BEFORE THE OPEN (Updated throughout the hour)******
Cymer (CYMI) 33.98: Supplier of excimer light sources used in semiconductor manufacturing announces an approximate 9% reduction in worldwide work force as part of its previously announced cost-reduction program; trimming headcount from about 925 employees to 845 employees worldwide; see press release.
Oracle Corp (ORCL) 17.17: Oracle Software India Ltd., a subsidiary of Oracle Corp, announces that Tata Consultancy Services (TCS), Asia's largest global software and services company, is implementing the Oracle E-Business Suite to optimize its global operations and further enhance customer responsiveness; see press release.
CacheFlow (CFLO) 7.02: Provider of content-smart networking solutions announces that Robert Verheecke has been named Senior Vice President and Chief Financial Officer; as CFO; prior to joining CacheFlow, Verheecke spent 3 years developing early stage Internet-focused companies; see press release.
Orbotech Ltd. (ORBK) 37.60: Reports Q1 earnings of $0.65 a share, $0.01 better than the First Call consensus of $0.64, vs year-ago earnings of $0.50; revenues rose 27.4% to $104.87 mln from a year-ago of $82.33 mln. "... in view of the current uncertainty throughout the business world and the resulting reduced visibility, the company is taking measures to deal with the possibility of little or no growth in the second quarter year over year, and will continue to manage its business with prudence and to take precautionary measures such as paring back certain operational and other expenses and monitoring its inventory levels closely," said CEO; see press release.
Check Point Sftwr (CHKP) 69.64: CIBC Wrld Mkts initiates coverage with a BUY rating and price target of $90 as firm believes that CHKP is better insulated than most companies in the technology sector and will weather the storm relatively well; although the recent slump in technology spending may slow the rate of growth of Internet connectivity and e-business, firm thinks Internet security products and services are mission-critical for most IT managers.
ICN Pharm (ICN) 26.85: Research-based pharmaceutical company reports Q1 earnings of $0.26 a share, $0.01 better than the First Call consensus of $0.25, vs year-ago earnings of $0.34; revenues rose 3.4% to $198.97 mln from a year-ago of $192.34 mln; Q1 2000 North American revenues increased 42% to $42 mln from the year-ago quarter, benefiting from strong gains in sales of skin care products; see press release.
Devon Energy (DVN) 54.85: Reports Q1 earnings of $2.65 a share, $0.26 better than the First Call consensus of $2.39, vs year-ago earnings of $0.80; revenues rose 82.6% to $1.02 bln from a year-ago of $0.56 bln; says upside Q1 results were spurred by sharply higher natural gas prices coupled with an increase in total oil, gas and natural gas liquids production; see press release.
Wendy's (WEN) 25.55: Bear Stearns downgrades to ATTRACTIVE from BUY based on increasing concerns about operating costs in the quick service sector of the restaurant industry. Wendy's operating profit margins declined by 200 basis points in Q1 and could be more problematic going forward given the likelihood of higher beef costs.
WorldGate Comms (WGAT) 4.50: Reports Q1 loss of $0.45 a share, $0.02 better than the First Call consensus of ($0.47); revenues rose 159.4% to $4.08 mln from a year-ago of $1.57 mln. Company also issues upside preannouncement for Y01; expects loss of $1.65-1.70 vs current First Call EPS estimate of ($1.70); see press release.
Koninklijke Philips (PHG) 31.95: Goldman Sachs upgrades to RECOMM LIST from MARKET OUTPERFORM based on the shares' unusually heavy P/E discount to their peer group in semiconductor-land (16x firm's 2002 estimates vs 51x for the peer group), 30% underperformance vs peer group since December 2000, and firm's calculation of sum of the parts valuation.
Allegiance Telecom (ALGX) 20.35: First Union Sec upgrades to STRONG BUY from BUY rating with price target of $29; says no catalyst from yesterday's investor meeting other than renewed comfort with 2001 estimates; feels that ALGX shares are compelling at an implied $1,542 per line based on yr-end target of 1.17 mln lines installed; balance sheet is strong and company is overfunded by an estimated $150 mln on its 36-month plan.
Newell Rubbermaid (NWL) 27.34: Reports Q1 earnings of $0.18 a share, $0.01 worse than the First Call consensus of $0.19, vs year-ago earnings of $0.28; revenues fell 1.1% to $1.61 bln from a year-ago of $1.63 bln. Company warns that it expects Q2 EPS of $0.37-0.42 vs current First Call EPS estimate of $0.44; for full year 2001, expects $1.50-1.65 vs previous guidance of $1.70-1.80. Also, NWL will reduce worldwide headcount by approximately 6% or 3,000 people over next 3 years and consolidate duplicate manufacturing facilities; see press release.
Liberty Financial (L) 42.03: Company has agreed to sell Keyport Life Insurance and Independent Financial Marketing Group units, its annuity and bank marketing businesses, to Sun Life Financial Services of Canada for approximately $1.7 bln; see press release.
Verizon Comms (VZ) 56.90: Company has agreed to amend its credit agreement with Genuity (GENU) to increase from $500 million to $900 million the principal amount that the company may borrow from Verizon; Verizon has also agreed to provide Genuity with credit enhancements to readily access long-term sources of capital with maturities up to five years; see press release.
Texas BioTech (TXB) 7.60: Company's Board of Directors authorizes a stock repurchase program to buy up to 3 million shares, or approximately 7%, of company's outstanding common stock over an 18 month period; believes the current price of its common stock represents an attractive investment as the current price does not reflect the strength of its product pipeline and commercial opportunities; see press release.
Maxygen (MAXY) 15.25: Company to receive a milestone payment from Pfizer (PFE) developing an improved second generation manufacturing process for a Pfizer product; this is Maxygen's second major process improvement for Pfizer, developed through its MolecularBreeding directed molecular evolution technologies; see press release.
Handspring (HAND) 17.50: Lehman Brothers downgrades to BUY from STRONG BUY rating and price target of $28 based on valuation and view that pricing at the low end of the product spectrum will become more aggressive as PALM and HAND seek to move inventory through the channel. With no new catalyst over the next several months, firm believes that handheld computing stocks could undergo near term pressure.
Philip Morris (MO) 51.01: Philip Morris announced in an 8-K filing that Kraft Foods Inc. plans to issue 280 mln shares of class A common stock with an estimated price range of $26 to $31 per share in its IPO. Offering would raise up to $8 bln, well above the $5 bln the company hoped to raise when it filed for an IPO in March. Deal set to be the 2nd-largest IPO in U.S. history; see press release. |
