AMZN ($16.30--$14.70)slides as top Island mover
Cirrus, Altera down; Texas Instruments rises
By Nicole Maestri, CBS.MarketWatch.com
Last Update: 6:06 PM ET July 23, 2001
NEW YORK (CBS.MW) -- Shares of Amazon.com slid in heavy volume after the closing bell Monday as the company's second-quarter loss matched analysts' estimates, but the online retailer indicated that its second half won't meet revenue expectations.
On the Island ECN, shares traded down 6.3 percent at $15.02.
Also falling were shares of chip companies Cirrus Logic and Altera, although Texas Instruments edged up.
Texas Instruments weighed in with a second-quarter profit that beat expectations, but it said it sees continued softness in the third quarter as its semiconductor customers further reduce inventory. TI said it expects to lose a few cents a share in the September quarter. After an initial decline, shares rose 15 cents in third-market action.
FRONT PAGE NEWS
Amazon.com slides 6 percent after hours
Amazon slices loss, sells stake to AOL
U.S. averages drip in red ink
AT&T profit shrinks on phone woes
Market news and more! Sign up to receive FREE email newsletters
Get the latest news
24 hours a day from our 100-person news team.
Chipmaker Cirrus came in with first-quarter financial results that fell short of expectations, and it warned of a loss in its second quarter. Watch video report.
Shares of AT&T ticked back as it indicated that the slowing economy is likely to crimp third-quarter profit
There were gains for others reporting results that were either in line or above expectations.
Shares of both ONI Systems and Openwave Systems rose in evening action following their quarterly reports.
Amazon.com
Amazon.com struck a deal to sell an equity stake to AOL Time Warner and posted better-than-expected second-quarter financial results
The online retailer cut its losses in half for the period, as its U.S. operations reached operating profitability for the first time ever. But Amazon's news came with a dose of grim news as the company indicated that its second half won't meet analysts' revenue expectations.
In its quarterly report, Amazon (AMZN: news, chart, profile) reported a pro forma net loss of $58 million, or 16 cents a share, compared with a loss of $116 million, or 33 cents a share, in the corresponding period a year ago. Pro forma net loss includes interest expense and $30 million in other costs.
Net sales totaled $668 million, up 16 percent from $578 million.
Amazon's performance surpassed by 6 cents the consensus earnings estimate of analysts polled by First Call/Thomson Financial. However, revenue fell short of the expected $677.7 million.
For the third quarter, Amazon expects sales to come in between $625 million to $675 million. Gross margins should range from 24 to 27 percent. Absolute pro forma operating losses should be flat or show a slight improvement from the second quarter. Cash and marketable securities are expected to be more than $600 million at Sept. 30.
The sales outlook is far below the $732.93 million analysts expected.
For the fourth quarter, net sales should come in 10 to 20 percent higher than the year-ago quarter. That amounts to somewhere between $1.07 billion to $1.17 billion, since Amazon brought in net sales of $972.36 million in the fourth quarter of 2000.
Again, the outlook is below analysts' expectations of $1.265 billion. Read full story.
Texas Instruments
Dallas-based Texas Instruments (TXN: news, chart, profile) , one of the world's leading semiconductor manufacturers, reported a second-quarter profit of $50 million, or 3 cents a share, one cent better than the average estimate of analysts according to First Call/Thomson Financial.
In the second quarter of 2000, TI reported $543 million, or 30 cents, in profit.
TI's exposure to the wireless industry hurt the company as the big manufacturers of wireless devices, including the leader Nokia (NOK: news, chart, profile) , all struggled.
On the top line, TI, which forecast a 20 percent decline from the first quarter to the second, reported a 19 percent sequential loss in revenue to $2.04 billion.
Looking ahead, TI said it sees continued softness in the third quarter as its semiconductor customers further reduce inventory. TI said it expects to lose a few cents a share in the September quarter.
TI, the market leader in digital signal processors and analog chips, closed lower by 70 cents to $30.80 ahead of the announcement and then rose 10 cents to $30.90 in third-market trading. Read full story.
Cirrus Logic
Chipmaker Cirrus Logic (CRUS: news, chart, profile) reported a first quarter net loss of $23 million, or 31 cents a share, on revenue of $179.7 million. During the same quarter last year, net income was $98.8 million, or $1.27, on revenue of $181.4 million.
Excluding one-time gains and special charges but including an excess inventory charge, pro forma net income was $7.5 million, or 10 cents a share, compared with $10.1 million, or 15 cents a share, during the same quarter last year.
Analysts expected Cirrus Logic to earn 11 cents a share on a pro forma basis.
During the second quarter, Cirrus said it will report a pro forma loss of 15 cents to 20 cents a share on revenue of $75 million to $85 million.
The decrease in revenue will be a result of Cirrus' previously announced exit from the magnetic storage business, which accounted for $120 million of revenue in the just completed quarter.
Shares closed down 8.3 percent at $24.03 and then fell close to 15 percent to $20.46 in evening action. Read full story.
