Movers & Shakers
ILOG, SpectraSite, Teradyne, more
By Michael Baron & Jason Margolis,
CBS.MarketWatch.com
Last Update: 11:20 AM ET Oct 17, 2000
NewsWatch
Latest headlines
Advancers
BroadVision (BVSN: news, msgs) jumped over 12
percent on news that the company will replace
PaineWebber (PWJ: news, msgs) in the S&P 500
index after the close of trading October 23. The
shares gained $2.94 to $26.75.
Galileo Technology (GALT: news, msgs) climbed
over 12 percent after the company agreed to be
acquired by Marvell Technology (MRVL: news,
msgs) for $2.7 billion in stock. Galileo shareholders
will receive 0.674. of a Marvell share for each
share they own. Based on Monday's close, the deal
values Galileo at $55.10 a share. Marvell expects
the deal to add to earnings immediately. Galileo
shares rose $3.88 to $34.56. Marvell shares fell
$23.75, or 29.1 percent, to $58.
Integrated Circuit Systems (ICST: news, msgs)
leapt over 8 percent on news that the company will
provide its silicon timing products for Time
Warner's (TWX: news, msgs) next-generation
cable set-top box, which is currently scheduled to
begin production in early 2001. Financial terms of
the deal weren't disclosed. ICST shares rose 94 cents to $12.
RenaissanceRe Holdings (RNR: news, msgs) rallied over 8 percent after
the insurance firm said it expects to report third-quarter profit from
operations of $1.70 to $1.75 per share, above with the average analyst
estimate compiled by First Call of $1.58. The company attributed the
better-than-anticipated results to increases in the growth of managed
catastrophe premiums. The shares gained $5.19 to $65.19.
ScanSoft (SSFT: news, msgs) rose over 18 percent after the company
licensed its image segmentation, compression, and viewing technology to
Microsoft (MSFT: news, msgs) for use in electronic paper products.
Financial terms weren't disclosed. ScanSoft shares gained 31 cents to $2.
SpectraSite Holdings (SITE: news, msgs) jumped over 15 percent after
the companysaid it added 435 towers in the third-quarter, bringing its total
number of towers as of September 30 to 3,909. In addition, the Cary,
N.C., wireless communications firm said it added 450 new collocation
tenants to its portfolio of owned towers, resulting in an annualized rate to
0.52 tenants per tower. The company said same tower revenue growth
rose to 43 percent in the latest three months from 37 percent in the prior
quarter and its average collocation rent came in at $1,581 per month.
"Our metropolitan tower clusters continue to attract significant demand
from national broadband wireless carriers seeking to alleviate capacity
constraints in major markets," said Steve Clark, the company's CEO in a
press release. "Approximately 90 percent of our new leases during the
third quarter came from traditional broadband wireless carriers. However,
we are experiencing increased demand from well funded emerging
wireless carriers -- a trend we expect will continue over the next several
quarters." The shares rose $2 to $14.94.
Sunrise Medical (SMD: news, msgs) soared over 45 percent on news that
the Carlsbad, Calif., homecare products firm has accepted a buyout offer
of $10 a share, or $222 million, from an investor group. The acquiring
firm includes Sunrise President and CEO Michael Hammes and affiliates
of Park Avenue Equity Partners and Vestar Capital Partners. The shares
gained $2.94 to $9.38.
Decliners
Catalina Marketing (POS: news, msgs) fell over 7 percent in early action
Tuesday. After Monday's closing bell, the St. Petersburg, Fla., consumer
marketing firm reported second-quarter earnings of $15.1 million, or 26
cents a share, up from last year's profit of $11.7 million, or 20 cents a
share. These results matched First Call's average estimate. Revenue rose
17 percent in the latest three months to $101.8 million from $86.8 million
in the same period a year earlier. The shares lost $2.88 to $36.06.
Charles Schwab (SCH: news, msgs) dropped over 5 percent after the
company reported third-quarter earnings of $166 million, or 12 cents a
share, up from last year's profit of $144 million, or 11 cents a share, and
in line with the average estimate of analysts polled by First Call. Revenue
rose to $1.32 billion in the latest three months from $1.02 billion in the
same period a year earlier. Clients assets, which peaked above $1 trillion
in mid-August, ended the quarter at $961 billion, up 38 percent from a
year earlier. The shares fell $1.69 to $29.81.
Electronics For Imaging (EFII: news, msgs) plunged over 33 percent after
the company warned that revenue and net income during the fourth
quarter would be negatively impacted by weak demand in the printing and
imaging market. EFI now expects net income of 6 cents to 12 cents per
share on revenue of between $115 million to $125 million for the period.
Analysts surveyed by First Call expect earnings of 43 cents per share, on
average. EFI also reported third-quarter earnings that matched Wall
Street expectations. The shares slumped $5.81 to $11.31.
ILOG S.A. (ILOG: news, msgs) plummeted over 40 percent after the
French software firm warned that first-quarter revenue would come in at
$13 million, below last year's total of $14.3 million. The company forecast
a loss of 20 cents a share for the quarter, wider than last year's deficit of 8
cents a share. ILOG attributed the shortfall to an absence of royalties
from a major undisclosed independent software vendor. The shares lost
$20.75 to $29.94.
