Diamonds and Dogs
7/23/2013Computer Task Group Inc. (CTG)
Computer Task Group is crashing today, down 24.14% at $18.16. The information technology company saw its shares fall after announcing earnings for the second quarter. Computer Task management announced a revenue of $107.1 million, missing analysts' expectations of $111.9 million. Furthermore, gross margin was 40 basis points lower than the same quarter last year and net margin fell 10 basis points year over year. The company did manage to meet Wall Street's forecast for an EPS of $0.24. Computer Task shares are still well above their 52-week low of $14.10.
Sourcefire Inc. (FIRE)
Sourcefire shares were on fire today, up 27.76% at $75.48. The cyber security company saw its shares skyrocket after news of a buyout by Cisco for $2.7 billion. The all-cash deal values Sourcefire at $76 per share and represents a premium of 29% to its closing price on Monday. The deal is expected to close in the second half of 2013 and will likely be slightly dilutive to Cisco's GAAP earnings in 2014. "Sourcefire aligns well with Cisco's future vision for security and supports the key pillars of our security strategy," said Cisco's vice president of corporate development Hilton Romanski. Sourcefire shares hit a new 52-week high of $75.95 intraday.