Tech Stocks Nudge Higher Amid Warnings from Software Makers

Strategic Insights -

The tech-laden Nasdaq Composite Index inched up 1.75 points to 2,077.41 on Friday, driven by small gains from Microsoft Corp., Oracle Corp., and Cisco Systems Inc. However, the rally was dampened by a trio of software makers that came under pressure after issuing warnings about their pending quarterly results. Siebel Systems Inc., Borland Software Corp., and Altiris Inc. fell due to disappointing sales forecasts and management changes.

Key Takeaways:

  • Siebel Systems Inc. warned that its second-quarter sales are expected to fall short of Wall Street forecasts, with the company expecting to swing to an operating loss.
  • Borland Software Corp. dropped 9.5% after its chief executive resigned and the company warned that its quarterly results would fall short of expectations.
  • Altiris Inc. sank 13.5% after cutting its second-quarter revenue forecast, citing delays in several large deals with Hewlett-Packard Co.
  • Intel Corp. rose 20 cents to $26.76 on Friday, with Bear Stearns lifting its second-quarter forecast citing strong June shipments.
  • The Philadelphia Semiconductor Index rose 1.85 points, driven by gains from Intel Corp., which was boosted by Bear Stearns' revised forecast.

Statistics:

  • The Nasdaq Composite Index inched up 1.75 points to 2,077.41 on Friday.
  • Microsoft Corp. gained 1.5%, Oracle Corp. rose 2.1%, and Cisco Systems Inc. climbed 2.3% on Friday.
  • Siebel Systems Inc. fell 2.4% to $8.58, with a drop of 21 cents.
  • Borland Software Corp. dropped 9.5% to $6.06, with a decline of 64 cents.
  • Altiris Inc. sank $2 to $12.85, with a loss of 13.5%.
  • Intel Corp.'s second-quarter forecast was revised to 38 cents a share on sales of $9.84 billion, up from prior estimates of 36 cents on sales of $9.68 billion.

Sources:

  • "Technology stocks nudged higher early Friday..." - Dow Jones Commodities News Select via Comtex (http://www.comtexnews.com)
  • "Microsoft Corp. (MSFT), Oracle Corp. (ORCL) and Cisco Systems Inc. (CSCO)..." - Dow Jones Commodities News Select via Comtex (http://www.comtexnews.com)
  • "Siebel Systems Inc. (SEBL) fell 21 cents, or 2.4%, to $8.58..." - Dow Jones Commodities News Select via Comtex (http://www.comtexnews.com)
  • "Borland Software Corp. (BORL) dropped 64 cents, or 9.5%, to $6.06..." - Dow Jones Commodities News Select via Comtex (http://www.comtexnews.com)
  • "Altiris Inc. (ATRS) sank $2, or 13.5%, to $12.85..." - Dow Jones Commodities News Select via Comtex (http://www.comtexnews.com)
  • "Intel Corp. (INTC), the world's largest chipmaker, rose 20 cents to $26.76..." - Dow Jones Commodities News Select via Comtex (http://www.comtexnews.com)
  • "Copyright (c) 2005 Dow Jones & Company, Inc. News Provided by COMTEX (http://www.comtexnews.com)"