SAN FRANCISCO (AFX) -- Dell Inc. rose 4% in after-hours trading Thursday after the personal-computer giant posted quarterly results that were in line with Wall Street estimates, and shares of Advanced Micro Devices Inc. surged 15% on news that Dell will begin using its chips.
At the same time, Intel Corp. shares lost ground after Dell's announcement on AMD, and the price movement in both chip stocks highlights the intensifying battle for business between the business rivals.
The Nasdaq-100 After Hours Indicator, which tracks the evening action of the index's leading stocks, rose 1.8 points to 1,588.95.
Dell said that its fiscal first-quarter profit fell to $762 million, or 33 cents a share, from $934 million or 37 cents a share a year ago. The earnings results were in line with a revised forecast Dell gave on May 8.
Revenue, however, rose to $14.2 billion, a 6% increase over the $13.4 billion the PC company recorded in the year-ago period. The results met the revised estimates of analysts surveyed by Thomson First Call.
AMD jumped 15% to $35.99 after both Dell and AMD said that Dell will start using AMD chips in its high-end server product line later this year.
This marks the first time Dell has used chips from AMD in its products. Shares of AMD were the most actively traded, according to Instinet.
Dell has been an exclusive user of Intel chips. Intel shares were down 4.1% at $17.90.
Shares of Autodesk Inc. were up 1.3% at $38.50. The design-software firm said that fiscal first-quarter profit tumbled 36% as higher expenses, such as those related to employee stock options, weighed to more than offset a 23% surge in revenue. However, both its profit stripped of items and its revenue outpaced analysts' average estimates.
Alkermes Inc. shares rose 2.1% to $20.08. The pharmaceutical firm said that fourth-quarter net income was $4.4 million, or 4 cents a share, on revenue of $53.7 million. For 2007, Alkermes sees revenue of $200 million to $222 million, and operating income of $15 million to $20 million. On a pro forma basis, the company sees annual income of $5 million to $10 million, or 5 cents a share to 10 cents a share. This story was supplied by MarketWatch. For further information see www.marketwatch.com.
At the same time, Intel Corp. shares lost ground after Dell's announcement on AMD, and the price movement in both chip stocks highlights the intensifying battle for business between the business rivals.
The Nasdaq-100 After Hours Indicator, which tracks the evening action of the index's leading stocks, rose 1.8 points to 1,588.95.
Dell said that its fiscal first-quarter profit fell to $762 million, or 33 cents a share, from $934 million or 37 cents a share a year ago. The earnings results were in line with a revised forecast Dell gave on May 8.
Revenue, however, rose to $14.2 billion, a 6% increase over the $13.4 billion the PC company recorded in the year-ago period. The results met the revised estimates of analysts surveyed by Thomson First Call.
AMD jumped 15% to $35.99 after both Dell and AMD said that Dell will start using AMD chips in its high-end server product line later this year.
This marks the first time Dell has used chips from AMD in its products. Shares of AMD were the most actively traded, according to Instinet.
Dell has been an exclusive user of Intel chips. Intel shares were down 4.1% at $17.90.
Shares of Autodesk Inc. were up 1.3% at $38.50. The design-software firm said that fiscal first-quarter profit tumbled 36% as higher expenses, such as those related to employee stock options, weighed to more than offset a 23% surge in revenue. However, both its profit stripped of items and its revenue outpaced analysts' average estimates.
Alkermes Inc. shares rose 2.1% to $20.08. The pharmaceutical firm said that fourth-quarter net income was $4.4 million, or 4 cents a share, on revenue of $53.7 million. For 2007, Alkermes sees revenue of $200 million to $222 million, and operating income of $15 million to $20 million. On a pro forma basis, the company sees annual income of $5 million to $10 million, or 5 cents a share to 10 cents a share. This story was supplied by MarketWatch. For further information see www.marketwatch.com.