- There has been little to celebrate on Wall Street for high-tech companies over the last couple of days.
In fact Cabletron Systems and Qwest Communications International provided nearly the only pieces of good news: Cabletron announced that it has reversed its year-ago loss and Qwest said its fourth-quarter and full-year earnings would meet or beat Wall Street estimates.
Elsewhere in the telecommunications market, the news was not so good. AT&T added its voice to the financial warning frenzy when it cut revenue goals almost in half for the fourth quarter set to end December 31. This was followed by the announcement Thursday that Lucent Technologies is expecting its fiscal first-quarter loss to be much larger than previously expected.
Also contributing to the gloom was Real Networks, which warned that it expects its fourth-quarter revenue and earnings to miss expectations because of a downturn in internet-related spending, and Xerox, which warned of a larger than expected fourth-quarter loss.
Companies in the chip sector were also affected. Micron Technology reported that its first-quarter profits have fallen short of expectations, and Chartered Semiconductor Manufacturing -- the world's third-largest contract chip manufacturer -- warned that it expects a fall in sales in the first quarter, rather than the 5% increase it previously expected.
Handheld device vendor Palm was dragged down by all of this pessimism: The company posted better-than-expected earnings for its second quarter of fiscal 2001, only to see its share price hit the skids amid a broad sellout of technology stocks.