RealTime IT News

Warnings on Earnings

Earnings warnings dragged down some tech stocks today.

The big loser was Compuware , which lost just over 20 percent, or $2.47 to close at $9.70 today after issuing an earnings warning yesterday that it would just break even in its fiscal first quarter amid a restructuring effort. Further compounding this issue, restructuring costs reduced net income for the quarter by $.04 per share, the company said. In a statement, Chairman and CEO Peter Karmanos, Jr. said he was "extremely disappointed in the company's performance this quarter." It also announced that Hank Jallos resigned as president. Shares were still sliding in after-hours trading.

Motorola also issued an earnings warning today, saying it expected a slip in its second quarter sales and profit due to weaker than expected results in Asia and Europe markets. It also warned that its major business line of mobile devices would not be profitable in 2007.

Shares of the cell phone maker had slipped by 25 cents to $17.70 in after hours trading not long after the earnings warning.

Another warning on earnings results came from Vital Images , which makes imaging products. Shares fell by 22 percent to $20.68.

Shares of Dell lost 28 cents to close at $28.37 today. The PC maker launched its new Vostro line yesterday.

But what a day for Boston Communications, a billing and payment software maker for cell phone companies , which agreed to be bought by Megasoft, an Indian firm, for $65 million. Shares of BCGI started out the day at $1.99 and ended up gaining $1.41, or over 70 percent to end the day at $3.40.

Intel lost 40 cents to close at $24.57, but was ticking up in after hours trading.

The Nasdaq gained 12.63, or less than half a percent to close at 2,651.79. The Dow closed at 13,577.87, up by 76.17 points. The S&P 500 rose by 8.63 to end at 1,518.76.