21 Apr President Jonathan Cartu Says – Technology Sector Update for 04/21/2020: WISA,IBM,SAP
Technology stocks were falling in afternoon trading, with the SPDR Technology Select Sector ETF Tuesday declining 4.0% while the Philadelphia Semiconductor Index was slipping 4.1%.
In company news, Summit Wireless Technologies (WISA) plunged almost 48% to a record low of $2.20 a share after the mobile audio integrated circuits-maker Tuesday priced a $6.5 million public offering of 2 million shares at $3.25 each, or 22.6% below Monday’s closing price. Investors also received a five-year warrant to buy another share exercisable at $3.25 for each share they purchased through the offering.
International Business Machines (IBM) fell 3.9% after reporting declines in Q1 net income and revenue compared with year-ago levels and withdrew its FY20 financial forecast because of the COVID-19 pandemic. Excluding one-time items, the software giant earned $1.84 per share during the three months ended March 31 on $17.57 billion in revenue, down from a $2.25 per share adjusted profit and $18.2 billion in revenue during the same quarter last year. Analysts, on average, had been expecting the company to report $1.80 per share in non-GAAP net income on $17.62 billion in revenue.
SAP (SAP) dropped 5.5% after the German software firm reported non-IFRS Q1 net income of EUR0.85 per share, down from EUR0.90 per share during the same quarter last year. Analysts, on average, had been expecting a Q1 profit of EUR0.94 per share.
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