STOCKS TO WATCH: Ariba, Broadvision, Inktomi
Expect the following technology stocks to be among Tuesday's most actively traded issues: Ariba, Broadvision Inktomi and Electroglas.
The B2B software developer will be active Tuesday after warning its second-quarter results will fall well short of analysts' estimates. The company will also lay off about one-third of its staff.
Ariba executives also said it would cancel its planned acquisition of Agile Software. The deal was valued at $2.55 billion when it was originally announced in January, but has since fallen to about $400 million following a steep drop in Ariba stock.
Ariba said it expected to post a loss of 20 cents a share, excluding non-cash charges. Analysts were expecting a profit of 5 cents a share.
It said sales will come in around $90 million, or about half the Wall Street consensus of around $180 million.
Its shares closed unchanged at $7.97 before falling to $5.62 in after-hours trading.
Broadvision figures to slide Tuesday after warning it will post a loss in its first quarter, missing analysts' sales estimates by at least $45 million. The company will lay off 15 percent of its workforce.
The e-business software developer said it now expects to lose between 14 cents and 16 cents a share in its first quarter on sales of between $85 million and $90 million.
First Call consensus pegged Broadvision for a profit of 2 cents a share on sales of $134.3 million.
Its shares closed off 84 cents, or 16 percent, to $4.50 ahead of the warning before falling to $4.25 in after-hours trading.
Broadvision executives said it will also take an unspecified restructuring charge in the second quarter to cover the costs of laying off 325 employees, or roughly 15 percent of its staff.
It also said it absorbed an additional $4 million in charges in its fourth quarter, resulting in actual earnings of 1 cent a share in the quarter instead of the 2 cents a share it reported in January.
The chip-equipment maker will be active Tuesday after warning that it will miss analysts' estimates in its first quarter.
Electroglas executives said it now expects to post sales of between $42 million and $44 million, about 10 percent to 12 percent below previous estimates.
"Business conditions for the semiconductor and semiconductor equipment industry continued to decline rapidly during the first quarter," said CEO Curt Wozniak in a prepared release. "As a result, first-quarter revenue will be below the guidance we provided in our fourth-quarter earnings conference call."
Electroglas shares closed off $1.38 to $15.13 ahead of the warning before falling to $13.71 in after-hours trading.
Inktomi also revised down its second-quarter earnings and revenue expectations, citing weaker economic conditions.
The company said it expected a second-quarter pro forma loss of between 23 and 25 cents for the just completed three months, excluding charges. That compares with a 4-cent loss expected by Wall Street analysts, according to First Call. Revenues were seen between $36 million and $38 million.