WRAL Tech Wire

Hot Off the Wire – Georgia Senate backs digital text books; Goldman Sachs cuts AMD stock; Lexmark profits jump; Syntel CEO resigns

Hot Off the Wire

On The Web

• Local Tech Wire at Twitter - sign up today for latest news alerts

Site Search

Get the latest news alerts: {{a href=”external_link-1”}}Follow LTW{{/a}} at Twitter.

A roundup of the latest news from The Associated Press:

• Georgia Senate expands text books to include digital

ATLANTA — Georgia students could download books instead of loading down their backpacks under a new bill approved by state senators.

The Senate voted 45-5 on Tuesday to expand the definition of a textbook to include digital devices like e-readers for elementary and high schools. Sen. Cecil Staton, the bill's sponsor and chairman of the science and technology committee, says the proposal allows school districts more flexibility to buy new technology and helps students compete in an age of evolving technology.

Opponents of the bill say the language is too vague and that it could run afoul of the state constitution.

The measure must still be approved by the House of Representatives, as well as the governor and state Board of Education.

• Goldman Sachs cuts AMD stock

NEW YORK — Goldman Sachs added Advanced Micro Devices to its "Conviction Sell List" on Tuesday, predicting more sizable losses for the chip maker this year.

AMD made its first profit in three years in the fourth quarter of 2009 because of a $1.25 billion legal settlement from rival Intel Corp., the world's biggest provider of chips for personal computers. But the company would have lost about $57 million, otherwise.

"We expect the company to continue to generate sizable losses in 2010," Goldman analyst James Covello told investors in a note.

He said the company will suffer from its exposure to the low-end desktop business and may lose ground to competition in the server market.

Covello noted that AMD shares have more than tripled over the past year, an indication investors have already taken account of the broader recovery in computer sales.

He reiterated a price target of $5.50, which would be a roughly 30 percent drop from the current share price.

Shares of Advanced Micro Devices Inc. fell 13 cents, or 1.6 percent, to $7.85.

• Cost cutting boosts Lexmark's 4Q profit

LEXINGTON, Ky. — Lexmark International Inc. said Tuesday that cost cutting helped boost its fourth-quarter profit, beating Wall Street forecasts and lifting the printer and copier maker's shares by 11 percent in premarket trading.

Lexmark also said it is seeing demand improve, and forecast results for the first quarter that topped current Wall Street projections.

The company earned about $59.8 million, or 76 cents per share, in the three months ended Dec. 31. That's more than triple its profit of $18.1 million, or 23 cents per share, a year ago.

The most recent results included 40 cents per share worth of restructuring costs and other one-time expenses. Lexmark said last October that it would cut 825 jobs to save money, the second round of layoffs in a year as demand fell off during the recession. Excluding special items, it would have earned $1.16 per share.

Revenue slipped to $1.07 billion from $1.08 billion a year ago.

Analysts polled by Thomson Reuters, who typically exclude one-time costs, were expecting 62 cents per share on sales of $989 million, on average.

It projected a slight year-over-year rise in first-quarter revenue, which was $944.1 million in 2009.

It expects to earn 64 cents to 74 cents per share, including more restructuring charges. Adjusted earnings are expected at between 80 cents and 90 cents per share.

Analysts expect 61 cents per share and sales of $898.5 million.

Shares rose $2.95, or 11 percent, to $29.75 ahead of regular trading.

For the full year, earnings fell to $145.9 million, or $1.86 per share, from $240.2 million, or $2.69 per share, the year before. Sales fell to $3.88 billion from $4.53 billion.

• Syntel CEO resigns; company names director as CEO

TROY, Mich. — Information technology services company Syntel Inc. said its president and CEO resigned on Monday, and was replaced on Tuesday by one of its directors.

The company said Keshav Murugesh, 46, resigned effective Monday "to pursue other opportunities." Company spokesman Jon Luebke said Murugesh "chose to step down for personal reasons, and it would not be appropriate for us at this time to comment on his future plans."

Chairman Bharat Desai praised Murugesh, saying that for the past eight years the CEO was "instrumental in driving Syntel's growth and evolution into a truly world class organization."

The company named Prashant Ranade as chief executive and president. Ranade, 57, has been a director since 2007. He ran Siemens Group Logistics and Assembly Systems NA from 2003 to 2006.

Syntel shares fell 27 cents to $33.47 in afternoon trading.

Editor's Blog

The latest blog posts from our WRAL Tech Wire and WRAL editors. Read more articles…