By Rex Crum
Big gains from LSI Corp. helped lead tech stocks higher
Wednesday as the semiconductor company raised first-quarter
earnings and revenue forecasts.
LSI's shares rose 65 cents, or 11%, to $6.47 in morning
trading.
Before the bell, the company (LSI) said it expects to report a
quarterly range between a loss of 3 cents a share and a profit of 4
cents a share, on revenue pegged at $620 million to $640 million.
Excluding one-time items, LSI said it should earn between 7 cents
and 11 cents a share for the first quarter ending April 4.
Analysts surveyed by FactSet Research had forecast LSI would
have adjusted earnings of 7 cents a share on $603 million in
sales.
LSI's outlook suggests better-than-expected purchases from
corporate enterprise customers. Chief Executive Abhi Talwalker said
that the company experienced strength across all product areas and
that "the majority of our revenues are tied to enterprise purchases
of servers, data storage and networking infrastructure."
With LSI in the lead, other chip stocks including Advanced Micro
Devices Inc. (AMD), Micron Technology Inc. (MU) and Broadcom Corp.
(BRCM) moved higher.
The Nasdaq Composite Index (RIXF) rose 11 points to 2,389, while
the Philadelphia Semiconductor Index (SOX) and the Morgan Stanley
High Tech 35 Index (MSH) also advanced.
Among other tech stocks, Adobe Systems Inc. (ADBE) rose 2.5%,
adding 86 cents to $35.90 after the Brigantine brokerage raised its
rating on the software company to buy from hold.
Gains also came from Apple Inc. (AAPL), Microsoft Corp. (MSFT),
Dell Inc. (DELL) and Google Inc. (GOOG).
Also higher, shares of online DVD retailer and technology
company Netflix Inc. (NFLX) gained 27 cents to stand at $70.86.
Blockbuster Inc. (BBI), one of Netflix's top rivals, said it may
soon file for bankruptcy.