Equity Movers: Solectron, AMD, Creative Technology, Microsoft
Solectron, Advanced Micro Devices, Creative Technology, Electro Scientific Industries, Microsoft, PLX Technology and PSi Technologies Holdings are companies expected to move in the markets Tuesday.
Solectron (SLR): The world's biggest contract manufacturer for electronics Monday topped analyst estimates for its fiscal first quarter by 3 cents. Excluding acquisition-related and one-time charges, the company earned $190.6 million, or 31 cents per share, on sales of $5.7 billion. Analysts polled by First Call/Thomson Financial expected the company to earn 28 cents. Shares of Solectron were unchanged at $26.72 in morning trading.
Advanced Micro Devices (AMD): The chipmaker said Monday it will double the amount of flash memory chips it supplies to Cisco Systems, under an amended three-year agreement. Shares of Advanced Micro were unchanged at $15.25.
Creative Technology (CREAF): The maker of computer sound cards warned that its revenue for the second quarter ended Dec. 31 would be 5 percent to 7 percent below the company's original guidance because of slowed demand from PC manufacturers. Shares of Creative Technology fell 38 cents, or about 3 percent, to $11.
Electro Scientific Industries (ESIO): The maker of electronic component testing equipment reported a second-quarter net income of $1 a share, beating the 87-cents consensus estimate of analysts polled by First Call/Thomson Financial. Shares of Electro Scientific Industries rose $5.44, or nearly 25 percent, to $27.56.
Microsoft (MSFT): The software maker plans to cut costs throughout its businesses, according to a Wall Street Journal report, citing an internal memo. Chief Executive Steve Ballmer asked his top executives to "significantly reduce" some expenditures budgeted for its fiscal year. Ballmer also promised in the memo to raise the base salaries of some high performing employees. Shares of Microsoft fell $1.19, or about 2 percent, to $46.63.
PLX Technology (PLXT): The maker of chips and software for networking and communication companies warned that its fourth-quarter revenue would be 10 percent to 15 percent lower than its third-quarter revenue of $18.4 million. In a news release, the company cited "softening demand in the industry." Shares of PLX fell $3.56, or nearly 36 percent, to $6.38.
PSi Technologies Holdings (PSIT): The test service provider and maker of semiconductors warned that its fourth-quarter net income and revenue would fall short of expectations because of weak demand. The company estimates net income will be about 12 cents to 13 cents a share, less than the 15-cents estimate predicted by analysts polled by First Call/Thomson Financial. Shares of PSi Technologies fell $1.31, or about 16 percent, to $6.88.