Expect the following technology stocks to be among Wednesday's most actively traded issues: Logility, Microsoft and TeraGlobal Communications.
The computer services company said it won a seven-year contract to provide technology services to DuPont Pharmaceuticals Co., a unit of DuPont Co. Follow- on orders could bring the total value of the contact to about $500 million.
Computer Sciences rose 2 3/8 to 94 15/16 at Tuesday's close.
Nortel Networks Corp. (NYSE: NT) is discussing a co-marketing arrangement with Juniper, the maker of Internet-communications gear, in a sign that the telecommunications equipment company is retreating from the competitive market for now, the Wall Street Journal reported on Wednesday.
Nortel is "re-evaluating the market opportunity" for its own Internet router, which has seen months of delays in its development.
The report, citing a person familiar with the situation, suggested Nortel's yet-to-be-launched router is likely to be shelved in favour of higher-capacity equipment that Nortel is hoping to bring to market early next year.
Juniper officials weren't available to comment, the Wall Street Journal said.
Logility shares should move Wednesday after the business software maker posted a loss of $646,000, or 5 cents a share, on sales of $6.9 million in its fourth quarter, roughly matching the figures it preannounced earlier this quarter.
The lone analyst covering the stock predicted it would earn 3 cents a share in the quarter, though the Atlanta-based company told the Street in May to expect a loss of between $600,000 to $900,000.
Its shares moved up 21/32 to 4 3/4 ahead of the results.
Company officials blamed the disappointing results on purchasing delays by customers. Contracts in the enterprise software industry often aren't signed until the final weeks of a quarter.
The $6.9 million, which fell within the company's revised range of $6.5 million to $7 million, marks a 13 percent decline from the year-ago quarter when it earned $381,000, or 3 cents a share, on sales of $7.8 million.
For the fiscal year, Logility earned $2.4 million, or 17 cents a share, on sales of $32.3 million, a 20 percent improvement from the $8.1 million, or 50 cents a share, it lost in fiscal 1999 on sales of $27 million.
Microsoft will be active, possibly downward, Wednesday after CFO John Connors said that while PC demand should improve between 15 percent to 20 percent this year, don't expect blowout earnings and sales.
Connors said the company sees industry-wide personal computer sales growing 12 to 15 percent for its fiscal year beginning July -- a brighter picture than the company painted when it reported its third quarter earnings in April.
Earlier this year, Microsoft cited slow PC growth as one reason it had lowered its outlook in April for year-over-year revenue growth to 15 percent from 20 percent.
Connors reiterated on Tuesday that 20 percent revenue growth rates were not within reach, despite a recovery in the business PC market and the release of the Windows 2000 operating system, which he said was on track.
``Twenty-plus growth is unrealistic unless some things change, because the (company's revenue) base is very large,'' Connors told Reuters.
He declined to comment on the fiscal fourth quarter, except to say that when the company lowered guidance in April, it was because it was ``a difficult quarter.''
``We expected it to be tough, and we're working very hard'' to meet expectations, he said.
Microsoft shares closed up 2 3/4 to 69 5/8 Tuesday.
TeraGlobal shares could be on the slide Wednesday after announcing it layoff 10 percent of its workforce as part of a restructuring as it transforms itself from a research and development firm to sales and marketing company.
The staff reductions primarily affect administrative workers, the San Diego-based communications technology company said. TeraGlobal employs about 70 people at offices in Cambridge, Mass., San Diego, and Logan, Utah.
"Our core focus now is on leveraging the potential of our unique technology and TeraMedia (software) solution toward creating profitability and enhanced value for our customers, employees and shareholders," said CEO David Fann in a prepared release.
TeraGlobal shares closed up 3/16 to 4 1/8 ahead of the announcement.