Ciena, Intersil, Motorola, Scient
By Michael Baron & Jason Margolis, CBS.MarketWatch.com
8:12 AM ET Dec 7, 2000
U.S. stocks to watch
Ciena (CIEN: news, msgs) reported pro forma fourth-quarter earnings of $41.3
million, or 14 cents a share, up from last year's equivalent profit of $4.7 million,
or 2 cents a share, and two cents ahead of the average estimate of analysts
polled by First Call. Revenue rose in the latest three months to $287.6 million
from $141.4 million in the same period a year earlier. The company also said it
has secured new contracts with Dynegy (DYN: news, msgs) and Broadwing
(BRW: news, msgs) . For fiscal 2001, Ciena raised its revenue guidance,
projecting growth of 75 to 85 percent. The shares closed Wednesday at $95.38,
down 4.4 percent.
Cox Radio (CXR: news, msgs) , the country's fourth largest radio chain, said that
it will sell its WHOO-AM Orlando station to ABC Radio for $5 million in cash.
ABC -- which is owned by The Walt Disney Co. (DIS: news, msgs) -- plans to
broadcast Radio Disney, a 24-hour format designed for children, in the home
city of Disney World. Cox said that it will use the proceeds of the sale to focus
on long-term strategic operations. Cox shares lost 81 cents to $22.87 on
Wednesday, while Disney shares rose 75 cents to $31.43.
Internet messaging provider Critical Path (CPTH: news, msgs) said that Chief
Financial Officer Mark Rubash has retired for personal reasons. Rubash is
stepping down following a leave of absence due to a family illness. Lawrence
Reinhold will replace Rubash as executive vice president and CFO, effective
immediately. Reinhold brings about 20 years of finance experience from
PriceWaterhouseCoopers. Shares of the San Francisco-based company, closed
off $1.06 to $27.94. See full story.
CSG Systems International (CSGS: news, msgs) said 2001 earnings will be
between $1.98 to $2.05 a share on revenue of $475 million to $495 million.
Analysts surveyed by First Call currently expect earnings of $2.01 a share, on
average. According to a company statement, CSG will increase its investment in
research and development in 2001 and sales and general administrative dollars
will increase to support international efforts. CSG provides customer care and
billing systems for communications companies. Shares closed down $1.06 to
$48.88.
Hasbro (HAS: news, msgs) said that its fourth-quarter and full-year results would
be below expectations. The toymaker said full-year earnings will be "at best"
break-even, and that it could record a loss of between 10 cents per share to 20
cents per share. Analysts polled by First Call were expecting a gain of 23 cents a
share. The company blamed a worldwide decline in trading card games and
weakness in the U.S. toy group for the revision. Hasbro also said it sold Hasbro
Interactive and Games.com to Infogrames Entertainment SA. Shares of Hasbro
fell 19 cents to $11.56 on Wednesday.
Intersil (ISIL: news, msgs) said it expects to meet Wall Street expectations for
fourth-quarter adjusted earnings of 26 cents a share. However, the company said
revenue would be sequentially flat, which is 5 percent below expectations. The
company attributed the revenue shortfall to soft bookings as customers adjust
their backlog to balance inventory levels. In addition, Intersil said revenue for the
first quarter would be flat on a sequential basis. The shares added $4.12 to $29.
Motorola (MOT: news, msgs) said it won't meet its previous earnings and
revenue guidance for the fourth quarter. Revenue for the period is now expected
to be $10 billion, compared with previous expectations of $10.5 billion. The
company cut its expectations for earnings to 15 cents a share from 27 cents a
share. For the first quarter of 2001, EPS is anticipated to be 12 cents on revenue
of $8.8 billion. The average analyst EPS estimate compiled by First Call for the
first quarter is currently 23 cents. The company blamed "slowing market
conditions in the worldwide semiconductor industry, believed to be due to
inventory adjustments by customers," and delays in achieving cost reductions in
the production of wireless phones for the lowered guidance. The shares closed
down $1.19 at $17.81.
Scient (SCNT: news, msgs) lowered its third-quarter earnings and revenue
expectations, and said it will slash its work force. The company expects revenue
of $80 million and a loss of 16 cents a share, before charges. Analysts surveyed
by First Call currently expect earnings of 8 cents a share. San Francisco-based
Scient will also cut 460 jobs and close its Silicon Valley and Austin, Texas,
offices. For the restructuring, the company will take a charge of $40 million to
$45 million in the quarter. Scient said it expects to save $60 million in 2001 after
the changes. The shares closed off 69 cents at $4.50. See full story.
Standard & Poor's announced a number of changes to its indices. Jack Henry &
Associates (JKHY: news, msgs) , ChoicePoint (CPS: news, msgs) , Investors
Financial Services (IFIN: news, msgs) will replace OfficeMax (OMX: news,
msgs) , Warnaco Group (WAC: news, msgs) , and PSS World Medical (PSSI:
news, msgs) in the S&P MidCap 400 index. The companies are being removed
for lack of representation. JKHY, CPS and IFIN will be replaced in the S&P
SmallCap index by Advanced Energy Industries (AEIS: news, msgs) , Varian
Semiconductor (VSEA: news, msgs) and Genesco (GCO: news, msgs) . Also,
S&P SmallCap 600 index components BISYS Group (BSYS: news, msgs) ,
Arthur J. Gallagher (AJG: news, msgs) , and Expeditors International (EXPD:
news, msgs) will swap places with S&P MidCap 400 components MagneTek
(MAG: news, msgs) , Wellman Inc. (WLM: news, msgs) and Arnold Industries
(AIND: news, msgs) . |
