Almost 30 warnings since market close last night:
Ariba (ARBA) 6.11 -0.61: CIBC World Markets downgrades to HOLD from BUY based on price; stock's rally on 7/2 follows lessening of fears of a negative earnings preannouncement; firm believes the real issue for the Q is how much the cash drain accelerated and suspects that even if ARBA somehow manages to hit the numbers, it will get there in an unorthodox manner; firm views the rally as unusual and an opportunity to lighten positions.
BEFORE THE OPEN (Updated throughout the hour)******
Internet Security Sys (ISSX) 50.17: Merrill Lynch downgrades to near-term NEUTRAL from near-term ACCUMULATE after ISSX's announcement yesterday of a revenue and earnings shortfall for Q2; on a positive note, ISSX expects modest Q/Q growth for its managed security services; also broadened its customer base, closing 25% more deals in Q2 vs Q1; firm maintains long-term Buy rating as ISSX remains one of top two security names while it works through tough environment.
Bell Micro (BELM) 10: Yesterday evening, company warns for Q2 (Jun) will be a loss of $0.10, current First Call estimate is $0.02 profit; revenues are expected to be approximately $450 mln; demand for commodity semiconductors, disk drives and peripherals was disappointing; the normal strength expected in the later part of the quarter did not materialize, with lower than planned sales in all geographies.
Nova Measuring (NVMI) 5.90: Producer of integrated process control systems warns Q2 (Jun) will be a larger-than-expected loss, current First Call estimate is a loss of $0.17; revenues will be significantly below previous estimates; cites unprecedented sharp reduction in capital spending in the semiconductor industry.
Creative Tech (CREAF) 8.33: Company warns that Q4 revenues will be $234 mln vs estimate of $260 mln. "The back half of the quarter was much slower than anticipated in our European and Asian regions, with Europe being particularly soft in June," said management. "Combined with a further downturn in the worldwide system builder market, we fell short of our revenue goal.".
Payless Shoe (PSS) 64.58: Company warns that Q2 will be $1.45-1.50 vs current First Call EPS estimate of $2.44. Company says the sales improvement that had been anticipated for June has not materialized and sales are running considerably below expectations. Moreover, because it is near the end of the retailing summer season, the company has taken significant price reductions to clear seasonal product and to maintain fresh and appropriately balanced inventory levels going into the Fall season.
NICOR (GAS) 39.25: Company warns for Q4, expecting $0.55-0.60 vs current First Call EPS estimate of $0.70. Natural gas deliveries for Nicor's gas distribution segment were negatively impacted by weather that was about 20% warmer than normal. Also, the containerized shipping segment continued to be adversely impacted by a slowdown in Caribbean tourism and fewer island construction projects. Nicor's retail energy marketing joint venture also experienced lower than anticipated results.
BroadVision (BVSN) 4.93: Company warns for Q2, expecting loss of $0.17-0.20 vs current First Call EPS estimate of ($0.11); cites the continued uncertainties surrounding the current IT spending environment.
Check Point Sftwr (CHKP) 50.95: Company warns for Q2, expecting revenues of $140-142 mln vs estimate of $152 mln; anticipates EPS of $0.32 for Q2 (current First Call EPS estimate is $0.32).
i2 Technologies (ITWO) 18.23: Company warns for Q2, expecting loss of $0.12 vs current EPS estimate of ($0.06). "Market conditions were much more difficult than we had anticipated this quarter - even more difficult than we experienced in the first quarter," said CEO. "These conditions prevented us from achieving what we believed were conservative estimates for the quarter.".
AFTER THE CLOSE (02-Jul-01)******
MapInfo (MAPS) 19.78 -2.22: Company warns for Q3, expecting EPS of about breakeven vs current First Call EPS estimate of $0.19; cites continued weakness in the United States economy; a slowdown in technology spending in Europe and Australia; the reduced level of IT spending in the telecommunications market; a lengthening in customers' decision cycles; and the negative impact of foreign exchange.
