Technology Sector Update for 09/06/2017: EFII,QUIK,TRVG
Top Tech Stocks
Technology stocks were little changed in recent trade, with shares of tech companies in the S&P 500 rising slightly less than 0.1% this afternoon.
In company news, Electronics for Imaging ( EFII ) shone brightly on Wednesday, rising almost 19% to a session high of $41.94 a share after the digital printing company last night said it will soon file its Q2 financial results after completing an internal assessment and also issued revenue guidance for its current quarter topping year-ago comparisons.
The company is expecting revenue for the current quarter ending Sept. 30 between $255 million to $260 million, up at least 3.7% from its $245.6 million in sales during the same quarter last year. Analysts, on average, are expecting around $263 million in sales at Electronics for Imaging this quarter.
Including a $0.05 per share negative charge against its Q3 earnings linked to commercialization costs for its new Nozomi corrugated inkjet printer, the company also is expecting Q3 non-GAAP net income in a range of $0.55 to $0.60 per share. That compares with a $0.58 per share adjusted profit in the year-ago period while analysts, who typically exclude one-time costs from their earnings estimates, are projecting a $0.63 per share non-GAAP Q3 profit, on average.
The company also said although its assessment is not yet complete, it does not expect to report any material errors that would require a restatement of any previous quarter's results. But the company also said it is expecting to find material weaknesses in its internal controls over financial reporting, explaining its disclosure controls likely were not effective in prior periods.
In other sector news,
(+) QUIK, (+8.6%) Significantly increases the number of engagements with hearable companies and fills three newly created senior level positions to support growth of its EOS S3 sensor processing platform. Also renews line of credit with Silicon Valley Bank with improved covenants.
(-) TRVG, (-17.3%) Falls to record low share price after paring expected Q3 revenue growth to 40% from prior forecast expecting 50% year-over-year growth. Also expects financial results for the rest of the year will be softer than previously forecast.
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