If they weren't already scheduled to report their quarterly earnings, most tech companies would have been best advised to stay out of the limelight Thursday.
The trading day was a remarkably dismal one for the vast majority of tech stocks. The technology-heavy Nasdaq composite index sank 104.82, or 3.67 percent, after fiber-optics manufacturer Corning said it expected slowing growth in 2001. Networking, Internet, and chip firms were among the hardest hit.
Against that backdrop, it probably wasn't the most opportune time for JDS Uniphase, Qualcomm, ExciteAtHome and host of others to step up with the results of their most recent quarterly earnings period.
But earnings dates must be kept. And so they did step up, and for the most part reported results that were close to or a little bit better than Wall Street analysts had forecast.
Fiber-optic giant scales back outlook: JDS Uniphase Corp. (JDSU) gave investors a mixed bag of good and bad news on Thursday, reporting market-beating second quarter results but trimming its critically watched growth forecasts.
Investors were bracing for the worst after Corning Inc., a components supplier and world leader in fiber-optic cable sales, lowered its guidance and warned that the telecommunications market may soften due to a slowdown in equipment spending by phone carriers.
JDS Uniphase, the world's No. 1 supplier of fiber-optic components that boost the speed and capacity of optical networks, exceeded market estimates and scaled back estimates.
"What I have said all along is that they would beat the quarter, but they would lower guidance for the first half of the year," said George Hunt, analyst at Wachovia Securities. "That's why I lowered (the shares) to buy from a strong buy."
JDS Uniphase said it expects third-quarter pro forma earnings equal to or slightly better than the second quarter, with revenues 7 to 10 percent above the second quarter.
"This change in guidance from previous periods reflects uncertain carrier capital spending prospects, customer inventory adjustments, and a somewhat lower level of near-term sales visibility than the company has experienced in recent periods," JDS Uniphase said in a statement.
The company also said 2001 revenues could come in at the low end of 115 percent to 120 percent growth over 2000, and earnings per share at 82 cents. The mention of the "low end" was new. The company earlier said simply it expected revenue growth of 115-120 percent, and 2001 earnings per share of 80 cents.
"Our current model for the whole fiscal year 2001 has 118 percent growth. And the company's guidance is between 115 percent to 120 percent. So it's very much a minor adjustment," said Jim Liang, analyst at WR Hambrecht & Co.
"As far as guidance for the March quarter, 7-10 percent sequential growth, our current model is 11 percent. So this is very much within our expectations."
JDS Uniphase posted second-quarter pro forma net earnings excluding goodwill of $208 million, or 21 cents per share, compared with year-earlier earnings of $177 million, or 18 cents a share. The pro forma results include revenues from the E-Tek Dynamics Inc. acquisition in June 2000.
Qualcomm profit up, revenue down: Wireless technology company Qualcomm Inc. (QCOM) on Thursday reported fiscal first-quarter earnings that beat forecasts even though pro forma revenues fell from last year.
The San Diego-based company reported net income of $231.6 million, or 29 cents a share, versus net earnings, excluding nonrecurring charges, of $209.6 million, or 27 cents per share, in the year-ago quarter.
The consensus forecast for Qualcomm was earnings of 28 cents a share, according to analysts surveyed by First Call/Thomson Financial.
Qualcomm reported pro forma revenues of $684 million in the quarter ended Dec. 31, compared with $764 million in the same period in the previous year.
ExciteAtHome sees rise in revenue and losses: Internet service and content company ExciteAtHome Corp. (ATHM) on Thursday reported a fourth-quarter loss that was lower than most forecasts and said it ended the year with 2.96 million worldwide subscribers to its high-speed online service.
The company, which earlier this week laid off about 8 percent of its staff, reported a net operating loss of $36 million or nine cents per share in the fourth quarter, compared with an operating profit of $500,000 or nil cents per share a year ago. Analysts on average had expected a loss of 10 cents per share, according to First Call/Thomson Financial, which tracks estimates.
Revenues rose to $169.1 million from $128.8 million in the year-ago quarter.
Reuters contributed to this report.