Tetra Tech (TTEK) 25.64 -1.56: Updates its guidance for Q3, based on the decision by Metricom (MCOM) to file for protection under Chapter 11 of the U.S. Bankruptcy Code, and to engage in restructuring discussions with its creditors; because of the charge for Metricom's doubtful account, the company estimates that it will report a loss of approximately $0.11 per share for Q3, assuming no recovery from the bankruptcy process.
After Hours Movers : Prices relative to 4 pm ET close... We have a number of earnings warnings tonight but none from a market bellwether. ISSX -16.68 continues to get hammered on its warning and sector peers VRSN -3.77 and CHKP -5.85 are lower in sympathy. Chemical manufacturer DD -1.31 also on the defensive after a negative pre-announcement. Others getting hit include RATL -3.45 and AMKR -1.93.
PC Connection (PCCC) 15.45 -0.55: Company warns for Q2; sees earnings of $0.05-0.07 vs. current EPS estimate of $0.15; company says gross margins are expected to be in the range of 10.75% to 11% of net sales compared to 11.71% in Q1; these lower gross margins are the result of intense competitive pricing in the context of lower overall demand levels; the company saw a shift to a lower margin product mix along with cautious corporate demand, which it anticipates will continue into the second half of the year.
DMC Stratex (STXN) 8.10 -1.90: -- Correction -- An earlier Short Story should have read Sutro & Co maintains BUY-SPECULATIVE rating on STXN; Tucker Anthny Sutro, which operates seperately from Sutro & Co, upgraded stock to STRONG BUY from BUY today.
MIPS Techs (MIPS) 15.05 -2.25: Company warns for Q4; sees revenues for the period of $14-$15 and EPS of approx. $0.00 vs current consensus estimates of $19.35 mln and $0.08.
Interface (IFSIA) 6.35 -1.15: Company warns for Q2; sees earnings of $0.03-0.05 vs. current EPS estimate of $0.10; cites the continued decline in the domestic economy and its effect on U.S. corporate confidence as inducing its commercial customers to delay projects, resulting in a more significant slowing of orders than previously experienced.
After Hours Movers : Prices relative to 4 pm ET close...Quite a few warnings in the late session. ISSX -15.17 getting crushed on its warning and sector peers VRSN -3.50 and CHKP -4.70 lower in sympathy. Chemical manufacturer DD -1.71 getting hit on a negative pre-announcement as well. Others getting hit include RATL -2.68 and AMKR -1.72.
IKOS Systems (IKOS) 7.19 -0.17: -- Update -- Company warns for Q3; sees loss of $0.45-0.50 vs. current EPS estimate of $0.08.
Multex.com (MLTX) 16.01 -0.24: Company warns for Q2; pegs revenues of approx. $24 mln (mean $30 mln); company sees loss for the qtr, compared to $0.10 profit anticipated by Wall Street. Looking out to Q3 and Q4, MLTX sees flat to slightly positive sequential revenue growth. Company to reduce payroll by 15% through headcount reductions and plans to withdraw from the Sage Online biz.
Oplink Comms (OPLK) 3.43 -0.32: Company warns for Q4; sees loss of $0.04-0.05 vs. current EPS estimate of ($0.01); cites continued softening in demand throughout the fiber optics industry.
Pivotal Corp (PVTL) 18.20 +1.14: Company warns for Q4; sees loss of $0.28-0.32 vs. current EPS estimate of $0.04.
Extensity (EXTN) 8.96 -1.14: Company warns for Q2; sees loss of $0.28 vs. current EPS estimate of ($0.27); company says the last two weeks of the quarter marked a dramatic change in the business climate whereby several major deals delayed to subsequent quarters.
Polycom (PLCM) 22.15 -0.94: Company warns for Q2; sees EPS of $0.12-$0.13 (mean $0.15); puts revenues at $83-$85 mln vs the $91 mln consensus estimate.
