STOCKS TO WATCH: 3Com, Click2learn.com, EMusic.com and Xircom
Expect the following technology stocks to be among Tuesday’s most actively traded issues: 3Com, Click2learn.com, Emusic.com and Xircom.
The struggling maker of networking gear said Monday it plans to lay off workers as part of a plan to save at least $200 million a year, the Associated Press reported.
3Com, which has been hurt by a slowdown in spending from telecommunications companies, plans to decide by the end of February how many job cuts will be necessary, spokesman Mike MeCey said. 3Com employs 11,500 people worldwide.
Click2learn.com is in for a rough day of trading Tuesday after the developer of online educational programs warned that it will miss analysts’ estimates by a wide margin in its fourth quarter
Company officials told investors to expect a net loss of between 25 cents to 27 cents a share on sales of $11.2 million.
Analysts were forecasting a loss of only 20 cents a share.
The company's working capital should be about $21 million at the end of fiscal 2000 with $15 million in cash and cash equivalents. That figure should be sufficient to reach its target of being cash flow positive in the first quarter of 2002, Click2learn said.
The stock closed off 25 cents to $9.50 Friday.
The online music service provider will be active Tuesday after it slashed one-third of its workforce and announced the departure of its CFO, COO and its EVP of business development.
Emily Rupp, EMusic vice president and corporate controller will take on the additional duties of chief financial officer.
As of the end of September, the company had just 3,000 subscribers. Subscriptions currently account for about 30 percent of its revenue, with the rest coming from online advertising clients.
Its shares inched up 13 cents to 75 cents a share ahead of the announcements.
Xircom will be busy after Intel (Nasdaq: INTC) said it will pony up $748 million to complement its line of desktop computer components.
Intel officials said it will make a $25 a share tender offer for all of Xircom's stock within10 days.
The acquisition is expected to be completed in the first quarter of this year, the companies said. Upon completion of the acquisition, Xircom will become a wholly owned subsidiary of Santa Clara, Calif.-based Intel.
Xircom, a maker network adapters and modems, reported a loss of $2.46 million or 8 cents a share on sales of $120.1 million in its first quarter.
Its shares closed up 6 cents to $18.06 Friday.
Reuters contributed to this report.>