The top pre-market NASDAQ stock market gainers are: Conexant Systems, Herley Industries, Exide Technologies, Vical, and Motricity. The top pre-market NASDAQ stock market losers are: ADDvantage Technologies Group, PennantPark Investment, Breitburn Energy Partners, Allot Communications, and Glu Mobile.
Conexant Systems Inc. (CNXT) stock jumped 17.42 percent to $2.46 in the pre-market session, as it got an unsolicited, written proposal to be acquired by a private equity firm Golden Gate Private Equity Inc. for a price range of $2.35 to $2.45 a share in cash. Conexant's board has determined that the new proposal from Golden Gate would reasonably be expected to result in or lead to a superior proposal, and has authorized the company to enter into discussions regarding the new proposal.
Conexant reported first quarter loss of $9.7 million or 12 cents a share, compared to profit of $8.3 million or 14 cents a share last year. Core loss was $1.4 million or 2 cents a share, compared to profit of $10 million or 17 cents a share last year. Revenue decreased to $46.1 million from $61.8 million.
Shares of Herley Industries Inc. (HRLY) advanced 15.75 percent to $18.81 in the pre-market trading, following its deal to be acquired by Kratos Defense & Security Solutions, Inc. (KTOS) for $19 a share in cash. The deal, through an all-cash tender offer and second-step merger, will have a total value of about $270 million.
Kratos will begin a cash tender offer for Herley stock no later than Feb. 25 for $19 a share, without interest. After completion of the offer, Kratos will buy the balance outstanding shares of Herley stock for the same price, through a second-step merger. The transaction is expected to close during the first quarter of 2011, and is not conditioned on Kratos being able to obtain financing.
Separately, Levi & Korsinsky, LLP and Howard G. Smith said they are investigating into possible breaches of fiduciary duty and other violations of law by the board of Herley Industries in connection with the sale.
Exide Technologies (XIDE) stock climbed 14.83 percent to $12 in the pre-market trading, as its third quarter earnings and revenue topped Street view. Adjusted profit was $27.4 million or 33 cents a share, up from $18.2 million or 23 cents a share last year. Profit was $31.2 million or 38 cents a share, up from $9.8 million or 12 cents a share last year. Sales rose to $800.3 million from $746.5 million. Analysts had expected profit of 25 cents a share on revenue of $741.60 million. The company gave a positive outlook for the future with recent customer wins and an improving market.
Vical Inc. (VICL) stock gained 6.06 percent to $2.10 in the pre-market session. The company announced the issuance of U.S. Patent, assigned to Vical and the University of Washington, covering DNA vaccines for herpes simplex virus type 2 (HSV-2). Vical is collaborating with the University of Washington School of Medicine and the Sealy Center for Vaccine Development, under a previously disclosed grant on the preclinical development of an HSV-2 vaccine.
The initial focus will be for people already infected with HSV-2, with the goal of reducing or eliminating periodic viral flare-ups and the associated viral shedding and transmission. The vaccine will be evaluated with Vical's Vaxfectin adjuvant.
HSV-2 is a sexually transmitted virus which is the leading cause of genital herpes. About 1 out of every 6 individuals in the United States and an estimated one out of every four worldwide is infected by HSV-2 before age 50. HSV-2 infections are persistent and result in periodic virus shedding. HSV-2 infection also significantly increases the risk of acquiring HIV-1.
Shares of Motricity, Inc. (MOTR) increased 4.02 percent to $23.01 in the pre-market trading, ahead of its fourth quarter earnings results. Analysts are expecting Motricity to earn 13 cents a share on revenue of $35.65 million for the fourth quarter.
Shares of ADDvantage Technologies Group Inc. (AEY) plunged 10.60 percent to $2.70 in the pre-market session, as its first quarter earnings decline. Profit was $740,635 or 7 cents a share, down from $859,639 or 8 cents a share last year. Sales decreased to $9.23 million from $10.22 million.
PennantPark Investment Corp. (PNNT) stock lost 5.13 percent to $12.38 in the pre-market trading, following its plan to make a public offering of 7.5 million shares of its common stock. The company expects to use the net proceeds for general corporate or strategic purposes, including repayment of outstanding indebtedness and funding investments in accordance with its investment objectives.
Shares of Breitburn Energy Partners LP (BBEP) declined 4.51 percent to $21.18 in the pre-market session, following its commencement of public offering of 4 million common units representing limited partner interests in the Partnership. The company plans to grant the underwriters a 30-day option to buy up to an additional 600,000 common units if the underwriters sell more than 4 million common units in the offering. The company plans to use the net proceeds to repay indebtedness outstanding under its existing revolving credit facility.
Allot Communications Ltd. (ALLT) stock decreased 4.09 percent to $13.84 in the pre-market trading. Adjusted profit for fourth quarter was $1.84 million or 7 cents a share, up from $19,000 or breakeven a share last year. Revenue rose to $16.21 million from $11.53 million. Analysts had expected profit of 6 cents a share on revenue of $15.07 million.
Glu Mobile, Inc. (GLUU) stock fell 4.03 percent to $3.33 in the pre-market trading, on its weak first quarter guidance. The company guided first quarter loss of 11 cents per basic share, and adjusted loss of 7 cents per basic share. The company projects revenue of $13.7 million to $14.2 million and adjusted revenue of $14 million to $14.5 million. An analyst predicts loss of 4 cents a share on revenue fo $14.64 million.
Glu Mobile posted fourth quarter loss of $4.95 million or 11 cents a share, narrower than $6.91 million or 23 cents a share last year. Adjusted loss narrowed to $1.1 million or 2 cents a share from $3.9 million or 13 cents a share last year. Revenue declined to $15.6 million from $19.1 million, while adjusted revenue decreased to $15.5 million from $19.4 million. An analyst has expected a loss of 8 cents a share on revenue of $14.03 million.