CNET también está disponible en español.

Ir a español

Don't show this again

Tech Industry

STOCKS TO WATCH:, Galileo, Harbinger, and Yahoo!

    Expect the following technology stocks to be among Thursday's most actively traded issues:, Galileo Technology, Harbinger, Red Hat, and Yahoo!.

  • Corp. (Nasdaq: BYND)

    Not that there's much downside left in this puppy, but might embarrass itself further Thursday after admitting that it will take a restructuring charge of between $11 million to $14 million in its first quarter.

    Its shares fell 1/4 to 3 1/4 Wednesday.

    In its annual report filed with the Securities and Exchange Commission, the Sunnyvale, Calif. company said it grossly understated the restructuring charges it announced in January.

    Originally, it expected to take a charge of between $2 million to $3 million.

    In the annual report, also said it had terminated existing marketing agreements with AOL, CNet, Excite, Yahoo and ZDNet, parent company of this Web site, at a cost of $5.8 million. It also has reduced its workforce by 20 percent and consolidated some of its facilities.

    Company officials said that these actions will "lower future operating expenses and reduce cash obligations for the remainder of fiscal 2000."

    Five of the six analysts following the stock maintain a "hold" recommendation.

    Since peaking at 37 last April, shares have collapsed to a low of 3 earlier this week.

  • Galileo Technology Ltd. (Nasdaq: GALT)

    Galileo shares will be of interest Thursday after it announced that CFO George Hervey is stepping down from his post at month's end to pursue an opportunity with an unnamed pre-IPO firm.

    "While we are disappointed that George will not be continuing with us as we expand our product offerings into the enterprise and wide area markets, we are confident that the financial team that George has put in place and the financial controls and procedures that have been implemented at Galileo during his time as CFO will permit the Company to move forward on a sound financial basis," said CEO Avigdor Willenz in a prepared release.

    Separately, Galileo announced that Mike Tate will become its VP of Finance. Tate previously served as controller for the chipmaker.

    Galileo shares closed up 3/64 to 14 13/16 ahead of the announcement.

  • Harbinger Corp. (Nasdaq: HRBC)

    Harbinger's shares should take off Thursday after Peregrine Systems Inc. (Nasdaq: PRGN) said it will buy it for $2.1 billion in stock.

    Under terms of the deal announced late Wednesday, Peregrine will issue 36 million new shares in exchange for all the outstanding shares of Harbinger. Each share of Harbinger will be exchanged for 0.75 share of Peregrine, the companies said.

    The combined company will enable businesses to access multiple e-marketplaces for requisitioning, acquiring, managing and disposing of critical assets, facilities and other operating resources, according to a press release.

    The transaction is expected to be accounted for by the purchase method and be treated as a tax-free reorganization.

    Harbinger shares closed up 2 to 24 1/8 Wednesday while Peregrine closed up 1 25/32 to 58.

  • Red Hat (Nasdaq: RHAT)

    America Online Inc. (NYSE: AOL) and Gateway Inc. (NYSE: GTW) unveiled a line of small Internet appliances designed to run on the Linux operating stystem.

    The devices, designed to let people tap into the Web while getting dressed, eating breakfast or waiting for a bus, are expected to be under $500 each. They will run the Linux operating system, which Red Hat and Corel (Nasdaq: CORL) offer. The appliances will also have a new version of AOL service, called Instant AOL. They will also feature Netscape's new Gecko browser/HTML rendering engine.

  • Inc. (Nasdaq: SALN) could be in for a big fall Thursday after the online media company said it expects to report fiscal fourth quarter revenue ranging between $2.5 million and $2.9 million, down from $3 million in the third quarter.

    It sees a fourth quarter pro forma loss ranging between 35 cents and 42 cents per share, compared to a per-share loss of 49 cents in the third.

    First Call's survey of three analysts predicted a loss of 33 cents per share for the quarter ended Mar. 31.

    "While we grew our revenues substantially this year and built a customer base of over 325 advertising sponsors, we fell short of our revenue goals," said Michael O'Donnell, president and CEO. "We experienced traditional seasonality in the March quarter coupled with the resignation of the company's senior vice president of sales, Bruce Roberts."

    Final results for the March quarter will be released in May, the company said.

    Shares of Salon rose 5/16 to 4 1/16 in Wednesday's regular trading prior to the announcement.

  • Yahoo! Inc. (Nasdaq: YHOO)

    It's hard to gauge how investors will respond to yet another strong quarter from Yahoo!. In the past, it's taken some lumps after beating Street estimates.

    In its first quarter, Yahoo! earned $63.2 million, or 10 cents a share, on sales of $228.4 million.

    First Call consensus expected it to earn 9 cents a share in the quarter.

    Ahead of the earnings report, Yahoo! (Nasdaq: YHOO) shares closed off 1 13/16 to 165 9/16.

    The $228.4 million in sales marks a 120 percent jump from the year-ago quarter when Internet portal earned $17.7 million, or 3 cents a share, on sales of $103.9 million.

    Including acquisition-related charges, employer payroll taxes on non-qualified options, and a $40,656,000 gain from the exchange of the equity investments, Yahoo! earned $77.8 million, or 13 cents a share, in the quarter.

    Once again, Yahoo! saw impressive growth in both unique visitors and daily page views.

    In March, Yahoo! recorded 145 million unique users, including 14 million users in Japan. Its global registration base grew to more than 125 million cumulative registrations for Yahoo! member services.

    Total traffic soared to 625 million page views per day on average during March, compared to an average of 465 million page views per day in December.