From Briefing.com: 6:58PM KLA-Tencor: Fitch revises outlook on KLA-Tencor to negative; affirms IDR at 'BBB' (KLAC) 19.54 -1.79 : Co announed that Fitch Ratings has revised the Rating Outlook on KLAC to Negative from Stable and affirmed the following ratings: Issuer Default Rating (IDR) at 'BBB'; Senior Unsecured Debt at 'BBB'. The revised Outlook reflects Fitch's expectations that KLAC's revenues will be meaningfully lower than previously anticipated and potentially result in negative free cash flow for the fiscal year 2009 ending June 30, 2009. Consistent with Fitch's expectations for semiconductor equipment industry revenues declining by at least 20% in calendar year 2009, Fitch had anticipated weaker revenues for KLAC over the near-term. Nonetheless, KLAC recently lowered its new orders and revenue guidance for its second fiscal quarter ended Dec. 31, 2008. The co now expects new orders were $235-245 mln, 25% lower than the original expectations of $325 mln. KLAC expects revenues were ~$390-400 mln (6% lower than the ~$420 mln initially projected) and that the co will post an operating loss even after adjusting for an anticipated write-down of goodwill and intangible assets.
5:01PM Mattson expects that it will take a charge of approximately $18 million against goodwill, $7 million against intangibles and $3 million against fixed assets in Q4 (MTSN) 1.10 -0.20 : The co announces that the Company has concluded its annual evaluation of the value of its goodwill, long-lived and intangible assets for potential impairment, as required under Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets" and SFAS No. 144, "Accounting for the Impairment of Long-Lived Assets." Based on the results of that evaluation, Mattson expects that it will incur material non-cash impairment charges related to its goodwill, intangible assets and fixed assets in the fourth quarter of fiscal 2008. Specifically, the Company expects that it will take a non-cash impairment charge of approximately $18 million against goodwill, $7 million against intangibles and $3 million against fixed assets.
4:16PM Analog Devices sees Q1 EPS of $0.15-0.17, down from $0.22-0.23 vs consensus is $0.22 (ADI) 18.77 : Co issues downside guidance for Q1 (Jan), sees EPS of $0.15-0.17 down from $0.22-0.23 vs. $0.22 First Call consensus; sees Q1 (Jan) revs is expected to decline by approx 25% to 30% compared to Q4, due to additional weakness in end demand and inventory reductions across the supply chain as a result of continued deterioration of global economic conditions, this calculates to ~$462.49 - $495.52 mln vs. $520.73 mln consensus.
4:08PM Cree reports Q2 (Dec) results, beats on revs; guides Q3 EPS below consensus, revs below consensus (CREE) 16.49 -1.44 : Reports Q2 (Dec) earnings of $0.12 per share, includes $0.05 related to the patent licensing fees, as well as a franchise tax benefit, which was not factored into previously announced targets, may not be comparable to the First Call consensus of $0.09; revenues rose 24.0% year/year to $147.6 mln vs the $141.4 mln consensus. Co said, "In the third quarter of fiscal 2009, we expect that lower demand for our products in consumer, mobile and automotive applications will be partially offset by growth in LED sales for commercial lighting applications. As we look ahead to calendar 2009, we are targeting that LED lighting adoption will continue to gain momentum as product availability increases and recognition of the benefits grows from new installations like the Federal Reserve and the planned Pentagon renovation." Co issues downside guidance for Q3, sees EPS of $0.05-0.08, excluding $0.03 amortization of acquired intangibles, vs. $0.09 consensus; sees Q3 revs of $128-135 mln vs. $139.43 mln consensus.
4:35 pm : Financial stocks tumbled 16.7% Tuesday, registering their worst single-session decline since a 17% drop Dec. 1. Ongoing weakness in the financial sector has rekindled pessimism in the broader market.
Losses in both the financial sector and the S&P 500 mounted steadily as the session progressed. The selling effort took the S&P 500 past December lows as roughly 97% of the companies in the index finished the session with losses.
Investment services outfit State Street (STT 14.89, -21.46) saw its market cap halved after it updated late last week certain risk factors, and indicated certain cash-like investments have lost value, which has the company holding some $5.5 billion in unrealized after-tax losses. The disclosures overshadowed better-than-expected fourth quarter earnings.
