Decliners for Tuesday
Alcatel (ALA: news, msgs, alerts) slid 6.9 percent after the telecommunications equipment giant said it plans to cut 1,100 positions in its U.S. operations, 800 of which are full-time jobs. This is less than 5 percent of Alcatel's U.S. workforce. Shares closed down $2 at $27.
Ariba (ARBA: news, msgs, alerts) plummeted 32 percent on news that the company would cut one third of its 2,100 workers. Second-quarter revenue is also expected to come in at half of current expectations. The purchasing software firm also canceled its proposed merger with Agile Software, which was initially valued at $2.55 billion. Shares closed down $2.06 at $4.43. See full story.
Bottomline Technologies (EPAY: news, msgs, alerts) stumbled 51 percent after the Portsmouth, N.H., electronic billing technology and services firm warned that third-quarter results would miss Wall Street expectations. The company forecast a pro forma loss, excluding items, of up to 35 cents a share on revenue of $18 million. Analysts polled by First Call/Thomson Financial were looking for a loss of 5 cents a share. Bottomline expects to cut costs in response to the current slowdown in information technology spending and capital availability. As of March 31, Bottomline said it has cash and short-term investments of more than $12 million. Shares closed off $3 at $2.90.
Broadvision (BVSN: news, msgs, alerts) dove 34 percent after the company lowered its first-quarter sales and earnings projections and said it will cut 325 employees, or 15 percent of its workforce. Due to the weakening economy, the company expects revenue of $85 million to $90 million and a pro-forma loss of 14 to 16 cents a share. Analysts were expecting a profit of 2 cents. Shares closed off $1.53 at $2.96.
Celgene (CELG: news, msgs, alerts) dropped 15 percent after analyst Michael King at Robertson Stephens told clients in a research note that he learned from investigators that the release of the data for a trial using Celgene's Thalomid, a treatment for multiple myeloma, has been delayed for 6 months. However, King still expects the data to be "very positive, and maintains that Thalomid is on track for U.S. Food & Drug Administration approval for Myeloma in the first quarter 2002. The company could not be immediately reached for comment. Shares closed off $3.43 at $18.81.
Comdisco (CDO: news, msgs, alerts) plunged 64 percent after the company drew down $880 million from loans, mainly with the aim of meeting short-term debt obligations, the technology services firm said Tuesday. Comdisco added that it's retained investment bank Goldman, Sachs and consultants McKinsey & Co. to review its strategic alternatives. "With adequate cash on hand, we are able to retire the company's commercial paper obligations on an orderly basis, fund our ordinary course working capital requirements, and address short-term liquidity needs," Chief Executive Officer, Norman Blake, said in a statement. Shares closed off $4.53 at $2.55.
Concord Communications (CCRD: news, msgs, alerts) fell 31 percent after the company warned that it would report a first-quarter loss of about 18 to 20 cents per share on revenue of $20 to $21 million. Analyst surveyed by Multex had been expecting a profit of 5 cents per share on sales of $24.8 million, on average. He Internet infrastructure software firm blamed the expected shortfall on the delay of "numerous" deals, which resulted from the widespread economic downturn. Jack Blaeser, Concord's CEO, attempted to reassure investors by pointing out the company had no debt, had cash reserves of $61 million and a "diverse" customer base. Blaeser says the company's goal is to return to profitability within 2001. Shares closed off $2.43 at $5.37.
Documentum (DCTM: news, msgs, alerts) dropped 16 percent after the company forecast first-quarter revenue of $43 million to $46 million, with license revenue of $19 million to $21 million, resulting in a net loss for the period. Analysts were looking for earnings of 7 cents a share. The shares closed down $1.53 at $8.
E.piphany (EPNY: news, msgs, alerts) lost 25 percent after the company projected a first-quarter loss of 40 cents a share on revenue of about $38 million. Analysts polled by First Call/Thomson Financial were looking for a loss of 9 cents a share. The shares closed off $2.46 at $7.28. See full story.
Entrust (ENTU: news, msgs, alerts) plunged 42 percent after the company lowered its first-quarter earnings estimate due to the weakening economy and slowing sales. The maker of security software now expects to lose between 32 and 34 cents a share, whereas it was expecting a gain between 1 and 2 cents a share. Analysts were also expecting a gain of 2 cents a share. Revenue is now expected to fall between $31 million and $32 million, lower than the previous estimate of $50 million to $51 million. Shares closed off $3.03 at $4.25.
