Markets
IEC

Sector Update: Tech

Technology stocks were ending mostly higher this afternoon with shares of technology companies in the S&P 500 advancing around 0.7%.

In company news, IEC Electronics ( IEC ) was finishing Tuesday trading with strong gains after a federal judge in New York late yesterday tossed out a securities class action lawsuit filed last year against the company and its top executives alleging they misrepresented the financial performance of a December 2010 acquisition.

IEC paid $26 million for the acquired company, Southern California Braiding, which began to show signs of distress late in 2011, later requiring IEC to restate its financial results for the fiscal years ending in September 2011 and 2012 and prompting steep declines in the company's share price.

But in his ruling, U.S. District Court Judge Jesse Furman wrote the plaintiffs fell short of alleging "conduct which is highly unreasonable and which represents an extreme departure from the standards of ordinary care. The decision also bars the plaintiffs from filing a new case against the company.

IEC said it does not know whether the plaintiffs will appeal the Sept. 11 ruling.

IEC shares were up nearly 5% in late trading at $4.90 each, retreating slightly from their session high at $4.95 a share. The stock has traded within a 52-week range of $3.55 to $6.02 a share, rising over 27% during the past year through Monday's close.

In other sector news,

(+) ENTR, Authorizes review of strategic options, hiring Barclays to assist with review. Also guides Q3 revenue at least $7.2 mln under $50.2 mln consensus. Sees non-GAAP net loss $0.04 wider than $0.11 per share loss expected by analysts.

(-) QADB, DynaSys subsidiary inks contract with pool and spa products company Zodiac Poolcare, which will use DynaSys software to optimize sales forecasts as well as its distribution, sales and operations planning.

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) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


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

In This Story

IEC

Other Topics

Commodities