Tag - NETM

Small-cap stocks surged midday buoyed by a rallying U.S. dollar, falling oil prices and better-than-expected economic data.

At 1:41 p.m. ET, the Russell 2000 (NYSE:IWM) was up 12.26, or 1.71%, to 728.44, while the Dow spiked 183.03, or 1.43%, to 13,003.16.

The greenback has been charging higher today. Midday, the dollar had rallied more than 1% against the euro to $1.5451 — its highest point since late March. The dollar’s rally comes on the heels of Wednesday’s 25 basis point cut in the fed funds rate.

“[The] market is indicating to the Fed that the Fed has done enough,” Andy Busch, Global foreign exchange strategist for BMO Capital Markets said in an email. “Sometimes it is more important to see how the market reacts to data/event rather than the data/event themselves. This is the case today, as we had relatively weak jobless claims coupled with as expected personal income/personal spending and the U.S. dollar rallied hard. To me, this signals a clear break in the downtrend for the U.S. dollar.”

As the dollar rallied, crude oil dipped $2.58 to $110 a barrel, after tumbling hard yesterday on a jump in inventories.

In economic news, better-than-expected numbers from the ISM Manufacturing Survey and consumer spending helped lift stocks.

The ISM Manufacturing Survey — released at 10:00 a.m. ET — came in at 48.6%, slightly above the forecasted 48%. While, anything below 50 signifies contraction, the index has not fallen far enough to signal a broader recession. Skittish traders were also calmed after the Commerce Department reported this morning that consumer spending rose a more-than-predicted 0.4% in March. Consumer spending accounts for two-thirds of the GDP. 

On a cloudier economic note, investors shrugged off worse-than-expected economic data. The Construction Spending report, which came out this morning, was down 1.1%, which was below the forecasted loss of 0.6%.

Weekly Jobless Claims data reported this morning before the opening also clocked in worse than anticipated. For the week ended April 26, jobless claims jumped to 380,000, above the forecasted 360,000.

Software company NetManage, Inc. (Nasdaq: NETM) today reported robust financial results for the fourth quarter.

For the three months ended Dec. 31, 2007, the Cupertino, Calif.-based company recorded net income of $1.7 million, or $0.17 per share, compared with a net loss of $916,000, or $0.10 per share, in the same period last year.

Net revenues increased 27% to $10.9 million, compared with $8.7 million in the fourth quarter of 2006.

During the quarter, the company said it received new and renewed business from such customers as AIG, Brick Warehouse LP and Rogers Communication.

The small cap reiterated its previous announcement on Dec. 12, 2007, that Rocket Software, Inc., a privately held corporation, is acquiring NetManage. The small cap noted however that the due diligence has been completed for the acquisition and that more time will be required to syndicate the financing.

Shares of NetManage (NETM) popped 13.02%, or $0.66, to $5.73 in pre-market trading. Shares of NetManage have been trading in the range of $3.60 to $6.99 for the past 52 weeks.

Software developer NetManage, Inc. (Nasdaq: NETM) reported this morning that Rocket Software, Inc. a privately held corporation, will purchase NetManage for $7.20 per share, or $69 million in aggregate.

Rocket’s offer represents a 95% premium over NetManage's closing share price of $3.69 on Dec. 11.

Shares of NetManage (NETM) rocketed 86.72%, or $3.20, to $6.89 at 10:38 a.m. ET. Shares of NetManage have been trading in the range of $3.60 to $5.92 for the past 52 weeks.

The following small-cap companies are making news in after-hours trading Monday:

American Science and Engineering, Inc. (Nasdaq: ASEI) reported revenues at $45.9 million for the fourth quarter ended March 31, up 13% from the previous year's quarter. Net income was $0.60 per share, up $0.09 from the comparable period in 2006. Billerica, Mass.-based American Science, a supplier of X-ray inspection systems, was up $2.77, or nearly 6%, in after-hours trading, at $50.75.

The Wet Seal Inc. (WTSLA) said its president and CEO Joel Walter will step down from his positions on Feb. 1, 2008, when his current agreement is set to expire. Foothill Ranch, Calif.-based Wet Seal is an apparel retailer geared to young women. The company will release its first-quarter earnings on Wednesday. Shares of Wet Seal were little changed after the announcement, down nearly $0.03 at $5.72.

Interim study results from the BRITE trial in major depression, presented today at the annual meeting of the American Psychiatric Association, suggest that Aspect Medical Systems' (Nasdaq: ASPM) EEG-based research technology is a "significant predictor of patient response to treatment of depression with a selective serotonin reuptake inhibitor (SSRI) after one week of treatment," the company said. The Norwood, Mass.-based company, which specializes in brain monitoring technology, had planned a conference call for 5:00 p.m. ET. BRITE, an acronym for Biomarkers for Rapid Identification of Treatment Effectiveness, presented the findings at the APA meeting in San Diego. In after-hours trading, shares of Aspect Medical were down $0.11 at $15.66.