Tech Industry

Wind River slides despite topping estimates

Wind River Systems was one of the few tech stocks losing ground Friday, falling 3, or 8 percent, to 36 even though it topped analysts' estimates in its first quarter.

In the quarter, it earned $7.8 million, or 11 cents a share, on sales of $91.6 million.

First Call Corp. consensus expected the Internet software developer to earn 8 cents a share in the quarter.

Including $9.6 million of amortization of goodwill, purchased technology and other intangibles and $30.7 million of acquisition related charges, Wind River (Nasdaq: WIND) lost $32.4 million, or 48 cents a share, in the quarter.

"I'm pleased with how well the company performed in Q1, the first quarter of combined operations with ISI and EST," said CEO Tom St. Dennis in a prepared release. "We have sustained our momentum from Q4, and are on track to achieve our product development and corporate objectives for fiscal 2001."

The $91.6 million in sales represents a 34 percent improvement from the year-ago quarter when it earned $7 million, or 11 cents a share, on sales of $68.3 million.

Last quarter, Wind River disappointed investors when it missed the consensus estimate by 2 cents a share, earning $8.9 million, or 19 cents a share, on sales of $53.4 million.

The stock hit a 52-week high of 66 1/8 in February after falling to a low of 13 3/8 in August.

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

First Call consensus expects it to earn 51 cents a share in the fiscal year.