Altera
Programmable logic device maker Altera (ALTR: news, chart, profile) reported a second-quarter net loss of $89.2 million, or 23 cents a share, on revenue of $215.3 million. During the same quarter last year, net income was $98.2 million, or 23 cents a share, on revenue of $340.7 million.
Excluding one-time charges of $127 million, Altera's pro forma net income was $36 million, or 9 cents a share.
Analysts surveyed by First Call/Thomson Financial expected pro forma earnings of 8 cents a share.
Ahead of the news, Altera shares closed down 58 cents at $28.76 and then slid 96 cents to $27.80 after hours.
AT&T
AT&T posted a sharp drop in second-quarter income as long-distance business continued to decline. Ma Bell also indicated that the slowing economy is likely to crimp third-quarter profit.
The No. 1 U.S. long-distance operator said profit from continuing operations totaled 4 cents a share, down from 47 cents a share a year earlier. The company did not provide comparable total figures.
AT&T was expected to earn 3 cents a share, according to the consensus of analysts surveyed by First Call/Thomson Financial.
Adjusted sales slid 3 percent to $13.3 billion from $13.7 billion.
Figures for the latest quarter exclude the impact of the company's spin-off of the rest of its AT&T Wireless (AWE: news, chart, profile) subsidiary, completed on July 9.
Including onetime factors but excluding discontinued operations, AT&T said it lost $51 million, or 10 cents a share.
Looking ahead, AT&T said it expects profit from operations to register 2 cents to 5 cents a share in the third quarter. The First Call consensus is for a gain of 6 cents a share. The company said further deterioration in the U.S. economy might exert "further downward pressure" on results. Read full story.
In regular trade on Monday, shares of AT&T (T: news, chart, profile) fell 85 cents to $20.05 and then retreated another 5 cents to $20 in third-market trading.
Computer Associates
Computer Associates (CA: news, chart, profile) reported first-quarter earnings of $323 million, or 55 cents a share, 7 cents ahead of First Call/Thompson Financial's consensus estimate of 48 cents and up from $201 million, or 33 cents, a year earlier.
Revenue climbed to $1.44 billion, up from $1.32 billion a year ago.
The quarterly check-up was announced amid a lingering battle waged by Texas financier Sam Wyly to take control of the world's fourth largest software maker and to break the New York-based company into four separate units.
Shares of Computer Associates closed down 41 cents or 1.2 percent, to $33.11 and then rose to $33.25 after hours. Read full story.
Openwave Systems
Openwave Systems (OPWV: news, chart, profile) posted fourth-quarter earnings of $19.2 million, or 11 cents a share, compared with the year-ago total of $45.4 million, or 25 cents a share. The 23 analysts polled by First Call expected a profit of 10 cents a share, on average.
Revenue totaled $144.7 million, up from the year-ago total of $130 million.
Shares, which closed up $1.33 to $19.30 ahead of the news, gained $1.72 to $21.02 after hours.
Including merger and acquisition-related charges and stock-based compensation, the company lost $690 million, or $4.17 cents a share, compared with the year-ago loss of $288.3 million, or $2.06 a share.
Previously, the company said it anticipated revenue growth between 10 and 20 percent for the first quarter of 2002.
The company now anticipates revenue to increase at the "low end of this range."
ONI Systems
ONI Systems (ONIS: news, chart, profile) posted second-quarter earnings of 5 cents -- in line with analysts' estimates -- and provided targets for the third and fourth quarters.
The company is projecting revenue of between $75 million and $80 million for the third quarter, up from the company's prior target of $60 million to $70 million.
Fourth-quarter revenue will be in the range of $85 million to $90 million.
Analysts polled by First Call currently expect revenue of about $67.5 million for the third-quarter and $81.7 million for the fourth quarter. Total revenue will be about $275 million to $285 million for the year, while analysts had been expecting $250 million.
The optical telecommunications systems provider expects to break even in the fourth quarter. Analysts currently expect a profit of 1 cent for the fourth quarter.
Shares rose 5.6 percent to $23.80 on the Island ECN.
BMC Software
BMC Software reported a first-quarter loss, including special charges, of $34.5 million, or 14 cents per share. That compares with earnings of $10 million, or 4 cents per share, in the first quarter of 2000.
Excluding special charges, BMC Software (BMC: news, chart, profile) reported first-quarter earnings of $16.6 million, or 7 cents per share - right in the middle of its lowered targets.
Revenue slid 7 percent to $339.2 million from $372.7 million.
July 5, the company warned it would fall short of initial first-quarter financial targets since projected sales failed to materialize late in the quarter. At the time, BMC said to expect pro forma net income of $15 million to $20 million, or 6 cents to 8 cents a share, on revenue of $338 million to $345 million. Analysts had been expecting the company to earn 7 cents per share, according to First Call.
Shares closed down 1 percent at $20.45 and were not active after hours.
Nicole Maestri is a reporter for CBS.MarketWatch |
