By Rex Crum
Tech stocks came to life Thursday as gains from the likes of
Cisco Systems Inc. and Qualcomm Inc. helped power a rally across
the sector.
Cisco (CSCO) shares climbed 60 cents to $23.68 after the
networking-gear maker posted first-quarter results late Wednesday
that topped Wall Street analysts' forecasts. Cisco reported a
profit of $1.8 billion, or 30 cents a share, on $9 billion in
revenue.
Qualcomm (QCOM) shares were also on the rise, climbing $1.53, or
3.6%, to $43.11. Late Wednesday, the wireless technology company
reported mixed fourth-quarter results, but also said it extended a
license agreement with Samsung, one of its top customers.
Electronics contract manufacturer Sanmina-SCI Corp. (SANM)
shares rose $1.10, or more than 16%, to $7.75 after the company cut
its fourth-quarter loss.
Late Wednesday, Sanmina said it lost $32.3 million, or 41 cents
a share, compared with a loss of $485.2 million, or $5.48 a share,
during the same period a year ago. Revenue fell 21% to $2.35
billion.
However, Sanmina's chief executive, Jure Sola, said the company
believes the worst of the recession is over and expects demand to
rise in 2010.
With Cisco, Qualcomm and Sanmina leading the way, the tech-heavy
Nasdaq Composite Index (RIXF) rose more than 46 points, or 2.2%, to
2,100. The Morgan Stanley High Tech 35 Index (MSH) climbed 2.5% and
the Philadelphia Semiconductor Index (SOX) was up almost 3%.
Personal navigation device maker Garmin Inc. (GRMN) rose $1.42 a
share, or 5%, to $28.23 despite receiving an ratings downgrade from
RBC Capital Markets. RBC analyst Mark Sue cut his rating on
Garmin's stock to underperform from sector perform saying that
Garmin may see more competition as smartphone makers continue to
add GPS technology to their products.
Gains also came from video-game publisher THQ Inc. (THQI), which
rose 29 cents a share, or almost 6%, to $5.30, and on-demand
corporate software company Netsuite Inc.(N), which rose 69 cents a
share, or almost 5%, to $15.34. Both companies reported quarterly
results late Wednesday.
Other advancers included Apple Inc. (AAPL), Microsoft Corp.
(MSFT), Hewlett-Packard Co. (HPQ), IBM Corp. (IBM), Google Inc.
(GOOG) and Yahoo Inc. (YHOO).