TECH STOCKS: Oracle-SAP Dispute Leads Tech Drama

By Rex Crum

SAN FRANCISCO (MarketWatch) -- Upbeat reactions to several earnings reports and a fresh swipe by Oracle chief Larry Ellison at Hewlett-Packard Co.'s new CEO made for an active day in the tech sector on Wednesday.

In an statement late Tuesday, Ellison, Oracle's (ORCL) chief executive, took some swings at the new brass at H-P (HPQ), CEO Leo Apotheker and Chairman Ray Lane. A trial begins Monday in a software between Oracle and SAP AG (SAP),where Apotheker had been CEO until earlier this year. The trial centers around how much SAP should pay Oracle in damages for stealing Oracle's software a few years ago.

Ellison said, in his statement, that "a majority of this theft occurred while Mr. Apotheker was CEO of SAP," and that Oracle intends to present evidence of Apotheker's involvement in the theft when the trial begins in federal court in Oakland, Calif. on Nov. 1. Ellison added that he expects Lane, a former company president at Oracle, to keep Apotheker "far, far away from the courthouse until this trial is over."

Oracle shares rose 12 cents to $28.75, while SAP was off by $2.42 a share, or 4.5%, to $51.67. H-P's stock gave up 24 cents a share to trade at $42.72.

Other declines came from Microsoft Corp. (MSFT), Apple Inc. (AAPL), IBM Corp. (IBM), Cisco Systems Inc. (CSCO) and Google Inc. (GOOG).

Molex Inc. (MOLX) shares fell $1.61, or more than 7%, to $20.98 after the maker of electronic connector products gave a weaker-than-expected quarterly earnings forecast.

The Nasdaq Composite Index (RIXF) fell 6 points to 2,490. The Philadelphia Semiconductor Index (SOX) rose almost 2%, led by gains from Broadcom Corp. (BRCM).

Broadcom shares rose $3.17, or 8.5%, to $40.36 following the communication chipmaker's strong third-quarter results, in which its earnings rose almost four times from a year ago. Broadcom also gave a strong fourth-quarter forecast.

Compellent Technologies Inc. (CML) shares surged by $4.17, or more than %, to $23.87 after the data-storage technology company posted third-quarter earnings that rose 47% from a year ago. Piper Jaffray also raised its rating on Compellent to overweight following the company's report.

RF Micro Devices Inc. (RFMD) climbed 61 cents a share, or 10%, to $7 after the company reported better-than-expected second-quarter results late Tuesday.

JDA Software Group Inc. (JDAS) rose $2.73 a share, or more than 12%, to $24.88. Late Tuesday, the supply chain management software company reported a third-quarter profit of $8.3 million, or 20 cents a share, on $158.4 million in sales after posting a loss in the same period a year ago.

Router and wireless-networking equipment company Netgear Inc. (NTGR) saw its shares rise $2.64, or more than 9%, to $30.87 after reporting upbeat third-quarter earnings on Tuesday.

Chip-equipment maker FormFactor Inc. (FORM) was up by 52 cents a share, or 6%, to $8.90 following its third-quarter report in which in lost 55 cents a share on $47.3 million in sales. The results were slightly better than analysts' forecasts.

Silicon Image Inc. (SIMGE) shares surged $1.42, or more than 31%, to $5.97 after the chipmaker reported late Tuesday a third-quarter profit of $9.5 million, or 12 cents a share, on $60.5 million in sales. During the year-ago period, Silicon Image lost $15.5 million, or 21 cents a share.