Technology

Technology Sector Update for 11/07/2017: RMGN,CYRN,QTNA

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Technology stocks were little changed in late trade, with shares of tech companies in the S&P 500 declining less than 0.1%.

In company news, RMG Networks Holding Corp ( RMGN ) fell below $1 a share for the first time ever on Tuesday, declining just over 34% to a record low of 91 cents, after today reporting Q3 revenue lagging the call of the lone securities analyst now following the visual communications company, which also lowered its forecast for FY17 revenue.

Total revenue declined 8% during the three months ended Sept. 30 compared with the same quarter last year to $8.8 million, lagging the single-analyst estimate by $1.0 millon. It also recorded a Q3 GAAP net loss of $0.03 per share, improving on a $0.05 per share net loss during the same quarter last year and beating the analyst call looking for a $0.12 per share net loss.

The company reduced its revenue outlook from its prior view expecting growth during the 12 months ending Dec. 31 in the single-digit percentage range to its new forecast expecting no growth to down 3% compared with FY16 levels. That translates into a new range of $36.5 million to $37.6 million, trailing the $39.96 million lone-analyst call.

In other sector news,

(+) CYRN, Warburg Pincus acquires 21.3% equity stake after buying 10.6 mln shares at $1.85 apiece, or about $19.6 mln overall. The private equity firm also offers to buy up to 75% of the company's outstanding stock for $78.75 mln, purchasing another 31.5 mln shares from other investors at $2.50 each.

(-) QTNA, Reports non-GAAP Q3 EPS of $0.14 per share, up from $0.04 per share during year-ago period and beating the Capital IQ consensus by $0.06 per share. Revenue climbs 46.9% to $50.1 mln, roughly in-line with $49.87 mln analyst mean.

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

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

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