AFTER HOURS
Qualcomm halted ahead of release
By Nicole Maestri, CBS.MarketWatch.com
Last Update: 4:34 PM ET Nov. 6, 2001
NEW YORK (CBS.MW) - Shares of wireless technology company Qualcomm were halted for
trading in after-hours action Tuesday, ahead of its fourth-quarter report.
While investors awaited Qualcomm's
results, Maxim Integrated Products and
Optical Communication Products
posted their quarterly numbers after the
closing bell.
Maxim edged higher in late-session
trading after the company's first-quarter
earnings figures were better than
expected. But Maxim gave a cautious
outlook, as did Optical Communication
Products. The fiber optics subsystems
company reported fourth-quarter results
but warned of a shortfall in first-quarter
revenue.
The Nasdaq-100 After Hours Indicator
gained 7.5 points to 1530. The indicator
tracks the performance of the Nasdaq's
leading stocks in after-hours trading.
Reassured by an aggressive
50-basis-point rate cut by the Federal
Reserve, sent stocks soaring on
Tuesday ahead of the closing bell. The
rate cut was the central bank's tenth
this year, and it took the overnight fed
funds rate down to 2 percent from 6.5
percent at the start of the year. The Dow
Jones Industrial Average ($INDU: news,
chart, profile) gained 150 points, or 1.6
percent, to 9,591. The Nasdaq
Composite ($COMPQ: news, chart,
profile) added 41 points, or 2.3 percent, to 1,835. Read Market Snapshot.
Maxim Integrated Products
Maxim Integrated Products (MXIM: news, chart, profile) reported first-quarter net income of $61.3
million, or 17 cents per share, compared with $119.1 million, or 33 cents per share, in the same
period a year earlier. Analysts, on average, were expecting earnings of 16 cents per share on revenue
of $231.2 million. Maxim said revenue slid to $239.4 million from $422.3 million.
"While we are encouraged by the increase in order rates, we remain cautious about our short-term
revenue outlook because of customers' backlog situations and their unwillingness to commit to
inventories and longer term orders due to short lead times," said Jack Gifford, chairman and CEO, in
a statement.
Gifford said the company expects that second-quarter revenue and earnings will increase "only
slightly" over first quarter.
Shares, which closed up 6.3 percent at $54.16 ahead of the report, rose to $54.29 on the Island
ECN.
Optical Communication Products
Optical Communication Products (OCPI: news, chart, profile) reported a fourth-quarter net loss of
$3.3 million, or 3 cents per share, compared with net income of $8.5 million, or 9 cents per share, for
the same period in fiscal 2000. Analysts, on average, were expecting earnings of 2 cents per share.
The manufacturer of fiber-optic subsystems said revenue decreased 54.7 percent to $14.9 million
from $32.8 million.
"The current economic environment and downturn in the telecommunications industry continues to
limit the company's visibility with respect to its long-term revenue forecasts," the company's
statement said.
The company sees first-quarter revenue in the range of $7 million to $9 million. Analysts, on average,
are currently expecting first-quarter revenue of $16.35 million, according to Thomson Financial/First
Call.
Shares closed up nearly 24 percent at $3.71 ahead of the report and were halted for evening trading
action.
Qualcomm
When Qualcomm (QCOM: news, chart, profile) posted third-quarter figures, it said it expected
fourth-quarter pro forma profit to reach 25 cents per share, in line with analysts' expectations. The
company said revenue should increase by 10 percent from the third quarter, which amounts to
around $704 million -- slightly higher than analysts' expectations.
Analysts are looking for Qualcomm to earn 25 cents per share on revenue of $692 million.
Shares closed the regular session up 3.1 percent at $54.73. |