FileNet (FILE: news, msgs, alerts) dropped 28 percent after the Costa Mesa, Calif., provider of Web content management software warned that first-quarter results would miss Wall Street expectations. The company said it expects to report revenue of $81 million to $84 million for the period, below last year's equivalent total of $92.8 million. FileNet attributed the weakness to delayed purchases by several of its large enterprise customers. The company added that, due to the current economic uncertainty, it has limited visibility going forward. Shares closed off $4.25 at $10.93.
Foster Wheeler (FWC: news, msgs, alerts) fell 16 percent after the Clinton, N.J., diversified industrial services firm announced that Richard Swift, its chairman, president and CEO, would retire by the end of 2001. The company said both internal and external candidates are being considered and that executive search firm Spencer Stuart is conducting the search. Foster Wheeler said it expects Swift's retirement to result in a second-quarter charge of 4 cents a share. The shares closed off $2.65 at $13.90.
Friede Goldman Halter (FGH: news, msgs, alerts) lost 61 percent after the Gulfport, Miss., maker of offshore energy equipment disclosed the filing of its form 10-K with the Securities and Exchange Commission has been completed. In addition, citing the "complexity and inherent uncertainty in the resolution of the issues currently affecting the company," Friede Goldman said it would reschedule a conference call set for today. The company disclosed on March 16 that it hadn't made a semi-annual interest payment on its 4.5 percent convertible subordinated notes due 2004. Friede said it expects to make this payment within its 30-day grace period. Shares closed off $1.48 at 94 cents.
Harmonic (HLIT: news, msgs, alerts) dropped 8.6 percent after the company said it expects a first-quarter loss of 45 to 55 cents a share on revenue of $39 million to $41 million. Analysts were expecting a loss of 29 cents a share. Actual results will be reported on April 25. Shares closed off 37 cents at $4.
Hewlett-Packard (HWP: news, msgs, alerts) slumped 5.2 percent after analyst Kim Alexy at Prudential Securities lowered her estimates for the company, citing expectations for "a more prolonged slowdown in domestic IT spending than previously thought." Alexy feels risks are increasing that this weakness could spread to Europe, which accounts for about one-third of H-P's revenue. She dropped her 2001 EPS estimate to $1.39 from $1.60, and his 2002 forecast to $1.65 from $1.90. She reiterated her "accumulate" rating, but cut her price target to $34 from $37. The shares closed off $1.51 at $27.41.
Inktomi (INKT: news, msgs, alerts) sank 55 percent after the company announced plans to cut 25 percent of its workforce as financial results continue to suffer. Inktomi also warned investors about its second quarter, saying it now expects a loss of 23 to 25 cents a share on revenue of $36 million to $38 million. Analysts were expecting a loss of 4 cents a share. The shares closed off $3.43 at $2.79. See full story.
Jack in the Box (JBX: news, msgs, alerts) fell 11 percent after the San Diego, Calif., drive-thru hamburger firm said it expects to meet the lower end of expectations for earnings of 46 to 50 cents a share in the second quarter. The company said the weakness was primarily due to higher-than-expected utility costs. Chairman and CEO Robert Nugent told analysts at a Banc of America-hosted presentation that the company also expects to meet the lower end of its forecast for earnings of $2.20 to $2.30 a share for the year. Shares closed off $3.42 at $26.49.
Kronos (KRON: news, msgs, alerts) slumped 14 percent after the company said it expects earnings in the range of 6 to 8 cents a share, while analysts had been expecting a profit of 23 cents a share. Revenue will be in the range of $66 million to $67 million. The company said the slowing economy is pushing customers to delay buying decisions. In addition, the company expects to take a charge of about 14 cents to 15 cents a share, related to restructuring. Shares closed off $4.31 at $26.12.
Level 3 Communications. (LVLT: news, msgs, alerts) lost 20 percent after the company unveiled plans to slash roughly 325 jobs, or 6 percent, of its work force over the next few weeks, the company said Tuesday. CEO James Crowe said, "Today's announcement is consistent with our continuing efforts to ensure we are well positioned both financially and operationally to capitalize on market opportunities as they develop." He also said that he expects the total employment to grow within the next year. The Broomfield, Colo.-based company builds fiber-optic networks. Shares closed off $3 at $12.06.