Crompton (CK) 10.73 -0.17: Company warns for Q2; sees earnings of $0.10-0.12 vs. current EPS estimate of $0.20; company cites: persistent softness in the U.S. auto production sector; a dramatic drop in industrial production representing the longest period of decline in key industrial indices since the 1982 recession; and significant weakness in capital spending for production machinery.
Natl Instruments (NATI) 32.01 -0.44: Company warns for Q2; sees earnings of approx $0.18 vs. current EPS estimate of $0.27; cites an economy that deteriorated significantly, affecting a broad base of its customers, particularly those in the telecommunications, semiconductor, and automated test equipment industries.
IKOS Systems (IKOS) 7.19 0.17: Enters agreement to be acquired by Synopsys Inc (SNPS). Under terms of the deal, the final per share price will range from $6 to $20 and be determined by IKOS' revenue, change in backlog, and profit before tax for the 12-month measurement period ending June 30, 2002.
Sybase (SY) 16.81 +0.36: Company warns on revs for Q2; sees revs of $232 mln vs. est $246.5 mln; does expect pro-forma operating earnings on a fully-diluted basis expected to be in line with analysts consensus estimates of $0.23.
Informatica (INFA) 16.30 -1.06: Company warns for Q2; puts loss for the qtr at approx. $0.01 a share on revenues of $47 mln vs current consensus estimates of a $0.06 profit and $56 mln in revenues; company continued to see softness in the U.S. economy and further slowing in Europe.
Avid Tech (AVID) 14.55 -1.15: Company warns for Q2; sees revs $108-111 mln vs. consensus est of $125; cites the impact of the global economic slowdown on this quarter's projected results.
Electroglas (EGLS) 17.55 -0.15: Company warns for Q2; trims revenue outlook to $22-$24 mln from previous guidance of $26-$30 mln and consensus of $28 mln.
Amkor Tech (AMKR) 22.48 +0.38: Company warns for Q2; sees revs of $350 mln vs. consensus est of $398 mln; company says "Even though we believe we are gaining market share, we are certainly being impacted by the most severe semiconductor industry downturn in history. Excess inventory within the electronics industry, together with sluggish end market demand, have contributed to a lack of visibility throughout the supply chain that has made forecasting very difficult." .
Internet Security Sys (ISSX) 50.17 +1.61: Company warns for Q2; sees loss of $0.00-0.02 vs. current EPS estimate of $0.15; cites larger customers deferring a significant amount of business, either lowering the amount purchased in the current quarter or deferring the decision to later periods.
E.piphany (EPNY) 10.50 +0.34: Company warns for Q2; sees loss of $0.29-0.30 vs. current EPS estimate of ($0.27); company says, "We believe that the North American market stabilized during the quarter, as revenue in that market declined only slightly from the first quarter. However, our international business, which is less mature and more influenced by larger deals, experienced a more significant sequential decline." .
Axsys Technologies, Inc. (AXYS) 10.91 -0.96: Company warns for Q2; sees loss of $0.16-0.18 vs. current EPS estimate of ($0.05); company says warning is principally due to weaker results within the Company's Distributed Products Group, which is expected to generate revenues in the second quarter that are approximately $1.7 million less than the second quarter of 2000. This group has seen a significant decline in orders in recent quarters and ships most orders within a short turnaround time.
DuPont (DD) 48.09 -0.15: Company warns for Q2; sees earnings of $0.35-0.45 vs. current EPS estimate of $0.53; "The global economic slowdown that has forced U.S. manufacturing capacity utilization to levels equal to the 1982 recession is now expanding to Europe, South America, and parts of Asia." .
Rational Sftwr (RATL) 27.40 -0.65: Company warns for Q1; sees revs in range of $172-$176 mln vs. consensus ests for $185 mln and pro-forma earnings in the range of $0.07 to $0.08 per share vs. consensus est of $0.08 EPS; cites particular weakness in Europe and in parts of Asia. |
