Technology

Technology Sector Update for 08/03/2016: DRWI,DDD,RUBI

Top Tech Stocks

WMT -0.66%

MCD -0.32%

DIS +1.05%

CVS -0.95%

KO +0.07%

Technology stocks were little changed in afternoon trading, with shares of tech companies in the S&P 500 hanging on to less than a 0.1% advance.

In company news, DragonWave (DRWI,DWI.TO) shares flamed out Wednesday after the electronic components manufacturer today priced a $6 million public offering of equity units consisting of shares of its common stock or pre-funded warrants to buy additional shares in addition to separate short- and long-term warrants.

The company plans to sell up to 1.79 million Class A units at $3.35 apiece, with buyers receiving one share of DragonWave stock, a five-year warrant exercisable at $4.37 a share and two six-month warrants exercisable at $4 a share. It also is offering an equal number of Class B units at $3.34 each and consisting of a pre-funded warrant to acquire one common share, one of the five-year warrants and two of the shorter-term warrants.

Participants in the deal can buy any combination of Class A and Class B units although investors whose purchase of Class A units would boost their individual stakes above the company's 9.99% ownership limit will instead be offered the Class B units. The company also disclosed plans for a $211,000 private placement of 63,000 Class A units for Canadian investors.

DRWI shares were down over 13% at $3.15 apiece, rebounding slightly from their session low of $3.06 a share. DWI.TO shares also were sharply lower, falling 13.4% to C$4.14 each in recent trade at the Toronto Stock Exchange.

In other sector news,

(+) DDD, (+19.1%) Adjusted Q2 net income of $0.12 per share beats Wall Street consensus by $0.06 per share. Revenue falls 7.3% to $158.1 mln, narrowly missing the $160.9 mln analyst mean.

(-) RUBI, (-32.3%) Lowers FY16 revenue forecast to $260-275 mln, trailing Street view by at least $20.25 mln. Keeps earnings guidance unchanged, still missing consensus call for this year by at least $0.05 per share. Q3 EPS, revenue outlook also lags estimates.

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

RUBI DDD

Other Topics

Commodities