Sector Update: Tech
Technology stocks were mostly lower in afternoon trade with shares of technology companies in the S&P 500 declining about 0.3%.
In company news, NII Holdings Inc ( NIHD ) tumbled to an all-time low Tuesday after the Latin American mobile communications services company late yesterday warned it may need to seek bankruptcy protection after reporting its ninth quarterly loss in a row.
NIHD shares recently were down about 74% at 17 cents apiece, climbing a penny off the new record low for the stock. Including today's declines, the stock has fallen just over 97% during the past 12 months.
In prepared remarks, NIHD Chief Executive Steve Shindler said despite recent efforts to improve the company's operational performance, "we have fallen short in our efforts, leaving the company with a liquidity position that is not sufficient to support the business."
The company ended its June quarter with around $4.8 billion in debt and around $1 billion in cash and equivalents. The company said it was aggressively working to cut costs and was in talks with creditors in a bid to restructure its debt.
The grim prognosis followed NIHD reporting a fiscal Q2 net loss of $623.3 million, or $3.62 per share, widening from a $396.4 million net loss during the year-ago period and exceeding analyst estimates looking for a $2.30 per share net loss.
Operating revenue declined 23% year over year to $968.8 million, topping the Capital IQ consensus by around $20.7 million.
In other sector news,
(+) TRAK, (+19.4%) Adjusted Q2 net income of $22.4 mln, or $0.41 per share, tops $16.7 mln year-ago profit and beating Capital IQ consensus by $0.04 per share. Revenue rises 84.6% to $224.8 mln, exceeding estimates by $12 mln. Guides FY14 revenue above Street.
(-) NUAN, (-10.1%) Projected Q4 adjusted EPS outlook of $0.24 to $0.29 lags consensus by at least $0.05 per share. Revenue forecast of $500 mln to $520 mln trails by at least $20.5 mln. Q3 GAAP net loss was seventh in a row while revenue missed by $12 mln.
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