Stocks fluctuate
U.S. stock indices were fluctuating on both sides of Tuesday’s closing levels this afternoon, while minutes from a monthly meeting for the U.S. Federal Reserve showed an interest rate cut is not on the horizon. At 14:29 p.m. ET the Russell 2000 had risen 2.54 points, or 0.30%, to 840.07. The Dow Jones Industrial Average was up 25.60 points, or 0.19%, to 13,546.94.
Shares of intellectual property licensor Forgent Networks, Inc. (Nasdaq: FORG) are trading higher following news that quarterly profit more than quadrupled. The net income for the 2007 fiscal third quarter ended April 30 was $6.0 million, or $0.23 per share, compared with a net loss of $1.4 million, or $0.06 per share, in the same quarter of 2006, the Austin, Texas-based company said before the opening bell. Revenue increased a whopping 840% to $21.0 million for the 2007 fiscal third quarter, compared with $2.5 million a year earlier. The growth in revenue was largely due to intellectual property settlements from one of Forgent’s patents. Shares are up $0.17, or 17%, to $1.13.
American grill and sushi bar operator Kona Grill, Inc. (Nasdaq: KONA) lowered its fiscal 2007 outlook due to the delayed opening of new restaurants. Kona Grill now expects annual revenue of $72 million to $73.5 million, compared with previous revenue expectations of $73 million to $75 million, the Scottsdale, Ariz.-based company said after Tuesday’s close. The forecasted net loss is between $1.7 million and $0.4 million, or $0.29 per share and $0.08 per share. Analysts were projecting revenues of $74.1 million and an annual net loss of $0.27 per share. Kona was originally looking to open four new restaurants this year, but said it won’t be able to complete construction at two of the sites until 2008. The stock price has fallen $0.68, or 3%, to $19.27.
Shares of software provider MEDecision, Inc. (Nasdaq: MEDE) have added $0.46, or 11%, to $4.71, on news the Wayne, Pa.-based company has signed an agreement with Lovelace Health Plan of New Mexico. MEDecision will provide its software suite to Lovelace to help it streamline its operations. Financial details were not released.
Problems in the U.S. housing sector will be a drag on growth for the remained of the year, according to minutes of the May 9 Federal Open Market Committee meeting released at 2 p.m. ET. The possibility of lower interest rates was not discussed. The federal funds rate has been at 5.25% for seven straight sessions.
Fed official expect U.S. economic growth to pick up slightly toward the end of the year.
In other economic news, the price of oil has risen about 30 cents to the mid-$65 a barrel range after news of an attack on a Nigerian pipeline.
