 102 5/8 at Wednesday's close.

  • InterNap Network Services Corp. (Nasdaq: INAP)

    The Internet service provider will likely rise Thursday after announcing it will split its stock 2-for-1 on Jan. 7 for all shareholders of record on Dec. 27.

    Its shares closed up 8 to 142 ahead of the news and moved up to 150 in after-hours trading.

    InterNap went public in September and is rate a "buy" by all four analysts tracking the stock.

  • Project Software & Development Inc. (Nasdaq: PSDI)

    Project Software confirmed that it will go through with its previously announced 2-for-1 stock split after its shareholders approved a plan to increase the number of outstanding shares from 15.35 million shares to 50 million.

    Its shares closed up 1/2 to 75 1/2 ahead of the news.

    After topping analysts' estimates by 2 cents a share in its fourth quarter, PSDI set its first stock split since July 1995.

    In the fourth quarter, PSDI earned $4.8 million, or 43 cents a share, on sales of $42.4 million.

    Company officials said the stock split will be paid on Dec. 22 for all shareholders of record on Dec. 3.

    Its shares soared to a 52-week high of 92 7/8 in November after falling to a low of 18 in May.

    All six analysts tracking the stock maintain either a "buy" or "strong buy" recommendation.