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Wall Street Beat: Tech shares join market slump

Marc Ferranti | Aug. 12, 2013
Though earnings from some tech vendors brightened up a week of tepid market reports, shares of IT companies broadly declined Friday along with the rest of the market.

The news from Shanghai-based SMIC -- Semicoductor Manufacturing International Corp. -- was better. Also reporting Thursday, SMIC, one of the largest contract semiconductor foundries in the world, said revenue for the quarter ending June rose 28.3 percent year over year to $541.3 million, while profit attributable to SMIC rose more than 10 times to $75.4 million from $7.1 million.

Tempering concerns about Chinese growth, CEO Tzu-Yin Chiu said in a statement that revenue from Chinese customers increased 60.6 percent year over year, contributing 40.9 percent of the company's sales.

Internet company earnings were a bit more uniformly upbeat. Groupon, the online group-deal purchasing site, reported that quarterly revenue increased 7.5 percent year over year to $601.4 million while losses declined from $11.7 million to $4 million. The earnings highlighted the importance of mobile communications to online company results.

"We had record mobile performance as 45 percent of our North American transactions came from mobile in March, and more than 7 million people downloaded our apps in the quarter." said CEO Eric Lefkofsky.

Groupon shares ticked up by $0.01 to close at $10.61

Other Internet companies announcing earnings included:

-- Priceline, the travel and vacation booking company, reported a 37.8 percent jump in revenue to $1.4 billion, while profit increased to $37 million from $352 million. Sales were fueled by strong summer travel bookings. Shares closed Friday at $969.90, up $36.15, nearing its dotcom era high of about $1,000.

-- Real estate site Zillow's quarterly revenue jumped 69 percent year over year to $46.9 million. Most of the site's traffic on weekends comes from mobile devices. Investors looked past a $10 million loss, mostly attributable to acquisition-related expenses and one-time stock-based compensation charges, and boosted company shares up by $5.11 to close at $94.10 Friday.

 

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