Tech Stocks Close Gap With Financial Sector for Market Lead

Technology stocks were ending mostly higher, helping to carry the broader U.S. markets to gains, with shares of tech companies in the S&P 500 rising more than 0.9% in recent trade.

In company news, NeoPhotonics (NPTN) fell to a 30-month low on Thursday, sinking to its lowest price since March 2015 at $4.93 a share, after the maker of digital optical receivers and switches said it was beginning an aggressive cost-cutting effort while also reporting sub-par preliminary Q3 financial results.

The upcoming restructuring will include unspecified job cuts along with real estate consolidations and writing down inventory associated with certain projects and other idled assets. The company is expecting the actions will trim costs by around $2 million when fully implemented early next year while resulting in about $4.6 million in charges against its Q3 earnings before trailing off to around $200,000 in Q4 charges.

The company also is projecting a larger-than-expected adjusted Q3 net loss in a range of $0.27 to $0.35 per share compared with the analyst consensus looking for a $0.12 per share loss. It also sees revenue between $69 million to $71 million during the three months ended Sept. 30, down from its prior guidance expecting $70 million to $76 million and lagging the $73.5 million analyst mean.

In other sector news,

(+) MOBL, Altai Capital Management discloses 7.63% active stake in the mobile technology company, spending $22.09 mln to buy 5.3 mln shares in addition to an investor in July contributing 426,710 shares and another individual Monday contributing 1.45 mln to an affiliated fund for 7.19 mln shares overall.

(-) TEUM, Prices $1.57 mln private placement of nearly 1.5 mln shares at $1.05 apiece, an 18% discount to Wednesday’s closing price for the stock.

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