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Tech Industry

STOCKS TO WATCH: Applied Micro Circuits, Bell Atlantic, Digital Island, Read-Rite and theglobe.com

    Expect the following technology stocks to be among Wednesday's most actively traded issues: Applied Micro Circuits, Bell Atlantic, Digital Island, Read-Rite and theglobe.com.

  • Applied Micro Circuits Corp. (Nasdaq: AMCC)

    The maker of chips for telecommunications and computer networks said pending shareholder approval it will split its stock 2-for-1 on Sept. 9. Applied Micro fell 1 3/8 to 95 3/8 at Tuesday's close.

  • Bell Atlantic Corp. (NYSE: BEL)

    Bell Atlantic and Vodafone Air Touch Plc. decided to split up their joint wireless venture Tuesday, ending a six-month struggle that will still leave Vodafone without a national presence.

    Bell Atlantic shares closed off 1 to 64 ahead of the news.

    Under terms of the agreement, Bell Atlantic will assume ownership of the PrimeCo operations in five markets, including Richmond, Va., New Orleans, La. and Jacksonville, Tampa and Miami, Florida. Vodafone AirTouch will get Chicago, Milwaukee, Wisc. and three markets in Texas -- Dallas, San Antonio and Houston.

    The terms of the agreement were not disclosed.

    The PrimeCo partnership, which serves about 1.3 million customers in markets with a combined population of about 61 million, was created by Bell Atlantic and AirTouch in 1994.

    The partnership was originally set to end in 2001, but Bell Atlantic said it wanted to terminate the pact earlier after AirTouch spurned its takeover offer and agreed to be acquired by Vodafone. Vodafone completed its acquisition of AirTouch on June 30.

    Separately, Bell Atlantic and Vodafone AirTouch said they also reached an out-of-court settlement on a non-compete clause that prevented the two companies from competing in the same markets. The terms were not disclosed.

  • Digital Island Inc. (Nasdaq: ISLD)

    Digital Island posted a much wider-than-expected loss in its third quarter Tuesday, losing $14 million, or $3.96 a share, on sales of $3.7 million.

    The $3.7 million in sales represents a 410 percent improvement versus the year-ago quarter when it lost $4.2 million, or $1.92 a share, on sales of $725,000.

    "Our outstanding quarterly results demonstrate significant progress as measured by the main metrics of our business," said CEO Ruann Ernst in a prepared release. "In the quarter we increased our customer base by 31 percent to 81."

    After raising more than $69 million in its June initial public offering, the stock surged to a high of 40 7/16.

    Both analysts following the stock maintain a "buy" recommendation.

  • Read-Rite Corp. (Nasdaq: RDRT)

    The maker of recording heads used in computer disk drives said it expects to be in violation of certain financial covenants at the end of fiscal 1999, whixh would require the company to immediately repay $142.5 million if it does not obtain a waiver or amendment to its lending agreements. Read-Rite rose 1/16 to 5 1/8 at Tuesday's close.

  • theglobe.com Inc. (Nasdaq: TGLO)

    theglobe.com reported a smaller-than-expected loss, losing $6.7 million, or 27 cents a share, on sales of $4.1 million.

    First Call consensus expected it to lose 32 cents a share in the quarter.

    Its shares closed off 5/8 to 12 7/8 ahead of the report.

    The $4.1 million in sales represents a 430 percent jump compared to the year-ago quarter when it lost $3.9 million, or $1.65 a share, on sales of $800,000.

    In the quarter, theglobe.com's traffic improved 56 percent from the first quarter.

    Last quarter, it lost $4.9 million, or 47 cents a share, on sales of $3.2 million.

    Its shares moved up to a 52-week high of 48 1/2 in April. After splitting 2-for-1 in May, the stock plummeted to an all-time low of 12 11/16 in June.

    Both analysts following the stock maintain "buy" recommendations.

    First Call consensus expects it to lose $1.15 a share in the fiscal year. >