Expect the following technology stocks to be among Tuesday's most actively traded issues: America Online, Electronics For Imaging and KLA-Tencor.
AOL broke up a painfully slow evening Monday by announcing it will offer the official Web sites of the NBA and WNBA on its site while both leagues will promote AOL during their telecasts.
Financial terms of the deal were not disclosed.
Included in the deal is significant advertising by AOL on non-game NBA programming and the opportunity for users of AOL brands to easily access NBA and WNBA material.
AOL also gains the rights to NBA logos and players' names in connection with a basketball fantasy game to be developed on AOL properties and will integrate NBA and WNBA content and online initiatives in global interactive network.
Its shares closed off 1 3/4 to 55 1/4 ahead of the announcement.
Electronics For Imaging shares figure to slump Tuesday after it warned that its second-quarter sales and earnings will fall well short of analysts' estimates.
Its shares closed off 1 1/8 to 34 3/4 ahead of the announcement. The stock plummeted to 21 1/2 in after-hours trading.
Company officials now expect to post a profit of between 38 cents to 40 cents a share in the quarter, well below the First Call Corp. consensus estimate of 51 cents a share.
It also sees total sales coming in around $150 million, slightly lower than the $152 million it recorded in its first quarter.
The chip-equipment maker could see some activity Tuesday after naming John Kispert as its new chief financial officer, replacing Bob Boehlke.
"We've been very proactive about building the next tier of management infrastructure so that our senior executives could help cultivate the company's future leaders," said CEO Ken Schroeder in a prepared release. "As a result, we have the top talent we need to manage the aggressive growth we see ahead as the increasing 'siliconization' of our world drives even greater demand for KLA-Tencor's comprehensive process control solutions."
KLA-Tencor shares closed off 2 13/16 to 58 11/16 Monday.
The stock surged to a 52-week high of 97 3/4 in April after falling to a low of 23 11/16 last June.
Microsoft might move lower Tuesday after the U.S. Department of Justice rejected all but the most minor Microsoft edits to its breakup proposal Monday, saying the changes would weaken attempts to reel in the company's anti-competitive behavior.
In what is expected to be their final filing to the judge deciding the Microsoft antitrust case, the DOJ and 17 state attorneys general agreed to call the plan a "divestiture" rather than a "reorganization," but they also asked the judge to ignore wording changes they claim would allow Microsoft to discriminate against computer makers and damage industry competition by withholding technology.
In rejecting the edits, government attorneys said the proposed changes "would create loopholes and permit Microsoft to continue to engage in anti-competitive practices like those found by the Court."
Its shares closed up 9/16 to 66 7/8 Monday.
Sycamore was the latest networking firm to go shopping in the fiber optic aisle.
The company said Tuesday it had agreed to buy privately held Sirocco Systems Inc. in a deal valued at about $2.9 billion in stock. Sycamore's acquisition comes just a week after Lucent Technologies (NYSE: LU) bought Chromatis Networks in a move to keep up with Nortel Networks (NYSE: NT) and Cisco Systems (Nasdaq: CSCO).
Under the deal, Sycamore's common stock will be exchanged for all outstanding shares of Sirocco, a Wallingford, Conn.-based optical network equipment firm that targets the metropolitan access market. Sirocco's first products are expected to be available in the fourth quarter of 2000, according to Sycamore.
Sycamore said the deal, which will be accounted for as a pooling of interests, is expected to close in the first quarter of its fiscal year 2001.
Reuters contributed to this report.