Tech Stocks Fall Sharply (DRIV, MU, PWER, DGI, SPRD)
Digital River Inc (NASDAQ:DRIV) plunged 11.95% to $16.35. The Company posted first quarter revenue of $102.4 million compared to $98.2 million in the prior year period. The Company expects second quarter revenue of $92 million to $94 million and non-GAAP profit of 17-19 cents per share.
Micron Technology Inc (NASDAQ:MU) increased 3.55% to $6.70 as the company has won the bidding war for bankrupt Elpida, according to Japanese broadcaster NHK. The report comes after SK Hynix said it had dropped out of the bidding. . Micron recently announced a convertible note offering many thought was Elpida-related. Hopes are up that an Elpida sale will lead to a further reduction in global DRAM capacity, and thus allow DRAM prices to continue their 2012 rally.
Power One Inc (NASDAQ:PWER) declined 9.71% to $4.0. The Company reported first quarter EPS of $0.03, beating the analyst estimate of $0.08. Revenue for the quarter was $226 million versus the consensus estimate of $207.23 million.
The Company expects revenue of $240-$260 million for second quarter 2012 versus the consensus of $229.5 million.
Jefferies maintained buy rating on the stock with the price target of $6.
DigitalGlobe Inc (NYSE:DGI) among the gainers and the stock went up 14.13% to $15.43. GeoEye Inc is proposing to acquire DigitalGlobe Inc. The total consideration for the proposed acquisition is $17.00 per share. This will be payable $8.50 per share in cash and $8.50 in GeoEye stock.
The Company expects GAAP revenue growth of approximately 14% in fiscal year 2012. However, analysts are expecting the Company to report revenue of $372 million for fiscal 2012.
Spreadtrum Communications Inc (ADR) (NASDAQ:SPRD) surged up 14.67% to $15.43. The Company reported first quarter net income of $24.3 million or $0.47 per ADS compared to $27.5 million or $0.50 per ADS in the prior year quarter. However, analysts expected the Company to report earnings of $0.39 per share for the first quarter. Total revenue for the quarter increased 17.5% to $161.1 million. Total operating expenses declined 19.9% to $29.21 million.