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Tech Stocks Extend Rebound - Blackberry Landing New Business Clients, Looks to Software, Service

By: MT Newswires
Posted: 4/16/2014 3:52:00 PM
Referenced Stocks:

Top Tech Stocks

MSFT +1.33%

AAPL +0.15%

IBM -0.07%

CSCO +0.55%

GOOG +3.41%

Technology stocks were moderately higher with shares of technology companies in the S&P 500 gaining abourt 0.9% in late afternoon trade.

In company news, BlackBerry (BBRY,BB.TO) shares were lower in late Wednesday trading and the smartphone company today saying several large Canadian customers were now using its BlackBerry Enterprise Service 10.

BBRY shares were down 1.25% at $7.12 apiece in late afternoon trading, just 2 cents off its intra-day low. The stock has a 52-week range of $5.44 to $16.59 a share, losing 48.9% in value over the past 12 months. BB.TO was down about 1.3% at C$7.85 a share at Toronto Stock Exchange.

Among the new customers, the company said, are construction manager Volker Stevin, the City of Waterloo, Ontario and Samuel, Son & Co. Ltd., a manufacturer of steel pipes and other metal products. The deals represent a return of sorts for BBRY to its focus on business customers, with the company citing a recent J. Gold Associates study concluding the typical enterprise user over the next year or two will employ between three to five personal devices and use up to 10 business applications in their jobs.

Also today, Forbes reported CEO John Chen expects BBRY to focus more on software and services while reducing its reliance on smartphones - possibly dropping its device business entirely if it remains unprofitable - in the future as part of a turnaround strategy he believes will likely take around two years to show results.

In other sector news,

(+) YHOO, Q1 earnings of $0.38 per share beat by $0.01. Revenue climbs 1.2% over the same quarter last year to $1.09 bln, in-line with estimates. GAAP display revenue was unchanged at $463 mln; search revenue was up 5% to $445 mln.

(-) LLTC, Q3 revenue climbs 10.6% over year-ago levels to $348 mln but narrowly lags Capital IQ consensus by $2 mln. Non-GAAP EPS of $0.55, excluding $0.07 per share in one-time items, $0.07 better than estimates. Q4 revenue outlook in-line with Street.