IT Veterans Disappoint

Written By
Paul Shread
Paul Shread
Published: Aug 11, 2004
Updated: Jul 16, 2021
2 minute read

Shares of Cisco Systemsand National Semifell after hours Tuesday after the companies issued disappointing guidance.

Cisco’s earnings of 21 cents a share and revenues of $5.93 billion topped forecasts, but rising inventories and cash flow concerns weighed on the stock even before the company issued its outlook. Cisco said it expects October quarter revenues to be flat to up 2%, which would be at the low end of analysts’ estimates. The stock fell 6% after hours.

Shares of National Semi fell 7% after the close after the company said it sees a 4-5% decline in sales in the August quarter. Analysts were looking for a 2% increase.

Also after the close, Computer Sciencesbeat earnings estimates but missed revenue estimates, and Pomeroy Computerbeat.

Stocks surged during the day after the Federal Reserve raised interest rates and stuck to its view that the current economic soft spot is temporary.

The Nasdaq soared 34 to 1808, the S&P 500 rose 13 to 1079, and the Dow surged 130 to 9944. Volume rose to 1.25 billion shares on the NYSE, and 1.48 billion on the Nasdaq. Advancers led 24-8 on the NYSE, and 22-8 on the Nasdaq. Upside volume was 85% on the NYSE, and 75% on the Nasdaq. New highs-new lows were 31-47 on the NYSE, and 16-178 on the Nasdaq.

Roxioslipped 4% on plans to sell its consumer software division to Sonic Solutionsand change its name to Napster to focus on its online music business. Sonic gained 13% on the news.

Symantecand BMCrose despite restating results to address accounting issues.

ADC Telecomslipped 1% on a warning, and eCollege.complunged 24% on its results.

Merge Technologyclimbed 9% on its earnings.

NVIDIAjumped 8% on a stock buyback plan.

PTEKtumbled 24% on a downgrade.

Broadvisiongained 11% on cost-cutting moves.

And Google’s IPO is back on track, with bidder registration set to close on Thursday.


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