Sector Update: Tech

By Staff,

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Technology stocks were holding slight gains, with shares of technology companies in the S&P 500 climbing about 0.2%.

In company news, American depository shares of Kofax Ltd ( KFX ) slid back near its all-time low Friday after the British enterprise software firm said it expects revenue for its fiscal year ended June 30 will trail its financial guidance despite topping year-ago levels.

Total revenue is seen coming in a range of $295 million to $298 million, up a maximum 11.9% over the $266.3 million in revenue reported during the same 12-month period last year. Software license revenue is projected in a range of $116.5 million to $118.5 million, up as much as 5.6% over FY13 levels.

No analyst estimates are available for comparison. The company April 29 reaffirmed its guidance calling for at least 12.5% revenue growth during FY14, with software license revenue rising in the low double digits.

In prepared remarks, CEO Reynolds Bish said he was disappointed with the revenue shortfalls, blaming them on around $6 million in software license deals held up past the end of FY14. "We believe we will close these transactions during the first and second quarters of fiscal year 2015," he said.

KFX shares were down 10.9% in mid-day trade at $7.20 each, earlier falling to within 13 cents of its May 12 record low of $6.41 a share. London-traded shares (KFX.L) closed with a 7.4% decline on Friday.

In other sector news,

(+) ICLD, (+16.3%) Reports an influx of new purchase orders for its WiFi, distributed antenna systems and other next-generation mobile network solutions, including more than $3.1 mln in orders from existing clients.

(-) EOPN, (-5.0%) Projected Q2 adjusted net loss is at least $0.06 wider than analyst estimates while revenue lags Street view by at least $420,000. FY15 EPS forecast misses consensus. Q1 adjusted loss of $0.14 beats by $0.01 per share. Revenue was in-line.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: KFX

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