EmailThe tech sector is trading lower today, trailing losses in the broader market. Semiconductors are showing relative weakness in the tech space with the Philly Semi Index trading 2.6% lower. Among chips in the index, WFR (-7.8%) and NXPI (-6.3%) are the notable laggards, while STM (+3.3%) is outperforming. Among other major indices, the S&P 500 is trading 1.1% lower, while the NASDAQ is trading 1.8% lower. The QQQ, meanwhile, is trading 1.5% lower. Among tech bellwethers, ORCL (-2.9%) is under notable pressure.
In earnings last night, recent IPOs LNKD (-4.1%) and FIO (+3.8%) posted a beats and offered upside guidance. Also, DLB (-18.7%) reported a beat and raise, but announced its codec will not be included in MSFT (-1.2%) Windows 8, RBCN (-2.3%) reported a beat, but guided lower, and MIPS (-30.0%) posted a miss and announced its CFO will retire. This morning, BRCD (-29.7%) cut guidance and ABVT (+3.4%) posted a beat and offered upside guidance.
In news, PAY (-4.2%) announced the completion of its acquisition of Hypercom. PAY expects the acquired Hypercom business to contribute in FY12 non-GAAP revenue of $350 mln and non-GAAP fully diluted EPS accretion of $0.20-0.25.
Among notable analyst upgrades this morning, SYMC (-0.9%) was upgraded to Outperform at FBR Capital, Collins Stewart upgraded CCOI (+4.5%) to Buy, CRM (-0.7%) and VMW (-1.5%) were upgraded to Outperform at Wells Fargo, and TU (-1.8%) was upgraded at UBS.
In downgrades this morning, BCSI (-6.4%) was downgraded to Mkt Perform at FBR Capital, DLB (-18.7%) was downgraded at Collins Stewart and Avondale, Pac Crest downgraded BRCD (-6.7%) to Sector Perform, and LNKD (-4.1%) was downgraded at Morgan Stanley.
