Expect the following technology stocks to be among Wednesday's most actively traded issues: Newbridge Networks, PMC-Sierra and Semtech.
Newbridge Networks skipped past analysts' estimates in its first quarter Tuesday, posting a profit of 18 cents a share, on sales of C$495 million.
First Call consensus expected the Canadian network-equipment maker to earn 16 cents a share in the quarter.
It raked in C$47 million, or 26 Canadian cents per share, in the quarter compared to a profit of C$35 million, or 20 Canadian cents per share last year. Sales of C$495 million were up from C$426 million.
That revenue includes a 16 percent sequential increase in sales for Newbridge's flagship asynchronous transfer mode technology, which sends multimedia signals over telecommunications networks at high speeds.
The upside surprise is a marked departure from the company's recent woes. Newbridge Networks had issued profit warnings in five of its past eight fiscal quarters.
Last quarter, Newbridge missed estimates, earning $33 million, or 12 cents a share, on sales of $457.1 million.
PMC-Sierra said Tuesday it plans to issue more than 4.3 million shares of stock to buy a privately-held maker of chip technology for switches and routers.
Mountain View, Calif.-based Abrizio Inc. agreed to be bought by PMC-Sierra for 4.352 million shares, or more than $427.3 million in stock at PMC-Sierra's Tuesday closing price of 98 3/16 per share. Abrizio, a fabless operation, specializes in switch chip fabrics that direct data traveling between ports on ATM networks.
The deal will handled as a pooling of interests. PMC-Sierra currently has more than 63 million shares outstanding.
Semtech's earned $6.2 million, or 36 cents a share, in its second quarter, up 148 percent from the year-ago quarter, on sales of $38.3 million.
First Call consensus expected the chipmaker to earn 31 cents a share in the quarter.
Its shares closed up 1 7/8 to 69 7/8 Tuesday.
Company officials credited The Newbury strength in the semiconductor industry and the firm's investment in technical resources for the upside surprise.