Good results and announcements from key US technology companies show the sector remains buoyant in terms of earnings and corporate shenanigans, according to media reports.
By the end of Monday`s trading session, the tech-heavy Nasdaq Composite index rose 25.02 points, or 1.3%, to close at 1 936.52. About 300 of the Nasdaq`s 500 technology companies are expected to post third quarter earnings this week.
IBM was among the heavyweights to gain. It reported third quarter earnings of $1.17 (R6.60) a share before items, better than Wall Street estimates, but considered flat compared with the previous quarter. The stock closed up $1.07 at $85.92.
There was also an announcement from US software giant Microsoft and networking superpower Cisco saying they would work more closely to make their products interoperate more reliably with each other. This relates particularly to the compatibility of anti-virus and network security in their products.
The companies said they would share technical details and standardise technologies, but did not announce any details or a timetable for new products. The Microsoft share jumped 42c to $28.41, and Cisco gained 17c to $18.65.
Israeli-owned network and Internet security group CheckPoint Software rose $3.18 to $21.10, a bounce of 18%, after announcing it expects fourth quarter earnings per share of 28c to 29c excluding charges on revenues of $136 million to $144 million.
On the downside was troubled software firm JDA Software, which halved third quarter earnings as it experienced delays in a "significant" number of software licence transactions.
The company said net income fell to $1.65 million, or 6c a share, from $3.37 million, or 11c a share. Revenue dropped 13.3% to $50.3 million from $58 million.
Internet trading group ETrade reported third quarter net income of $79.3 million, or 21c per diluted share, compared to net income of $61.4 million, or 17c per share, in the same quarter a year ago. Net revenues totalled $337.1 million, a 13% decline over the year ago period.
The company says it continues to achieve greater integration of its trading, investing, banking and lending solutions, and is strengthening its strategic position and increasing competitive advantage through a differentiated value proposition.
In other news, former PeopleSoft CEO Craig Conway, fired earlier this month, will have his landing cushioned by an $18 million severance payment, according to the company.
Security and Exchange Commission documents filed by PeopleSoft this week reveal a $3.2 million cash payment for the ex-CEO. Other provisions mentioned in the filing, but not detailed, add almost $15 million more to the package.
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