Internet Pictures (IPIX: news, msgs) plunged over 52 percent after the
Oak Ridge, Tenn., Web imaging firm said third-quarter revenue will miss
Wall Street expectations. The company expects to report a loss of 33
cents a share for the September quarter, which it said is ahead of analyst
views. Revenue is projected at $17 million, above last year's total of $3.7
million, but below expectations due to temporary delays in the rollout of
contracts with Cendant (CD: news, msgs) and E-Bay (EBAY: news,
msgs). Internet Pictures expects these contracts to produce revenue in the
fourth quarter. In addition, the company plans to reduce its workforce by
20 percent, eliminating 175 positions as part of a restructuring effort that
should annual expenses by $16 million. Internet Pictures will record a
charge of $4.5 million in the fourth quarter related to the plan. Looking
ahead, the company cut its top line revenue growth projection for 2001 to
$141 million, a 20 percent reduction. However, Internet Pictures expects
its restructured operations will allow it to reach profitability in the fourth
quarter of 2001, as expected. The shares plummeted $2.25 to $2.
JNI Corp. (JNIC: news, msgs) fell over 4 percent after the company
posted third-quarter net income of $5 million, or 18 cents a share, beating
the consensus estimate by a nickel. Revenue grew 177 percent in the
latest three months to $30 million. The company's gross margins grew to
59.3 percent compared with 58.8 percent in the second quarter, due to
production efficiencies. The shares lost $4 to $82.50.
McAfee.com (MCAF: news, msgs) sank over 20 percent despite the
company's better-than-expected third-quarter earnings report.
McAfee.com lost $3.8 million, or 9 cents a share, in the latest three
months, two cents narrower than the average estimate of analysts polled
by First Call. Revenue for the quarter totaled $12.6 million, up $5.8
million from the same period last year. The shares fell $2.19 to $8.56.
Micron Technology (MU: news, msgs) slumped over 13 percent afterv
PaineWebber analyst David Wong lowered his recommendation on the
chip company to an "attractive," from a "buy," and lowered his price target
to $50 from $110. due to the ongoing erosion of DRAM prices. Wong
also cut his earnings-per-share estimate for 2000 to $4.11 from $4.92
and for 2001 to $5.35 from $5.45. Morgan Stanley also downgraded the
shares, which lost $4.44 to $29.25.
Network Associates (NETA: news, msgs) lost over 5 percent after the
company reported third-quarter earnings of $39.8 million, or 27 cents a
share, up from last year's profit of $20.3 million, or 13 cents a share, and
3 cents ahead of the average estimate of analysts polled by First Call.
Revenue rose to $226.2 million in the latest three months from $188.4
million in the same period a year earlier. The shares fell $1.12 to $19.19.
Novellus (NVLS: news, msgs) slipped over 13 percent after the company
reported third-quarter earnings of $85.3 million, or 62 cents per share, up
from last year's profit of $21.8 million, or 18 cents per share. These
results matched First Call's average estimate. Revenue jumped to $359
million in the latest three months from $154.9 million in the same period a
year earlier. The shares sank $4.62 to $30.25.
Power Integrations (POWI: news, msgs) dropped over 10 percent after
the company reported third-quarter earnings of $5.1 million, or 18 cents a
share, up from last year's profit of $6.8 million, or 24 cents a share, and 4
cents below the average estimate of analysts polled by First Call. Revenue
fell in the latest three months to $27.4 million from $29.8 million in the
same period a year earlier. The company attributed the disappointing
results to weakness in its cellular phone charger business. Power
Integrations said it remains cautious about the outlook for the next few
quarters. The shares fell $1.19 to $10.
SangStat (SANG: news, msgs) plunged over 31 percent after the
company named President/CEO Jean-Jacques Bienaime to the additional
post of chairman. In addition, the company said it expects to report a
third-quarter loss of 58 to 62 cents a share on revenue of between $20.5
million to $21.5 million. For the fourth quarter, SangStat projects a loss of
30 to 35 cents a share on revenue of $22 million to $24 million. Both
these estimates include one-time items. Analysts polled by First Call were
looking for a loss of 47 cents in the third quarter and 27 cents in the fourth
quarter. The company plans to redirect its resources to focus on the
development of high value therapeutics in niche markets. The shares
pulled back $3.75 to $8.25.
Silicon Laboratories (SLAB: news, msgs) gave back over 7 percent of its
value after the company reported third-quarter earnings of $6.5 million, or
13 cents a share. These results, which exclude items, are up from last
year's profit of $4.4 million, or 10 cents a share and 2 cents ahead of the
average estimate of analysts polled by First Call. Sales rose 101 percent
in the latest three months to $29.4 million from $14.6 million in the same
period a year earlier. The shares fell $2.50 to $36.
Teradyne (TER: news, msgs) dropped over 23 percent after the company
reported third-quarter earnings of $153.4 million, or 84 cents a share, up
from last year's profit of $62.7 million, or 35 cents a share, and a penny
ahead of First Call's average estimate. Revenue rose in the latest three
months to $848 million from $497 million in the same period a year
earlier. However, Analyst Vernon Essi at Adams, Harkness & Hill noted
that the company said in a conference call that fourth-quarter earnings will
be 20 percent below third-quarter levels. Currently, analysts are looking
EPS growth of nearly 9 percent. Essi said the company cited weak orders
for chip testing equipment for the expected shortfall. The shares lost $9.19
to $25.25.
Michael Baron is a reporter for CBS.MarketWatch.com based in New
York.
Jason Margolis is a reporter for CBS.MarketWatch.com. |
