Friday, January 12, 2007

Three Big Tech Companies Issue Earnings Warnings

Chip maker Advanced Micro Devices Inc. fell sharply in electronic trading before the opening bell after it warned that quarterly revenue would fall short of analysts' estimates.

In addition, German software maker SAP posted earnings that fell shy of forecasts and South Korea's Samsung Electronics Co. Ltd. <005930.KS> signaled a tough first quarter on weak demand for flat panel display screens.

We are still very early in the earnings season, so any hard conclusions are not warranted from these announcements. However, the latest rally has been a tech driven rally. So it's important to keep a wary eye on these numbers to see how they play out.