Sector Update: Tech

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Technology stocks were narrowly lower, with shares of technology companies in the S&P 500 slipping less than 0.1%.

In company news, Extreme Networks ( EXTR ) rose to a three-month high Monday after the networking equipment manufacturer raised its outlook for fiscal Q4 net income and revenue, topping Wall Street expectations for the three month period.

EXTR shares were up nearly 14% at $4.98 apiece, earlier climbing to an intra-day high of $5.20 a share - marking its best share price since early May. The stock has a 52-week range of $3.53 to $8.14 a share, climbing nearly 25% in value over the past 12 months.

The company is now expecting non-GAAP earnings in a range of $0.06 to $0.08 per share, up from its prior forecast looking for quarterly EPS of $0.02 to $0.04 and topping analyst estimates by at least $0.03 per share. It also sees revenue in a range of $154 million to $156 million, up from it previous guidance looking for $145 million to $150 million and exceeding the Capital IQ consensus by at least $8.27 million.

The better-than-expected Q4 results were driven strong growth in its North American segment, including deals to equip several NFL stadiums with fan wi-fi access, according to CEO Charles Berger. EXTR also saw sequential and year-over-year growth in Europe, Africa and the Middle East, he said.

Separately, EXTR Monday said it was selected by the Tennessee Titans to outfit the football team's home LP Field in Nashville with high-performance wi-fi equipment. Financial terms of the new contract were not immediately disclosed.

In other sector news,

(+) CPAH, (+47.8%) Awarded U.S, patent for its mobile network-based authentication technology, which allows operators to offer Over the Top communications with mobile-based user authentication, simplifying mobile services over non-mobile devices.

(-) ASTI, (-6.0%) Offers $32 mln of 8.0% secured convertible notes due 2019, with the company pocketing $7 mln at closing and the remaining $25 mln in installments over next 18 months. Deal includes 5-year warrants to buy up to 26.7 mln shares at $0.5246 each.

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

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This article appears in: Investing , Commodities

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