CSCO-Pre Market trading
Cisco rallies after sizzling Q4
Tech giants gaining; Software.com, Phone.com hook up
By Tomi Kilgore, CBS.MarketWatch.com
Last Update: 9:07 AM ET Aug 9, 2000 NewsWatch
Latest headlines
NEW YORK (CBS.MW) - Shares of Cisco Systems powered higher in pre-market trading Wednesday after the high-tech bellwether posted better-than-expected fiscal fourth-quarter results.
Cisco (CSCO: news, msgs) bulled 4 1/2, or 6.9 percent higher, to 70. After Tuesday's closing bell, the networking gear maker said it had profits from operations of 16 cents a share, compared with the 10 cents a share it earned in the year-earlier period. See full story. The consensus analyst estimate compiled by First Call was EPS of 15 cents. Revenue rose 61 percent over last year to $5.72 billion.
Among other high-tech titans seeing early activity, Intel (INTC: news, msgs) tacked on 1 11/16 to 63 5/16, Microsoft (MSFT: news, msgs) was unchanged at 74 1/8, Oracle (ORCL: news, msgs) rose 1 1/8 to 84 1/8 and Sun Microsystems (SUNW: news, msgs) advanced 2 1/8 to 114.
Applied Materials (AMAT: news, msgs), the chip equipment maker expected to reveal its fiscal third-quarter results after Wednesday's closing bell, rose 2 1/8 to 72 11/16 over the Island ECN.
Separately, the Cisco said it was losing Don Listwin, its No. 2 executive. Listwin is leaving to become the president and chief executive of the new company forged from the merger of Phone.com and Software.com.
Software.com (SWCM: news, msgs) was driven 17 1/4, or 16 percent, to 125 and Phone.com (PHCM: news, msgs) gained 2 15/16 to 81. Late Tuesday, the companies said they agreed to merger in deal that some press reports valued at about $6.4 billion. See full story. Under terms of the deal, Phone.com and Software.com shareholders will each own "approximately" 50 percent of the combined company. Each Software.com shareholder will get 1.6015 Phone.com shares for each of their Software.com shares. Based on Tuesday's closing prices, SWCM would be valued at $125.02 a share.
Targeted Genetics (TGEN: news, msgs) jumped 2 5/16, or 23 percent, to 12 7/16. The company said it has entered into a development and commercialization collaboration agreement with Biogen (BGEN: news, msgs), which could be worth up to $125 million, not including royalty payments. Under the three-year deal, TGEN will work to develop four new gene therapy products for Biogen, as well assist Biogen in developing an existing gene therapy. As a result, Targeted Genetics is slated to receive an upfront payment, "significant" milestone payments and research and development funding, which includes a line of credit and a future equity stake.
Separately, Targeted Genetics said it lost 12 cents a share in its second quarter, missing the average analyst estimate compiled by First Call by 2 cents.
Register.com (RCOM: news, msgs) is roaring 2 1/2, or 14 percent higher, to 21. The domain name registrar said that it would withdraw its secondary stock offering of 4 million shares, citing "unfavorable" market conditions. "We believe that the current market is not properly valuing register.com," said Richard Forman, Register's president and chief executive. The stock, which began public trading in early March of this year, hit a new low of 18 1/4 in intraday trading on Tuesday. The stock's high was 116. On June 27, the stock fell 8.9 percent to 28 after the company said it would offer 4 million shares to the public, of which 500,000 were coming directly from the company. The balance would come from certain shareholders. |
