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Wednesday October 27 3:15 PM ET SBC, Global Crossing Top Estimates By Jessica Hall
NEW YORK (Reuters) - Telecommunications companies SBC Communications Inc (NYSE:SBC - news). and Global Crossing Ltd (Nasdaq:GBLX - news). posted better-than-expected results Wednesday, while Qwest Communications International Inc (Nasdaq:QWST - news).'s profits were in line with estimates as revenues soared.
SBC, the No. 1 U.S. local telephone company which recently acquired Ameritech Corp., said its 22.5 percent rise in third quarter profits, excluding one-time items, was driven by strong growth in data, wireless and international services.
SBC, which next week will become a component of the Dow Jones industrials average, said its third-quarter profits were $1.3 billion or 64 cents a share, compared with $1.0 billion or 53 cents a share a year ago.
San Antonio, Texas-based SBC's results beat Wall Street's earnings expectations of 61 cents a share, according to research firm First Call/Thomson Financial.
Shares of SBC, the dominant local phone company in the southwestern and midwestern United States, gained 2-1/16 to 47-5/8 on the New York Stock Exchange.
SBC's operating revenues rose 7.6 percent to $7.8 billion from $7.2 billion a year ago. The results reflect SBC as a stand-alone company before its $61 billion acquisition of sister Baby Bell Ameritech Corp on Oct. 8.
Including the Ameritech deal, SBC's proforma net income fell 41 percent to $1.1 billion or 33 cents a share, from $1.9 billion or 56 cents a share a year ago. Proforma operating revenues rose 8 percent to $12.5 billion from $11.6 billion. The results include one-time charges related to the Ameritech deal and gains from the sale of some South African investments. SBC's said its pro forma data services revenues increased 43.4 percent to $1.5 billion, fueled by continued demand for high-capacity, high-speed services.
SBC, like other local phone companies, has been investing heavily in new data services. SBC earlier this month announced a $6 billion project to upgrade its local phone network to provide high-speed Internet access.
SBC's wireless revenues increased 25 percent, and its domestic wireless customer base rose 24.7 percent to 10.3 million.
Qwest's Revenues Soar 26 Percent
Denver-based Qwest, the No. 4 U.S. long-distance phone company, said its third quarter results excluding one-time costs rebounded to a profit as it crossed the $1 billion mark in quarterly revenues for the first time.
Excluding $25 million in charges related to its pending $36 billion purchase of U S West Inc. and other acquisitions, Qwest earned $19.8 million, or 3 cents per share, compared with a loss of $11.4 million, or 2 cents per share, a year ago.
The results matched the consensus expectation of analysts polled by research firm First Call/Thomson Financial. Shares of Qwest fell 1/2 to 33-15/16 on Nasdaq.
Including one-time costs, Qwest reported a net loss of $1.8 million, or nil per share, compared with a net loss of $6.9 million, a penny per share a year ago.
Qwest's total revenues rose 26 percent to $1.02 billion from $806.8 million last year. Internet and data services continued to be the company's fastest growing segment, with revenues up more than 200 percent.
Qwest expects its data and Internet services will account for 25 percent of its revenues in the fourth quarter, up from 23 percent in the third quarter.
Nearly all of Qwest's third quarter revenues was derived from communications services, with its construction revenues slipped to less than 2 percent of total revenue this year as it completed work on its 18,500-mile (29,600-km) U.S. fiber-optic network.
Qwest said it expects continued, strong total revenue growth. It expects revenues for 1999 to exceed current Wall Street forecasts of $3.6 billion to $3.7 billion and 2000 revenues to top expectations of $4.6 billion to $4.7 billion.
Shareholders for Qwest and U S West will vote on their planned merger on Nov. 2. Qwest won the hand of U S West after a tense six-week bidding war with rival Global Crossing Ltd.
Global Crossing Posts Smaller-Than-Expected Loss
Global Crossing, which is building undersea and international fiber optic networks, posted a smaller-than-expected third quarter loss as revenues increased 7.5 percent, following its recent acquisitions of Frontier Corp. and Global Marine Systems.
Bermuda-based Global Crossing, the No. 5 U.S. long distance company, said its third quarter pro forma loss was $34.1 million or 4 cents a share, compared with a profit of $11.7 million or 2 cents a share a year ago.
The quarterly loss was smaller than the 10 cents a share loss expected by Wall Street, according to research firm First Call/Thomson Financial. Shares of Global Crossing gained 1/2 to 34-5/8 on Nasdaq.
Pro forma revenues rose to $929 million, compared with $863 million. The pro forma results assume the acquisitions of Frontier and Global Marine Systems had occurred at the beginning of the quarter.
Frontier, as a stand-alone company, showed stagnant revenue growth of 2.4 percent and a 7.5 percent drop in net income. Frontier, like other long-distance companies, was hurt by escalating price wars and competition.
Global Crossing said in a conference call it expects strength from the combined company's lucrative data business to offset ongoing price pressure in the long distance industry.
