CSCO ( $19.40- $18.75 ??) earnings fall 99 per cent as revenues fall sharply, heads lower after hours
Emulex down after Q4 results, Q1 warning
By Nicole Maestri, CBS.MarketWatch.com
Last Update: 5:39 PM ET Aug. 7, 2001
NEW YORK (CBS.MW) -- After initially rising on its in-line fourth-quarter results, Cisco shares headed lower as it said revenue for the first quarter could be flat to down 5 percent vs. the fourth quarter.
"No one knows when capital spending will bottom out and turn up," said CEO John Chambers, in a conference call with investors and analysts. "While we would like to say the bottom has been reached, we are not there yet."
Shares, which ended the day off 1.4 percent on the Nasdaq, slid 1.6 percent to $18.96 on the Island ECN.
For the first quarter, CFO Larry Carter said revenue will be flat to down 5 percent on a sequential basis. Analysts had expected revenue to grow by 1 percent, according to First Call.
** Also slumping after an initial pop were shares of Juniper Networks (JNPR: news, chart, profile), down 2.6 percent; JDS Uniphase off 0.2 percent; and Broadcom down 0.7 percent.
Elsewhere, shares of data storage equipment maker Emulex Corp. traded down 10 percent after the company reported fourth-quarter earnings but issued a warning for its first quarter.
PolyMedica shares tumbled nearly 17 percent to $15.50 in evening action. The company said it has learned that the U.S. Attorney's office for the southern district of Florida is conducting a criminal investigation of its subsidiary, Liberty Medical Supply.
Shares of Microsoft gave up 9 cents to $66.26. The software giant said it would appeal the government's antitrust case to the Supreme Court.
Ahead of Cisco's report, the Nasdaq extended its losing streak to three straight sessions, but the Dow Industrials ended with modest gains, overcoming an early deficit. Read Market Snapshot.
Cisco Systems
Cisco Systems (CSCO: news, chart, profile) met analyst expectations as it reported fiscal fourth-quarter net income of $7 million, or breakeven on a per share basis.
In the same period last year, Cisco had net income of $796 million, or 11 cents a share. During the previous quarter, Cisco reported a net loss of $2.69 billion, or 37 cents a share.
Revenue was $4.3 billion, down from $5.72 billion during the same quarter last year, but slightly below the average target of $4.35 billion among analysts surveyed by Thomson Financial/First Call. During the previous quarter, revenue was $4.73 billion.
Excluding charges, the networking gear maker reported a pro forma net income of $163 million, or 2 cents a share, in line with analyst expectations and a penny below the previous quarter. During the same quarter last year, pro forma net was $1.2 billion, or 16 cents a share. Read full story.
In a conference call though the company said first-quarter revenue could be flat to down 5 percent vs. the fourth quarter. It also said its headcount would decline slightly in the first quarter.
Shares closed down 50 cents, or 2.4 percent, at $18.90.
Microsoft
Microsoft (MSFT: news, chart, profile) said it would appeal the government's antitrust case to the Supreme Court.
The U.S. Court of Appeals in June reversed an order to split the company in two but upheld a finding that the company violated antitrust law. The appellate court ordered the case back to a lower court for a new judge to determine an appropriate remedy.
Microsoft asked the appeals court to delay sending the case back to a new judge pending its request that the Supreme Court hear the case.
Microsoft, in seeking the appeal, contends that bias on the part of the original trial judge tainted the entire case against it.
In its ruling, the appeals court said bias on the part of the judge, who made numerous comments to the press and in public about the case, affected only the remedy portion of the trial.
Shares closed up 22 cents at $66.35.
Emulex
Data storage equipment maker Emulex Corp. (EMLX: news, chart, profile) reported fourth-quarter earnings, while warnings that revenue would for the first quarter would be $55 million.
Shares gave up $2.61, or 10 percent, to $23.08 in evening action.
The company posted pro forma earnings of $9 million, or 11 cents a share, compared with the year-ago total of $9.6 million, or 12 cents a share. Analysts polled by First Call anticipated a profit of 10 cents a share.
Revenue for the quarter totaled $58.4 million, up 43 percent compared with the year-ago period.
Earnings for the first quarter will be about 9 cents, with revenue of about $55 million, while analysts had been expecting earnings of 10 cents, with revenue of $62.4 million. The company cited seasonally soft summer conditions in a continuing difficult economic climate.
Revenue for fiscal 2002 is expected to run between $250 million and $255 million, with earnings of about 43 cents a share. Analysts currently expect 50 cents, on revenue of about $279 million.
Shares closed down 3.8 percent at $25.69.
TMP Worldwide
TMP Worldwide (TMPW: news, chart, profile) , known for its online recruiting service Monster.com, beat the consensus second-quarter earnings estimate by 2 cents and exceeded revenue forecasts.
The recruiting firm said it earned pro forma net income of $36.1 million, or 32 cents per share, vs. $24.3 million in the year-ago period, or 22 cents per share, and vs. expectations of 30 cents.
Quarterly sales rose to $383.6 million from $300.70 million in the year-ago period and higher than the consensus expectation of $381.77 million.
TMP Worldwide fell 3.7 percent to $49.41 in regular trading and then recovered to trade 5.1 percent higher at $51.95 on the Island ECN.
PolyMedica Corp.
PolyMedica (PLMD: news, chart, profile) said Tuesday that it has learned the U.S. Attorney's office for the southern district of Florida is conducting a criminal investigation of its subsidiary, Liberty Medical Supply.
Shares fell nearly 17 percent to $15.50 in evening trading following the news.
The distributor of diabetes-testing supplies said "it continues to believe that Liberty operates its business in full compliance with all applicable laws and that the U.S. Attorney's office will reach the same conclusion."
The acknowledgement follows published reports that the company was under investigation for Medicare fraud.
Shares closed down $2.17 to $18.58. |