Citigroup (C 2.80, -0.70) continues looking to narrow its operational focus as it moves away from its status as a financial supermarket amid ongoing challenges. Reports indicate Citigroup is looking to divest its Japanese retail brokerage unit after recently selling part of its U.S. unit, Smith Barney, to Morgan Stanley (MS 13.10, -2.49). After the closing bell Citi announced it is slashing its quarterly dividend to a penny per share from $0.16 per share.
Shares of Citi, along with other major financial services giants JPMorgan Chase (JPM 18.09, -4.73) and Bank of America (BAC 5.10, -2.08) all closed near multiyear lows amid the realization that banks have a long, arduous path to recovery.
A week ago the trio reported their latest quarterly results, which helped spur a 16.5% weekly loss in the sector.
European bank shares were also under stiff pressure. Royal Bank of Scotland (RBS 3.33, -7.52) may face a record loss valued at more than $40 billion for 2008, which has the British government considering increasing its stake in the bank by converting preferred stock into common shares. Shares of RBS dropped more than 70% in U.S. trading.
Barclays (BCS 4.16, -3.09) fell more than 40% this session as investors remain concerned Britain's government will take a stake in the outfit. The fears were compounded by word the government may be making broader efforts to restore the country's banking system, which many believe smacks of nationalization.
Though financials fared the worst, all 10 of the major economic sectors succumbed to selling pressure. Even defensive-oriented sectors like utilities (-1.0%), consumer staples (-1.5%), and health care (-2.6%) were hit.
Health care giant and Dow component Johnson & Johnson (JNJ 56.75, -0.69) finished lower as investors weighed word that the company expects 2009 earnings to range between $4.45 and $4.55 per share after earning $4.55 per share last year. The consensus calls for $4.60 per share, underscoring the company's tepid outlook. Still, Johnson & Johnson reported fourth quarter earnings of $0.94 per share, which exceeded expectations by $0.02.DJ30 -332.13 NASDAQ -88.47 SP500 -44.90 NASDAQ Dec/Adv/Vol 2350/362/2.02 bln NYSE Dec/Adv/Vol 2785/321/1.72 bln
2:34AM Research In Motion considers alternatives as a result of court order obtained by Certicom (RIMM) 51.11 : Co announces that the Ontario Superior Court of Justice has issued an order enjoining the offer by RIMM's wholly-owned subsidiary for all of the common shares of Certicom at a price of Cdn$1.50 per common share. As a result of the court order, Certicom shareholders will not be able to accept the Offer, and if another offer materializes for Certicom, RIMM cannot, without Certicom's prior written consent, participate in an auction for Certicom. RIM believes this could hinder the value maximization process undertaken by Certicom. RIMM is reviewing the court's reasons for decision and is considering any alternatives available to it as a result of the court order, including a possible appeal.
09:39 am EMC Corp downgraded to Hold at Collins Stewart: . Collins Stewart downgrades EMC to Hold from Buy. The firm notes that the financial services industry has been EMC's best friend for many years and while the co has a broad business, there is no doubt, in the firm's mind, that EMC will see a significant drop in business from this critical sector of the market. As a result, the market for the co's Symmetrix products is likely going to be smaller than it has been for many years. In response, EMC has started discounting aggressively which should help them retain accounts but with significantly slimmer margins for several quarters to come. The firm believes that like many companies right now, EMC is going to have to decide how to get by with less income.
09:31 am Microsoft (MSFT)
According to reports from the New York Times, executives from Microsoft (MSFT 19.71) and Yahoo! (YHOO 11.59) met in New York last week.
The New York Times, citing sources briefed on the meeting, reported that Steve Ballmer, Microsoft's chief executive, met with Roy Bostock, Yahoo's chairman. The meeting suggests, according to the Times, that negotiations over a Web search deal between the two companies could be restarting.
Microsoft and Yahoo both declined to comment.
Yahoo recently named Carol Bartz its new chief executive, a move that renewed speculation regarding possible search engine deals.
(Disclosure: Briefing.com has a business relationship with Yahoo and Microsoft.)
finance.yahoo.com
The only thing good from the bullish perspective was the volume was lowish on the break lower today.
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