Montana Power (MTP: news, msgs, alerts) sank 17 percent after the Butte, Mont., energy firm delayed the filing of its Form 10-K with the Securities and Exchange Commission pending the resolution of an accounting treatment of a previously-recorded loss provision. If the loss provision is reversed, Montana Power said it would add 4 cents a share to year-end earnings. Shares closed off $2.37 at $11.48.
Motient (MTNT: news, msgs, alerts) lost 41 percent despite news that the company has received up to $50 million in funding from Rare Medium Group (RRRR: news, msgs, alerts) through the purchase of exchangeable notes. Rare Medium also said it's had constructive discussions with Motient about strategic options. Motient also said it has taken steps to "right size our business" by reducing its workforce by 20 percent. Rare Medium shares dropped more than 18 percent. The shares closed off 46 cents at 68 cents.
National Instruments (NATI: news, msgs, alerts) fell 8.1 percent after the company said it expects first-quarter revenue of about $108 million, falling short of the current consensus estimate of $112 million. The shortfall in revenue was attributed to the overall slowdown in the economy. Excluding a foreign exchange loss, earnings will be in the range of 27 to 29 cents a share. Analysts currently expect a profit of 29 cents a share. Full-year earnings will be in the range of $1.06 to $1.22, while analysts had been expecting a profit of $1.28. Shares closed off $2.56 at $29.06.
New Focus (NUFO: news, msgs, alerts) dipped 11 percent after the company said it expects first-quarter revenue of $38 million to $41 million, in line with an early March projection. The company also announced that Paul Smith has resigned as vice president and general manager for a portion of its telecom business. Shares fell $1.28 to close at $10.21.
PSINet (PSIX: news, msgs, alerts) fell more than 14 percent after the company disclosed that its bankers are working on strategies that will likely lead to bankruptcy proceedings for the cash-hungry Internet hosting company. In a filing to the SEC to get an extension for the 2000 results, PSINet said it has told regulators that the company's some $254 million cash, equivalents and cash expected from asset sales as of March 30 "are not expected to be sufficient to meet the Company's anticipated cash needs absent successful implementation of one or more financial or strategic alternatives currently under consideration by the Company." PSINet also said that the efforts by its bankers "are likely to involve the Company's reorganization under the federal bankruptcy code. Even if the Company were successful in any of these efforts, it is likely that the Company's common stock will have no value, and that the Company's indebtedness will be worth significantly less than face value." Shares were off 3 cents at 18 cents.
Rainbow Technologies (RNBO: news, msgs, alerts) dropped 18 percent after the company said it expect a loss of between 7 cents and 10 cents a share. Previously, the company anticipated a profit of 6 cents, while the three analysts polled by First Call expected a profit of 5 cents. The company cited lower sales due to order delays. Shares closed off 93 cents at $4.25.
Redback Networks (RBAK: news, msgs, alerts) lost 17 percent after the company warned that it expects lower first-quarter revenue along with restructuring and other one-time charges totaling $53 million in the first half. The provider of networking and fiber-optic technologies said revenue for the first quarter would total $85 million to $90 million. Redback also plans to cut 150 workers, or 12 percent of its staff. Shares fell $1.93 to close at $9.77.
SAVVIS Communications (SVVS: news, msgs, alerts) dove more than 33 percent after the Herndon, Va., provider of Internet access services disclosed it has filed with the Securities and Exchange Commission for an automatic 15-day extension to file its Form 10-K annual report. The company, which is majority-owned by troubled financial data firm Bridge Information Systems, attributed the delay to the "substantial time required for additional audit work" and preparation related to the bankruptcy of Bridge, which is also SAVVIS' largest customer. SAVVIS, however, said it expects its loss for the year ended Dec. 31 to total $1.83 to $1.95 a share, in line with current Wall Street expectations. The company also expects revenue to maintain its "upward trend" in the fourth quarter. Shares closed off 12 cents at 25 cents.
Seven Seas Petroleum (SEV: news, msgs, alerts) fell 22 percent after the Houston gas and oil exploration firm reported a fourth-quarter loss of $5.9 million, or 16 cents a share, narrower than its year-ago loss of $6.8 million, or 18 cents a share. Revenue rose to $3.1 million in the latest three months from $2.6 million a year ago. The company also has funding issues. In the absence of additional financing, its auditor Arthur Andersen LLP has stated that the company's current financial position raises "substantial doubt about the company's ability to continue as a going concern." Seven Seas hired CIBC World Markets as an advisor to get funding. Shares closed off 65 cents at $2.30.
