RealTime IT News

Tech Data Beats, But Novellus Warns

Tech Data delivered strong results after the close on Thursday, but Novellus warned that customer demand is softer than expected.

Tech Data's earnings of 52 cents a share beat estimates by 3 cents, and revenues of $4.58 billion topped forecasts. The company said it sees third-quarter earnings of 52-57 cents a share, compared to 54 cent estimates, and revenues of $4.65-$4.80 billion would exceed $4.65 billion forecasts. The stock rose 4% after hours.

Novellus said orders for new equipment for the September quarter will come in at the low end of estimates, citing cautiousness about capital expenditures in the chip industry.

Novellus said it expects orders of $420 million, at the low end of the previous $420-$440 million range, and earnings of 37 cents a share on revenues of $412 million. Analysts were expecting earnings of 40 cents a share on revenues of $414 million. Despite the reduced outlook, the stock rose 2% after hours.

Also after the close, TiVo beat estimates.

Tech stocks sagged during the day after Bank of America downgraded the chip sector on concern that excess inventory and slow economic growth may have caused the cycle to peak earlier than expected.

The Nasdaq lost 7 to 1852, the S&P 500 was unchanged at 1105, and the Dow slipped 8 to 10,173. Volume declined to 1.02 billion shares on the NYSE, and 1.19 billion on the Nasdaq. Advancers led 18-14 on the NYSE, but decliners led 18-12 on the Nasdaq. Upside volume was 56% on the NYSE, and 32% on the Nasdaq. New highs-new lows were 104-15 on the NYSE, and 50-35 on the Nasdaq.

SINA fell 6.5% after the company denied rumors that Yahoo might buy a stake in the company. The two have formed a joint venture to start an online auction site.

Apollo surged 8% after reaffirming guidance, sending spinoff University of Phoenix 8% higher too.

Credence , Opsware , ADC Telecom and Cirrus fell on their results.