Tech Stocks Falling; Montage Tech Rallies to All-Time High After Raising Q4 Sales Outlook
Top Tech Stocks
Technology stocks are lower, with shares of technology companies in the S&P 500 retreating 0.5%.
In company news, Montage Tech ( MONT ) hit a new all-time high after the chip-maker raised its outlook for Q4 revenue by as much as $3 million over its prior guidance, forecasting between $35 million to $35.5 million in revenue during the three months ended Dec. 31, exceeding the Capital IQ consensus by at least $1.94 million.
MONT executives said the higher revenue expectations reflect growing demand and improved sales of its memory interface devices as well as continued growth of its set-top box products in China and other emerging markets. Set-top box revenue is expected to be up more than 10% during Q4 from the prior quarter while memory interface sales rose over 80% from Q3 levels.
Shares rose steadily throughout much of the morning session, topping out at $22.87 shortly before 1 p.m. ET - up 16.3% from Wednesday's close.
The stock has now more than doubled from its initial public offering price of $10 a share on Sept. 26, 2013, rising 16.3% to $22.79 a share in recent trade.
In other sector news,
(+) USAT, (+6.7%) The company's largest shareholder, S.A.V.E. Partners IV LLC, n a Jan. 8 letter calls for a review of its strategic alternatives, with the investment fund saying a sale of the company is the best alternative to maximize shareholder value.
(-) CALX, (-6.3%) Reduces Q4 EPS guidance by as much as $0.04 to a new range of $0.02 to $0.04 and cuts revenue outlook by up to $8.5 mln to $93.5 mln to $94.5 mln. Street is expecting EPS to earn $0.07 per share on $100.41 mln in revenue.
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