Global Crossing, which had its initial public offering last year, also recently announced plans to buy the telecommunications arm of Britain's Racal Electronics Plc for about $1.65 billion. Global Crossing expects to continue to expand through acquisition.
Global Crossing plans to focus on its commercial and wholesale markets and to de-emphasizing Frontier's consumer business. Over the next five years, the company expects half of its revenue to come from its own services and as much as 45 percent from its wholesale business, with consumer services being a very small contributor. Enter Company Name or Ticker
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-------------------------------------------------------------------------------- LIGAND: Transcription is the prescription: Wednesday September 22, 1:31 pm Eastern Time Company Press Release Ligand Receives Milestone for AHP Pre-Clinical Development Stage Compound SAN DIEGO--(BW HealthWire)--Sept. 21, 1999--Ligand Pharmaceuticals Incorporated (NASDAQ:LGND - news) announced today that Wyeth-Ayerst Laboratories, the pharmaceutical division of American Home Products Corporation (NYSE:AHP - news), has elected to proceed with pre-clinical development of the clinical candidate WAY160910, a non-steroidal progesterone receptor antagonist, triggering an undisclosed milestone payment to Ligand under the research collaboration agreement signed in September 1994. Ligand will receive additional milestone payments and royalties if WAY160910 continues through IND filing and development and receives marketing approval.
''We are pleased with the recent progression of WAY160910 within AHP. Because of its unique characteristics, WAY160910 may be useful in the creation of the first estrogen-free oral contraceptive, thus providing a novel approach to oral contraception,'' said Andres Negro-Vilar, M.D., Ph.D., Ligand Senior Vice President and Chief Scientific Officer.
WAY160910 is the third compound resulting from the Ligand / Wyeth-Ayerst research and development collaboration. This collaboration was initiated in September 1994 to discover and develop drugs for use in hormone replacement therapy, anti-cancer therapy, gynecological diseases, central nervous system disorders associated with menopause, contraception, and osteoporosis. The research phase of the Wyeth-Ayerst collaboration ended in 1998, having brought forth not only the ongoing progestin modulators but also two tissue selective estrogen receptor modulators, or ''SERMs''. These are TSE424 for the treatment of osteoporosis in post-menopausal women, now in Phase II clinical trials, and ERA923 for breast cancer in women, now in Phase I clinical trials.
Wyeth-Ayerst Laboratories
Wyeth-Ayerst Laboratories is a major research-oriented pharmaceutical company with leading products in the areas of women's health care, cardiovascular, and metabolic disease therapies, central nervous system drugs, anti-inflammatory agents, vaccines, and generic pharmaceuticals. American Home Products Corporation is one of the world's largest research-based pharmaceutical and health care products companies. It is a leader in the discovery, development, manufacturing, and marketing of prescription drugs and over-the-counter medications. It is also a global leader in vaccines, biotechnology, agricultural products, and animal health care.
Ligand Pharmaceuticals Incorporated
Ligand Pharmaceuticals Incorporated discovers, develops and markets new drugs that address critical unmet medical needs of patients in the areas of cancer, skin diseases, and men's and women's hormone-related diseases, as well as osteoporosis, metabolic disorders and cardiovascular and inflammatory diseases. Ligand's first two drugs -- Panretin® gel and ONTAK® -- were approved for marketing in the U.S. in early 1999 and are being marketed through its specialty cancer and HIV-center sales force in the U.S. Four additional oncology-related products are in late-stage development, including Targretin® capsules, Targretin® gel, Panretin® capsules, and Morphelan(TM) (licensed from Elan). Ligand's proprietary drug discovery and development programs are based on its leadership position in gene transcription technology, primarily related to Intracellular Receptors (IR) and Signal Transducers and Activators of Transcription (STATs).
This news release may contain certain forward looking statements by Ligand and actual results could differ materially from those described as a result of factors including, but not limited to the following. There can be no assurance that any product in Ligand's or any partner's pipeline will be successfully developed, that pre-clinical results will be replicated in humans, that regulatory approvals will be granted in a timely manner or at all, that patient and/or physician's acceptance of these products will be achieved, or that any approved products will be successfully commercialized. Additional information concerning these factors can be found in press releases as well as in Ligand's public periodic filings with the Securities and Exchange Commission. Ligand undertakes no obligation to update the statements contained in this press release after the date hereof.
For information about Wyeth-Ayerst, contact: Douglas Petkus, 610/971-4980.
Note: Public information on Ligand Pharmaceuticals Incorporated, including our financial statements and other filings with the Securities and Exchange Commission, our recent press releases and the package inserts for products approved for sales and distribution in the United States, is available on our web site at ligand.com.
Panretin® and Targretin® are registered trademarks of Ligand Pharmaceuticals Incorporated, and ONTAK® is a registered trademark of Seragen Inc., a wholly owned subsidiary of Ligand.
-------------------------------------------------------------------------------- Contact:
Ligand Pharmaceuticals Incorporated Paul V. Maier, 858/550-7573
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