Sherwin-Williams Co. (SHW: news, msgs, alerts) retreated 21 percent after Credit Suisse First Boston cut its rating on the Cleveland paint products firm to "hold" from "buy." Further details about the reasons for the downgrade weren't immediately available. Shares gave back $5.33 to close at $20.31.
SynQuest (SYNQ: news, msgs, alerts) plunged 70 percent after the provider of supply chain management software said late Monday that it expected to report a fiscal third-quarter loss of 12 to 14 cents per share, while analysts polled by Multex had pegged losses at 4 cents per share, on average. The company blamed the expected shortfall to the delay of "several" new customer contracts. SynQuest added that revenue for the period is anticipated to be $6.8 million to $7 million, compared to expectations of about $10.1 million. Meanwhile, the company said it remained "comfortable" that it would meet the consensus breakeven projection in its fourth quarter. Shares closed off $3.06 at $1.31.
TriPath Imaging (TPTH: news, msgs, alerts) lost 35 percent in midday action. After Monday's closing bell, the Burlington, N.C., provider of cancer screening products disclosed that it's in talks with the Food and Drug Administration regarding its application to expand claims for its AutoPap primary screening system. TriPath is looking to expand the claims to include the screening of AutoCyte PREP System thin-layer preparations on the AutoPap. In addition, TriPath said it has brought the assertions of a former employee questioning the use of the AutoPap to screen thin-layer preparations to the FDA's attention. The company said it has investigated these claims and found them without merit. However, the FDA plans to conduct its own investigation prior to completing review of TriPath's PMA supplement. "Given the essential role that the AutoPap and the AutoCyte PREP play in improving the quality of healthcare, we wanted to bring this to the FDA's attention," said Paul Sohmer, the company's chairman, CEO and president, in a press release. "We will cooperate fully with the FDA in its inspection." Shares closed off $2.12 at $3.87.
Williams (WMB: news, msgs, alerts) dipped 7.8 percent after the company said it expects to report an upside profit surprise when it releases its first quarter results on April 26. Williams, which, cited its trading and natural gas E&P unit as the reasons behind the improved results, said it expects to report earnings of 65 to 75 cents a share and estimates that its full year EPS will come in at $1.75 to $1.95 a year. The revised estimate for the year represents a 15-cent increase to previous guidance, Williams said. Analysts polled by First Call/Thomson Financial expected Williams to earn 38 cents a share, on average. For the year, Williams was expected to earn $1.44. Shares closed off $3.40 at $40.15.
Xerox (XRX: news, msgs, alerts) dropped 18 percent after the company said it would delay filing its annual report with federal regulators until it completes an internal review of its accounting procedures. KPMG, Xerox's accounting firm, has said a "fuller review is needed for it to satisfy its auditing responsibilities," according to Xerox. The struggling copier and printer maker has previously acknowledged accounting irregularities in Mexico, but the company has said accounting problems are not widespread. Shares closed off $1.05 at $4.95.
XO Communications (XOXO: news, msgs, alerts) sank 43 percent after UBS Warburg analyst Glenn Waldorf, who assumed coverage of a number of competitivie local exchange carriers, or CLEC, at the firm, rated the stock a "hold" with a price target of $9. The firm had rated XO a "strong buy." In a research note to clients, Waldorf referred to XO as an "ambitious international CLEC with strong management with rapid cash burn and debtload that represent significant risks." Waldorf also assumed coverage of Winstar Communications (WCII: news, msgs, alerts) , reducing the firm's rating on the stock to "hold" from "strong buy" and setting a price target of $1. Winstar is plunging 47 cents, or 53.6 percent, to 41 cents, in heavy trading of 18.9 million shares. The company delayed filing its 10-K with the Securities and Exchange Commission Monday, saying it's currently in negotiations about "material transactions." Shares closed off $2.25 at $2.96.
ZOLL Medical (ZOLL: news, msgs, alerts) plummeted 47 percent after the company warned that it would miss Wall Street expectations for its second-quarter results. The Burlington, Mass., medical device firm forecast revenue of $25 million to $26 million for the period and said that earnings would fall to 7 to 11 cents a share, "substantially below" the average estimate of analysts polled by First Call/Thomson Financial for a profit of 30 cents a share. The company attributed the shortfall to weak orders, which it said reflect customer uncertainty about future funding levels and the economy. Shares closed off $15.56 at $17.43.
Michael Baron is a reporter for CBS.MarketWatch.com based in New York.
Jason Margolis is a reporter for CBS.MarketWatch.com in San Francisco. |
