Sector Update: Tech
Technology stocks were moderately lower, with shares of technology companies in the S&P 500 (^IXT) losing around 0.4%.
In company news, JDS Uniphase ( JDSU ) advanced Thursday after announcing plans to split into two separate companies next year, with one company producing optical components and commercial lasers and the other making instruments and software for optical communications networks.
Separately, analysts at RBC Capital Markets raised their investment rating for JDSU shares to Outperform from Sector Perform following the company's decision to split in two.
The company said the plan - said to have originated with activist hedge fund Sandell Asset Management, according to reports - should eliminate about $50 million in annual expenses after spending between $75 million to $100 million this year on the proposal, JDSU said. The separation is expected to be structured as a tax-free spin-off and is slated for completion within the next 12 months.
The company said the optical components company generated around $794 million in revenue during its last fiscal year, while the communications network company produced about $950 million in revenue. It did not disclose names for the companies.
JDSU shares surged nearly 12% today to $13.54 apiece, earlier climbing to a session high of $13.85 a share. The stock has traded within a 52-week range of $10.59 to $16.61 a share, falling nearly 20% over the past 12 month through Wednesday's close.
In other sector news,
(+) DGLY, (+5.6%) Announces plans to introduce 'Bullet Camera' option for its FirstVU HD body camera system during the International Association of Chiefs of Police Conference late next month in Orlando, Fla.
(-) EOPN, (-28.6%) Trims expected FY14 revenue by $6 mln from its prior outlook to a new range of $83 mln to $85.5 mln, still trailing analyst estimates by at least $4.1 mln. Lowers expected Q2 loss and raises projected revenue, both topping Street view.
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