5 Tech Stocks in Focus on Thursday

 |  Includes: AAPL, AUO, EBAY, MCZ, MSFT, TSRA
by: Alex Shadunsky

These five tech stocks were in focus on Thursday after each company released news that drew the attention of market participants.

Tessera Technologies (NASDAQ:TSRA) tumbled after 5% after it gave weak Q2 guidance. The company said that it had total revenues of approximately $71 million for Q2. This compares to the previous Q2 guidance of between $75.5 million and $78.5 million in total revenues. Analysts forecasted revenue of $77 million. Tessera noted that it recognizes Micro-Electronics revenue one quarter in arrears and the first quarter actual data came in lower than expectations, which impacted Q2 financials. Actual DRAM units shipped during Q1 were down sequentially compared to the fourth quarter of 2010, driven in part by a faster than anticipated transition from 1GB to 2GB. This industry transition was in contrast to industry forecasts, which had units rising sequentially in the first quarter as compared to the fourth quarter. Its Imaging & Optics revenue came in below expectations due to lower than anticipated royalties from its Imaging & Optics Japanese licensees and Micro Optics lithography product sales.

eBay (NASDAQ:EBAY) rose over 1% after it said that it will acquire Zong. The company announced that it agreed to acquire Zong, a provider of payments through mobile carrier billing, for total consideration of approximately $240 million in cash. Zong leverages connections with more than 250 mobile network operators around the world, offering localized, secure and easy-to-use payments capabilities for digital goods and services in 21 languages and 45 countries. Zong allows consumers to easily pay for purchases from their mobile phones or computers through direct carrier billing. eBay does not expect the acquisition of Zong to have a material impact on its financial guidance as issued in conjunction with its first quarter earnings release on April 27, 2011. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the third quarter of 2011.

Apple (NASDAQ:AAPL) closed higher after it announced that its App Store downloads have topped 15 billion. The company said that over 15 billion apps have been downloaded from its revolutionary App Store by the more than 200 million iPhone, iPad and iPod touch users worldwide. The App Store offers more than 425,000 apps and developers have created an incredible array of over 100,000 native iPad apps.

Mad Catz Interactive (NYSEMKT:MCZ) jumped nearly 11% after it announced an Xbox 360 publisher license agreement. The company said that it entered into a Publisher License Agreement with Microsoft (NASDAQ:MSFT). The agreement allows Mad Catz to submit games to be published on the Xbox 360 video game and entertainment system from Microsoft. Darren Richardson, the President and Chief Executive Officer of Mad Catz Interactive stated, “The execution of the Xbox 360 Publisher License Agreement marks an important milestone as we pursue our longer term goal of expanding our participation in developing, publishing and distributing games.”

AU Optronics (NYSE:AUO) closed up nearly 1% despite reporting that June revenues fell 28% y/y. The company reported that its preliminary June 2011 revenue was NT$31,273 million, down by 6.9% m/m and 28.3% y/y. Due to customers' inventory adjustments, panel's order momentum was weaker than expected. For June 2011, large-sized panel shipments, with applications on desktop monitor, notebook PC, LCD TV and other applications, exceeded 9.2 million units, a decrease of 11.9% from the previous month. As for small-and-medium-sized panels, the shipments were around 16.55 million units, up by 11.7% m/m.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.