Xpedior Files for Chapter 11
Xpedior Inc., Chicago, and its U.S. units filed for Chapter 11 bankruptcy protection. The e-business consulting-services provider said its foreign units were not included as part of the filing. Xpedior said it plans to dispose its assets and use the proceeds to pay its obligations. The filing provides cash proceeds to pay creditors and if creditors have been fully paid, to holders of the company's preferred stock and common stock. However, Xpedior said it doesn't expect proceeds to remain for distribution to its preferred or common stock holders. Xpedior will work closely with creditors to recover all available assets. Xpedior earlier filed a written request to the Nasdaq National Market System to voluntarily delist its shares from trading. The company's delisting became effective March 26. On March 20, Xpedior closed several offices and cut 42% of its work force.
Sybase Lowers Its Full-Year Targets
Sybase Inc. met analysts' lowered expectations for first-quarter earnings on operations, but it said its full-year financial results will fall below Wall Street's current projections as the economy continues to slow. The maker of database software said net income more than doubled to $14.9 million, or 16 cents a diluted share, from $6.7 million, or seven cents a share, a year earlier. Excluding expenses related to acquisitions, earnings on operations came to 25 cents a share, matching the Thomson Financial/First Call consensus estimate, which was revised downward two weeks ago after the Emeryville, Calif., company warned that delays in corporate-technology spending would crimp its revenue for the quarter. Revenue was $229.1 million, up 1% from $226.8 million. Sybase said that in 2001 it expects to report earnings of $1.10 to $1.20 a share on revenue of $1.1 billion. Thomson Financial has an annual earnings estimate of $1.29 a share from a survey of six analysts. Sybase released its results after the end of regular trading. At 4 p.m. Thursday in Nasdaq Stock Market trading, Sybase climbed 80 cents, or 4.9%, to $17.07.
Commerce One Meets Lowered 1st-Quarter Estimates
Commerce One Inc., a bellwether in business-to-business software, met lowered expectations for its first-quarter loss from operations and for revenue. The Pleasanton, Calif., company reported a loss including acquisition costs and other nonrecurring items of $228.5 million, or $1.02 a share, compared with a year-earlier loss of $43.6 million, or 29 cents a share. Excluding those items, Commerce One's per-share loss was 11 cents, matching a company projection this month and analysts' updated consensus by Thomson Financial/First Call. Revenue grew more than fourfold, to $170.3 million from $35 million. Commerce One, which sells software and services used by electronic exchanges, has been affected by a slow-down in technology spending. The company also announced it has adopted a takeover defense known as a poison-pill plan. It added that the measure was not taken in response to any attempt to acquire it. At 4 p.m. Thursday on the Nasdaq Stock Market, Commerce One was up 34%, or $3.50, to $13.71, in reaction to a surprisingly good earnings report from SAP AG, a German technology company that operates in the same market.
IBM Agrees to Acquire Mainspring for $80 Million
International Business Machines Corp., Armonk, N.Y., agreed to acquire Mainspring, a small Cambridge, Mass., computer-services and consulting firm, for $80 million, or $4 a share. Mainspring had traded as low as $1.50 a share recently but rose in the past week. It gained 19 cents to $3.20 Thursday in 4 p.m. Nasdaq Stock Market trading. IBM said Mainspring will be added to its global-services business.
Conexant Systems Misses Estimates, Expects Losses to Grow
Conexant Systems Inc. reported a fiscal second-quarter loss that missed already lowered expectations and warned that losses for the current quarter would be wider than Wall Street forecasts, as the company faces "significant near-term challenges" in the market for chips used in communications applications. Conexant, Newport Beach, Calif., said its net loss for the period ended March 31 was $262 million, or $1.08 a share, nearly double the year-earlier loss of $132.3 million, or 64 cents a share. Before nonrecurring items, Conexant said its loss was 39 cents a share, wider than an analysts' forecast for a loss of 37 cents a share that reflected a company warning in March. The company warned that its loss excluding nonrecurring items in the current quarter would grow to between 40 cents to 45 cents, bigger than the 32 cents a share forecasted by Thomson Financial/First Call. Revenue in the latest period declined 50% to $251 million from $501.7 million. The company said it expected revenue to drop about 15% in the current quarter from the previous quarter. As of 4 p.m. Thursday, Conexant shares were up 66 cents to $12.45 in trading on the Nasdaq Stock Market.
Polaroid's 1st-Quarter Loss Widened Amid 18% Revenue Drop
Polaroid Corp. reported a first-quarter operating loss that was slightly wider than analysts' projections as revenue in the seasonally slow quarter fell 18%. The maker of instant cameras and film said its operating loss was $38 million, or 85 cents a share, compared to a year-earlier net loss of $1.4 million, or three cents a share. Analysts surveyed by Thomson Financial/First Call were expecting a loss of 79 cents a share. For the latest quarter, an $80 million pretax restructuring charge increased the net loss to $90.9 million, or $1.98 a share. Revenue fell to $331 million from $402 million, due to overseas retailers reducing their inventories. U.S. sales fell just 2% but European sales dropped 29% and Asian sales were down 42%. The Cambridge, Mass., company expects sales to pick up later in the year, driven by new products including digital printing systems to be unveiled next month and a planned advertising campaign. In 4 p.m. New York Stock Exchange composite trading Thursday, Polaroid rose 17 cents to $3.81.
Be Hires Investment Bank to Explore Sale of Firm
Be Inc., Menlo Park, Calif., a once-prominent technology company founded by entrepreneur Jean-Louis Gassee, said it hired an investment bank to explore selling the company or other strategic transactions. Be said it engaged ING Barings LLC to explore various alternatives to "maximize shareholder value on a near-term basis," but didn't disclose whether any negotiations are under way. Mr. Gassee, a well-known former Apple Computer Inc. executive, founded the company in 1990. It has unsuccessfully tried to popularize its operating software, focusing most recently on software for Internet appliances and digital media. Be Thursday reported a first-quarter net loss of $5.5 million, or 15 cents a share, compared with a year-earlier loss of $6 million, or 17 cents a share. Revenue plunged to $100,000 from $254,000. Be's stock is well off its 52-week high of $10. Its shares were down five cents to 95 cents in Nasdaq Stock Market trading as of 4 p.m. Thursday, before the announcements were made.
GTR to Sell Business to SwapIt
GTR Group Inc., Brampton, Ontario, agreed to sell its value-priced video-game business and related infrastructure, including ZapYou, to SwapIt Inc. of Maynard, Mass. Terms weren't disclosed, although the company said it will receive cash, notes and a minority stake in SwapIt. GTR, an interactive entertainment company, also said the transaction is subject to customary pre-closing conditions and is expected to close within six weeks.
Nvidia Buys 3dfx Assets for $55 Million
Nvidia US Investment Co. a unit of Nvidia Corp., paid $55 million in cash for substantially all the assets of 3dfx Interactive. The deal will allow the patent-infringement suits between the companies to be jointly dismissed with prejudice. Nvidia and 3dfx had signed an asset-purchase agreement in December for Nvidia US Investment Co. to purchase certain 3dfx graphics assets such as patents, patent applications, trademarks and brand names. Nvidia, Santa Clara, Calif., said Thursday that 3dfx may receive additional cash or stock consideration. |
