More from Briefing.com: 8:17PM After hours indications : Futures off sharply tonight following the WCOM accounting fraud news; S&P futures 19.5 pts below fair value; Nasdaq 100 futures 33 pts below fair value. WCOM news will further undermine investor confidence in quality of earnings, though some will no doubt argue that the resulting capitulation may mark the bottom; we shall see.
8:02PM Cirrus Logic warns for June quarter (CRUS) 6.54 +0.33: Sees Q1 (Jun) revenues of $74-77 mln vs prior guidance of $87-88 mln and Multex consensus of $88.3 mln; pro forma loss seen at $0.08-0.10 vs Multex consensus of a loss of $0.08; says shortfall is due solely to lower demand by Thomson Multimedia, which manufactures DVD subsystems for the Microsoft (MSFT) Xbox.
7:59PM WorldCom confirms earnings restatement (WCOM) 0.83 -0.08: -- Update -- Company confirms that it will restate earnings to reflect line cost expenses that were misreported as capital expenses; EBITDA will be reduced by $3.055 bln in 2001 and $797 mln in 2001 as a result. To address its liquidity issues, WCOM will cut capex "significantly" in 2002 and to $2.1 bln in 2003; cut workforce by 17,000, sell non-core businesses, pay preferred dividends in common stock, and discontinue the MCIT dividend payment - expects $2 bln per year in cash savings. Stock at 0.21 after hours.
7:53PM Amkor reaffirms Q2 guidance (AMKR) 3.90 -1.71: Company reaffirms Q2 guidance of 20% sequential revenue growth for its assembly and test segment, and roughly flat wafer fab revenue due to softer demand from Texas Instruments (TXN); continues to expect double digit assembly/test revenue growth in Q3 as well. Company knows of no reason for recent weakness in its stock.
7:08PM Adelphia files for bankruptcy (ADLAE) : The Wall Street Journal is reporting that Adelphia has filed for chapter 11 bankruptcy protection and has obtained $1.5 bln in debtor-in-possession financing; the bankruptcy filing had been expected.
7:03PM WorldCom story confirmed by WSJ (WCOM) 0.83 -0.08: -- Update -- The Wall Street Journal is also reporting the WCOM story; like CNBC, it says that over $3 bln in expenses were improperly booked as capital expenditures, though the WSJ claims that this boosted cash flow, which appears incorrect based on the available information. Investors appear to be concluding that this will be the death knell for WCOM and that chapter 11 bankruptcy is now likely; WCOM trading at 0.25, -0.58 from the 4 pm close.
6:26PM WorldCom engaged in accounting fraud: CNBC (WCOM) 0.83 -0.08: CNBC reporting that WCOM has engaged in fraudulent accounting over the past five quarters; says that company recorded many regular expenses as capital expenditures, boosting EBITDA by $3.6 bln over the past five quarters. CNBC also reports that the CFO has been dismissed in the last 48 hours. Though misreporting regular expenses as capex does not affect cash flow, it can affect estimates of a company's future earnings power; CNBC also adds that the company will soon restate its earnings to reflect these issues. WCOM plunges after hours to 0.38, off 0.50 from the close.
5:57PM Micron (MU) 19.75 +0.03: -- Update -- On call, company says capital spending should be about $900 mln - $1 bln in fiscal 02 (Aug). It should increase to $1 - $1.5 bln next year depending on market conditions... stock at 18.
5:50PM Micron (MU) 19.75 +0.03: -- Update -- On conference call, company does not provide specific guidance for Q4 (Aug)... Since early April, prices have been under pressure. For example, its 256 product has been reduced to $5 from $10 per unit.... stock at 18.17
finance.yahoo.com
It starts to get interesting for sure tomorrow morning Don.
RtS |
