The week of July 2 is going to be relatively light in terms of technology industry news or specific company earnings updates. The Fourth of July holiday falls right in the middle of the week and domestic markets will be closed. The markets will even close early on the third, at 2:00 PM eastern standard time, in preparation for the holiday. Below is a brief overview of the small amount of information flow during the week. The company still clearly has work to do in order to regain investor trust and put this matter behind it, but does operate in the appealing space for cloud-based software. It provides learning and talent management software. Quarterly results are still being worked out, but for the year analysts project nearly 11% total top-line growth and total sales of just over $129 million. They are calling for a full-year loss of 23 cents per share.
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The week is generally light in regard to macroeconomic data release but a couple of job-related reports will come out after the Fourth of July. In the morning of the fifth, payroll processor Automatic Data Processing (Nasdaq:ADP) will release its National Employment Report for the month of June. The following day, on the 6th, another employment report will be released, as will Economics Cycle Research Institute (ECRI) June data regarding inflation and its overall weekly update.
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On Monday, Yahoo listed Saba Software's (Nasdaq:SABA) report earnings. However, there are more pressing matters for the company to attend to. On Friday, Saba announced the results of an internal accounting review and is therefore set to return to its customary earnings-reporting schedule. In a press release, it announced that its internal investigation resulted in the premature reporting of $271,000 in revenue during its fiscal quarter ended Nov. 30, 2010. It is still in the process of figuring out if a restatement is necessary.
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On Thursday, U.K.-based Xyratex Ltd. (Nasdaq:XRTX) plans to announce second quarter results. Xyratex is a key supplier to manufacturers of data storage drives and devices. As such, its results lend solid insight into the general state of technology-industry sales trends and demand dynamics. Its products end up in final products sold by firms, including EMC Corp (NYSE:EMC), Western Digital (Nasdaq:WDC) and NetApp (Nasdaq:NTAP).
For the quarter, analysts project Xyratex will report a 3.4% sales decline to right around $327 million and 29 cents in earnings. For the full year, they currently project a sales decline of nearly 8%, total sales of $1.34 billion, and profits of $1.68 per share. The stock is currently trading at $11.31 per share, right in between its highs and lows over the past 52 weeks. The dividend yield of 2.7% is appealing and above the current market average of 2.3%.
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The Bottom Line
With the holiday trading hours and likely vacation time during surrounding days from many Wall Street professionals, trading volume should be light. The lack of liquidity could exacerbate any surprisingly good or bad news, but generally shouldn't impact the tech space dramatically as news flow is minimal in the industry and only a handful of companies will be reporting.
At the time of writing, Ryan C. Fuhrmann did not own shares in any of the companies mentioned in this article.
The company still clearly has work to do in order to regain investor trust and put this matter behind it, but does operate in the appealing space for cloud-based software. It provides learning and talent management software. Quarterly results are still being worked out, but for the year analysts project nearly 11% total top-line growth and total sales of just over $129 million. They are calling for a full-year loss of 23 cents per share.