I tried to find some positive news, as instructed by MeDroogies, but failed, unable to pull my eyes away from words like "Relentless" ... doesn't look so good for the red clan at the moment
cbs.marketwatch.com
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AFTER HOURS
Relentless warnings from tech titans
Advanced Micro, EMC outlooks wrack evening investors
By Nicole Maestri, CBS.MarketWatch.com
Last Update: 6:38 PM ET July 5, 2001
NEW YORK (CBS.MW) -- Corporate America's stream of earnings warnings showed no signs of letting up Thursday evening as chipmaker Advanced Micro Devices and data-storage giant EMC both warned that their second-quarter results would be well short of Wall Street's expectations.
AMD, the second-largest chipmaker after Intel, said its sales were hurt by weak demand for its flash-memory devices and competitive pricing. As shares of AMD slid 16 percent, shares of rival Intel (INTC: news, msgs, alerts) fumbled 4.2 percent as the second-most active stock on the Island ECN. Watch video brief.
Data storage giant EMC said second-quarter results were hampered by the global slowdown in IT spending, and its shares tumbled 16 percent. That spelled trouble for shares of data storage-related companies, with Sun Microsystems (SUNW: news, msgs, alerts) off 2.7 percent, Brocade (BRCD: news, msgs, alerts) down 7.2 percent and Network Appliance (NTAP: news, msgs, alerts) sliding 8.4 percent
There was more negative news from the sector, as Tekelec, a provider of telecommunications signaling equipment, lowered its second-quarter earnings expectations. The company said it experienced an unanticipated number of customer order delays and postponements at the end of its quarter.
Elsewhere, BMC Software said its preliminary first-quarter numbers were below previous expectations, as it failed to close some deals. See full story.
Rounding out the session, there was a warning from winemaker Robert Mondavi and coffee retailer Starbucks reported June same-store sales.
Marconi's warning put a drag on the broader markets in trading Thursday, fueling concern that the European market can't offer any safety from the plunge in U.S. capital spending. Both the Nasdaq and the Dow felt the heat of the negative news, trading 2.8 percent and nearly 1 percent lower, respectively. Read Market Snapshot.
Advanced Micro Devices
Advanced Micro Devices (AMD: news, msgs, alerts) reported its earnings will total 3 to 5 cents a share, well short of analyst expectations of 27 cents a share.
Sales for the second quarter ended July 1 are expected to drop 16 percent from the year-ago period to $985 million, short of its target of $1.08 billion.
AMD lost $1.12 to close at $28.64 on New York Stock Exchange volume of 6.25 million shares and traded at $24.05 in evening action.Read full story.
EMC
Data storage company EMC (EMC: news, msgs, alerts) said second-quarter earning per share will be 4 cents to 6 cents, with revenue of roughly $2 billion. Analysts had been expecting earnings of 17 cents per share, according to First Call's consensus estimate.
The company said its results were being hit by "each unanticipated downward step in the global economy."
EMC, which is due to report final results July 18, said it won't comment further on the quarter until then. Read full story.
Shares closed down $1.59, or 5 percent, at $30.03 ahead of the report and backtracked to $25.36 in the third market after hours.
Marconi
U.K.-based telecom-equipment maker Marconi (MONI: news, msgs, alerts) issued an earnings warning on Wednesday. The company said that its profits would fall 50 percent, saying it faced a collapse of sales in Europe in the second quarter of the year, compounding the impact of the slowdown in the United States.
The telecom equipment maker also said it will cut 4,000 more jobs on top of 4,000 already cut this year, leaving a work force of about 45,000. See full story.
Shares closed down 52 percent at $3.35 on the Nasdaq but rose to $3.37 after hours.
BMC Software
BMC Software (BMC: news, msgs, alerts) said preliminary first-quarter pro forma net income is $15 million to $20 million, or 6 cents to 8 cents a share, on revenue of $338 million to $345 million.
BMC had expected per-share earnings of 11 cents to 14 cents and revenue 3 percent to 5 percent higher.
The software company said it failed to close some deals that it expected to close during the quarter.
Shares closed down 63 cents, or 2.9 percent, at $21 and slipped to $20 in third-market trading action. Read full story.
Tekelec
Tekelec (TKLC: news, msgs, alerts) lowered its second-quarter earnings expectations after the closing bell Thursday, saying it experienced an unanticipated number of customer order delays and postponements at the end of its quarter.
The Calabasas, Calif.-based company now sees second-quarter earnings per share between 2 cents and 3 cents, excluding merger charges. Analysts had been expecting earnings of 16 cents per share, according to the consensus estimate of analysts polled by First Call/Thomson Financial.
The provider of telecommunications signaling equipment now sees revenue between $70 million and $71 million, down from prior expectations of $88 million to $90 million.
Shares closed down $1.50, or 5.7 percent, at $24,85 ahead of the report and slipped $3.84, or 15 percent, to $21 on the Island ECN.
Starbucks
Same-store sales at Starbucks Corp. (SBUX: news, msgs, alerts) rose 3 percent for the June period that ended July 1.
Net sales spiked 19 percent to $259 million thanks to the opening of 934 new stores. Starbucks opened 644 new units in North America and 290 international stores.
Shares of Starbucks closed Thursday down 7 cents to $21.92 ahead of the monthly sales report and slid 67 cents to $21.25 on the Island ECN. Starbucks shares have traded in a 52-week range of $25.66 to $17.28.
Robert Mondavi
Winemaker Robert Mondavi Corp. warned that it expects a slowdown in earnings growth during 2002 because of a weaker premium wine market.
Mondavi (MOND: news, msgs, alerts) said it expects to grow earnings at 13 to 15 percent during 2002, down from the Oakville, Calif., company's earlier estimate of 16 to 18 percent growth. Adjusted earnings per share in its first quarter are expected to be equal to last year's adjusted earnings of 70 cents a share, the company said. Wall Street analysts currently expect Mondavi to report a first-quarter profit of 77 cents a share on average.
However, Mondavi reaffirmed previous earnings expectations for the fourth quarter and fiscal 2001, of 71 cents a share and $2.95 cents a share, respectively. Both figures match the consensus of analysts polled by First Call/Thomson Financial. Read full story.
Shares closed down 80 cents, or 1.9 percent, at $41.10 and slid $3.10, or 7.5 percent, to $38 after hours.
Nicole Maestri is a reporter for CBS.MarketWatch.com in San Francisco.
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