KLA-Tencor Beats The Street

KLA-Tencor reported strong results after the close on Thursday, but the stock slipped after hours on wide-ranging order guidance.

KLAC's earnings of 48 cents a share beat estimates by 3 cents, while revenues of $450.4 million came in under $451.9 forecasts. The stock traded higher after hours until the company said September quarter orders could rise or fall by as much as 10%, depending on the timing of large orders. The stock gave back half of the day's 2.6% gain on the news.

The chip sector rose 3% during the day for its best gain in months. Chip stocks have been in a one-sector bear market this year, down 27% from their January peak, as the sector has been battered by concern about over supply and softening demand.

Also after the close, Affiliated Computer , NetGear , Netegrity , Adaptec , S1 and Ingram Micro beat estimates. Western Digital missed earnings estimates but topped revenue forecasts. Varian Semi met estimates. Synaptics beat but warned.

Stocks extended their rebound on Thursday, with the broader market gaining for a third straight day. Second-quarter GDP will be released Friday morning.

The Nasdaq rose 22 to 1881, the S&P 500 gained 5 to 1100, and the Dow rose 12 to 10,129. Volume declined to 1.53 billion shares on the NYSE, and 1.71 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 20-9 on the Nasdaq. Upside volume was 72% on the NYSE, and 78% on the Nasdaq. New highs-new lows were 55-39 on the NYSE, and 46-74 on the Nasdaq.

Microsoft slipped at the start of its annual meeting.

Sonus jumped 17% on a profit and the end of the company's accounting issues.

It was a good day for earnings reports, with JDS Uniphase , EDS , InfoSpace , Business Objects , Symbol Tech , Axcelis , Diamond Cluster , Openwave , SafeNet and Sohu all rising on their earnings reports.

ESS Tech , Performance Technologies , RealNetworks and Macromedia fell on their results.

Jupitermedia , parent of this Web site, jumped 9% on an acquisition.