DreamWorks Animation Falls

Helix Technology to be acquired by Brooks Automation; Komag boosts guidance; plus more of Monday's stocks in the news

DreamWorks Animation (DWA ) shares were lower Monday after the company said it sees a second quarter loss of 7 cents to 9 cents a share. It also cut its 2005 guidance to EPS of 80 cents to 90 cents. DreamWorks withdrew its secondary offering of $500 million of Cl.A common stock. Harris Nesbitt reportedly downgrades to neutral from outperform.

Parlux Fragrance (PARL ) shares were higher after the company said it is exploring strategic alternatives to enhance shareholder value -- including the possible sale of the company.

UTStarcom (UTSI ) signed approximately $100 million in infrastructure contracts with China Telecom (CHA ) for expansion of its IP-Based PAS networks. UTStarcom will also supply China Telecom with approximately $85.2 million worth of PAS handsets. S&P maintains hold.

In response to a $700 million purchase offer from investor group Goodman and Chesnoff, WPT Enterprises (WPTE ) says the offer failed to provide sufficient information for it to determine its credibility. The shares were lower Monday.

IMS Health (RX ) agreed to be acquired by VNU (VNU ) for about $7 billion. Terms of the deal call for IMS shareholders to receive $11.25 cash and 0.60415 VNU share per IMS share.

Helix Technology (HELX ) agreed to be acquired by Brooks Automation (BRKS ). Terms of the deal call for Helix shareholders to receive 1.11 Brooks shares for each helix share held.

Komag (KOMG ) raised its second quarter revenue guidance to about $172 million, representing sequential revenue growth of over 20%. The company cites strong shipments during the quarter to all four major disk drive customers.

The Wall Street Journal reports that Kohlberg Kravis Roberts and Silver Lake have emerged as the leading bidder to buy Agilent Technologies' (A ) chip-products business in an auction that is expected to fetch as much as $2.5 billion. S&P reiterates hold.

Mylan Labs (MYL ) posted preliminary first quarter earnings per share of 24 cents to 26 cents (as adjusted).

Able Laboratories (ABRX ) continues to review matters related to recall of its products and suspension of manufacturing operations, and is evaluating all potential options in light of the regulatory and financial issues it faces, including the possibility of filing for bankruptcy.

Pogo Producing (PPP ) agreed to acquire all of the stock of Northrock Resources Ltd., a wholly owned Canadian subsidiary of Unocal (UCL ), for $1.8 billion in cash.

Pilgrim's Pride (PPC ) raised its third quarter EPS guidance from a range of 81 cents $1.00 to a range of $1.17 to $1.22 due to better results in both its U.S. and Mexico chicken operations.

CNBC reports Steven Crawford is to resign as Morgan Stanley (MWD ) co-president. Zoe Cruz will continue as sole president. Separately, new CEO John Mack reportedly says he would amend certain financial terms of his contract.

D&K Healthcare (DKHR ) agreed to be acquired by McKesson (MCK ) for $14.50 per share in cash.

Morningstar (MORN ) says the SEC has issued request for information via subpoena to Morningstar Associates LLC, relating to services Morningstar Associates offers to retirement plan providers.

Prudential reportedly upgraded Procter & Gamble (PG ) to overweight from neutral.

According to a Barron's article, Norfolk Southern's (NSC ) fans, including several transportation analysts, herald the railroad's efforts to modernize; they expect stock to top $40 over next 12 months.

Cruzan International (RUM ) agreed to merge with a subsidiary of The Absolut Spirits Co. Each issued Cruzan share would be converted into right to receive $28.37 in cash.

LG.Phillips (LPL ) posted second quarter operating profit of 29 billion Korean won (US$28 million) vs. operating profit of 771 billion won ($745 million) one year earlier on a slight sales decline and a 46% increase in cost-of-goods sold. The company believes third quarter area shipments will increase sequentially by a percentage rate in the mid-teens.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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