NEW YORK (CBS.MW) - Shares of Intel and Apple traded lower after the
closing bell Tuesday, as their quarterly reports failed to cheer investors
about the future outlook for both the chip and the hardware sectors.
Intel, the world's largest chipmaker, said second-quarter profits declined 76
percent from the year earlier. After an initial bump higher, shares traded down 1
percent at $29.59.
third-quarter earnings that beat expectations. But
and earnings per share in the September quarter." On
the Island ECN, shares dipped nearly 8 percent.
Elsewhere, shares of Veritas Software slid 9 percent
as the software company lowered annual growth
targets. Shares of Plantronics also headed south as
the company reported first-quarter figures that hit
targets, but it then lowered its second-quarter
numbers amid the continued slowdown in telecom
and IT spending.
But shares of RF Micro Devices rose in heavy
demand as its quarterly loss came in as expected.
Intel
Intel (INTC: news, msgs, alerts) reported a 76 percent
decline in second-quarter profits on lower revenue, as
the company's communications and flash memory
chips business remained soft.
The world's largest chipmaker (INTC: news, msgs, alerts) record profits, before
acquisition charges, of $854 million, or 12 cents a share. Revenue came in at
$6.3 billion. Analysts polled by First Call/Thomson Financial expected a profit of
10 cents a share on revenue of $6.29 billion.
Last year, Intel reported revenue of $8.3 billion and pro forma profits of $3.5
billion, or 50 cents.
Looking ahead, the company said the third quarter's revenue should fall within
$6.2 billion to $6.8 billion. Analysts had expected $6.51 billion.
Intel also expects to incur $100 million in equity investment losses in the third
quarter.
In addition, lower gross margins should plague the company in the next quarter
and for the full year.
Shares of Intel were up 2.6 percent to $29.89 on almost twice the 50-day daily
average volume.
Plantronics
Plantronics Inc. (PLT: news, msgs, alerts) reported first-quarter figures that hit
analysts' earnings targets, but it lowered its second-quarter numbers amid the
continued slowdown in telecom and IT spending.
The company reported first-quarter net income of $20.1 million, or 16 cents per
share. That is down from the 38 cents per share earned in the same quarter a
year earlier.
Revenue slid to $80.1 million from $100.4 million in the first quarter a year ago.
"Of some concern is that although international revenue was relatively flat
sequentially, we believe the slowdown in the U.S. is still spreading and may
further affect international demand levels," said Ken Kannappan, president, in a
statement. "I am cautiously optimistic that we may be experiencing a bottoming
in U.S. order rates."
Going forward, the company sees fiscal 2002 revenue "substantially lower" than
2001's revenue of $401 million.
Plantronics also sees second-quarter revenue of $72 million to $77 million, with
earnings per share of 10 cents to 14 cents. Analysts had been expecting
earnings of 25 cents for the second quarter.
The company said it won't update its targets during the quarter.
Shares closed down 20 cents at $22.75 and slid to $21 in third-market trading.
RF Micro Devices
RF Micro Devices, which makes chips for communications equipment, reported
a first-quarter loss of $7.5 million, or 5 cents a share, in line with the average
estimate of analysts, according to First Call/Thomson Financial. A year ago, RF
Micro (RFMD: news, msgs, alerts) earned $16.2 million, or 9 cents a share.
The most recent quarter included a $22.1 million special charge.
On the top line, revenue rose to $70.1 million, up from $55 million a year ago.
Shares of the chipmaker jumped nearly 13 percent to $21.76 on the Island ECN,
after closing out the regular session up 14 cents to $19.31.
Veritas Software
Veritas Software Corp. (VRTS: news, msgs, alerts) met expectations for its
second quarter but said the same won't be true for its annual numbers, as it
lowered its annual growth target.
Shares sank nearly 9 percent to $45.95 on the Island ECN.
Veritas reported pro forma net income, excluding purchase accounting
adjustments for acquisitions, of $80 million, or 19 cents per share. That
compares with earnings of $57 million, or 13 cents, in the year-ago quarter.
Revenue rose 42 percent to $390 million from $275 last year.
Analysts, on average, had expected the company to earn 19 cents a share on
revenue of $391.3 million, according to First Call.
Including purchase accounting adjustments for acquisitions, Veritas posted a
net loss of $129 million, or 32 cents per share, compared with a net loss of $172
million, or 43 cents a year ago.
"We are changing our prior guidance of 35-50 percent annual revenue growth to
a new range of 25-35 percent to reflect the weakness in the economy," said
Gary Bloom, CEO, in a statement.
Shares closed up 4.7 percent at $50.42.
RealNetworks
RealNetworks Inc. (RNWK: news, msgs, alerts) missed analysts estimates by
one penny as it reported earnings of 1 cent a share for the second-quarter ended
June 30.
After the close Tuesday, RealNetworks said it missed analysts' estimates of 2
cents for the quarter. The company earned 6 cents a share for the comparable
period in 2000.
Shares closed up 2.6 percent at $10.78 but slid 3.1 percent to $10.44 after
hours.
Apple Computer
Apple Computer said it earned $61 million during the second quarter, or 17
cents a share -- exceeding the consensus target on Wall Street of 15 cents a
share.
Apple earned 55 cents a share, or $200 million in the year-ago quarter.
The Cupertino, Calif.-based PC maker reported revenue of $1.475 billion vs.
$1.825 billion, a decline of 19 percent.
The company also said it had $4.2 billion in cash at the end of the quarter.
Apple shares ended the day up 4.8 percent at $25.10.
Apple schon fast -10%...