By Rex Crum
Lexmark International Inc. shares scored big gains Tuesday
following the company's strong second-quarter earnings report, but
the broader tech sector found it difficult to ride Lexmark's
coattails north as trading progressed.
Lexmark (LXK), rose $3.52 a share, or more than 10%, to $38.36.
Before the market opened, the printing and imaging technology
company reported a profit of $85.1 million, or $1.07 a share, up
from $17 million, or 22 cents, in the year-earlier period. Revenue
reached $1.03 billion from $905 million.
The results were bolstered by strong sales of printing hardware
and supplies, as well as managed-print services, Lexmark said.
A few other tech stocks following Lexmark's lead, with Apple
Inc. (AAPL), Dell Inc. (DELL), Microsoft Corp. (MSFT) and Google
Inc. (GOOG) notching gains.
However, the Nasdaq Composite Index (RIXF) gave up its early
edge to fall 12 points at 2,284, while the Philadelphia
Semiconductor Index (SOX) and the Morgan Stanley High Tech 35 Index
(MSH) slipped into the red.
Decliners included Zoran Corp. (ZRAN), which fell 86 cents a
share, or almost 9%, to $8.91.
Needham & Co. analyst Rajvindra Gill cut his rating on
Zoran's stock to hold from buy, saying the maker of chips and
software used in digital video has suffered from two-straight weak
quarters of sales in the digital-television market.
Electronics contract manufacturer Sanmina-SCI Corp. (SANM) fell
$2.37 a share, or more than 14%, to $13.49. Late Monday, Sanmina
reported a fiscal third-quarter profit, but its results fell short
of Wall Street analysts' forecasts.
Video-game retailer Gamestop Corp. (GME) gave up 58 cents a
share, or almost 3%, to trade at $20.31 after the company said it
would acquire social-gaming site Kongregate.
Losses also came from Oracle Corp. (ORCL), Seagate Technology
(STX), Intel Corp. (INTC) and Research In Motion Ltd. (RIMM)