Markets & Finance

Hewlett-Packard Sees Weak First Half


Ariba Inc. (ARBA) posted $0.05 Q1 EPS vs. a $0.04 loss from operations on a sharp revenue rise. The company sees $0.06 Q2 EPS on $180M-$185M in revenues and $0.25-$0.26 fiscal 2001 EPS on $780M-$790M in revenues. ABN Amro downgraded its rating on the shares to add from buy.

Sipex Corp. (SIPX) sees $23M-$27M Q4 revenue. The company cites production delays, higher than expected cancellations and rescheduling of orders from distributors.

CS First Boston downgraded Lexmark International (LXK) shares to hold from buy.

Catalina Marketing (POS) posted $0.29 vs. $0.29 Q3 EPS despite 11% revenue rise. The company sees $0.23-$0.25 Q4 EPS on 15%-17% revenue growth. Morgan Stanley DW downgraded the stock to neutral from strong buy.

SAFECO Corp (SAFC)sees a $0.05-$0.10 Q4 loss from operations. The company cites inclement weather and the bankruptcy declaration of customer SAFC had bonded.

Gateway (GTW) posted $0.12 vs. $0.38 Q4 EPS from operations on a 6.9% revenue decline. The company sees $1.44 2001 EPS from operations on 3% revenue growth. Gateway will reduce its worldwide workforce in Q1 by more than 10%; to take $50M Q1 pre-tax charge.

DoubleClick Inc (DCLK)posts breakeven Q4 vs. a $0.02 per share loss (pro forma) on 41% revenue rise. The company also sees a $0.07-$0.09 Q1 loss (pro forma) on revs of about $110 million to $115 million. Banc of America cut its estimates.

Hewlett-Packard (HWP) sees $0.35-$0.40 Q1 EPS vs. the Wall Street mean estimate of $0.42 on low-to-mid-single digit revenue growth. The company does not see improvement in the first half of fiscal 2001. S&P maintains its hold recommendation.

Jabil Circuit (JBL) entered a deal with MARCONI which includes divestiture of certain Marconi Communications Manufacturing operations to JBL. Revenues are expected to exceed $4 billion over three years. Prudential upgraded the stock to strong buy.

Rambus Inc (RMBS) posted $0.12 vs. $0.03 Q1 EPS from operations on a sharp revenue rise. The company says it is unlikely Q2 SDRAM royalties will exceed current levels. Morgan Stanley DW cut its fiscal 2001 EPS estimate.

America Online completed its acquisition of Time Warner, forming the Internet and media giant known as AOL Time Warner (AOL).

Rambus Inc. (RMBS) posted $0.12 vs. $0.03 Q1 EPS from operations on a sharp revenue rise. With a price decrease for SDRAMs in the December quarter, it is unlikely royalties for these products in the March quarter will exceed current levels, according to the company.

TriQuint Semiconductor (TQNT) sees better than expected 2000 revenue of $300.6M.

DoubleClick (DCLK) posted breakeven results in Q4 vs. a $0.02 loss (pro forma) on a 41% revenue rise. The company sees a $0.07-$0.09 Q1 loss (pro forma) on revenues of about $110M-$115M.

Closure Medical (CLSR) sees $0.15-0.20 2001 EPS on $18M-$20M in revenues. Robertson Stephens downgraded the shares to long term attractive from buy.

NCR Corp. (NCR) sees $1.00-$1.05 Q4 EPS vs. the consensus estimate of $1.14 due to a soft retail environment. The company restated previous guidance of $2.80-$2.90 2001 EPS.

Sensormatic (SRM) sees lower than expected $0.20-$0.21 Q2 EPS on $281M revenues due to foreign exchange impact. The company sees 35% 2001 EPS growth.

Kelly Services (KELYA) sees $0.64-$0.66 Q4 and $2.42-$2.44 2000 EPS vs. the consensus estimates of $0.71 and $2.50, respectively. The company cites a rapid economic slowdown, foreign exchange effects, and turnover of senior management in the U.K.

Catalina Marketing (POS) posted lower than expected $0.29 vs. $0.29 Q3 EPS despite an 11% revenue rise. The company sees $0.23-$0.25 Q4 EPS on 15%-17% revenue growth.

ABIOMED (ABMD) revised its $11.50 offer to acquire Thermo Cardio (TCA) to consist of $9.00 in ABMD stock and a minimum of $2.50 cash from its previous offer of $10.00 in ABMD stock and $1.50 cash.

Elcor Corp. (ELK) sees $0.04-$0.05 Q2 EPS, vs. First Call's $0.16 estimate on $68M-$69M in sales. Th company cites lower residential asphalt roofing products sales, high costs for asphalt and petroleum products, and competitive product pricing.

G&K Services (GKSRA) sees $0.38-$0.39 Q2 EPS vs. the consensus estimate of $0.51. G&A cites higher natural gas prices, lower than anticipated revenue, and one under-performing region.

Prologis Trust (PLD) sees $2.38-$2.42 2001 funds from operations (FFO). The company set a $100M stock buyback.

Cree Inc. (CREE) posted $0.18 vs. $0.08 Q2 EPS on a 67% revenue rise.

MIPS Technolog (MIPS) posted $0.14 vs. $0.17 Q2 EPS on flat revenue. The company says CONEXANT's Internet Infrastructure unit has been assigned a MIPS license for MIPS64 5Kc processor core.

King Pharma (KG) says it is not interested in acquiring CARTER-WALLACE's pharmaceutical business.

Carreker (CANI) will be added to the S&P SmallCap 600 Index after the close of trading on a date to be announced, replacing TELCOM SEMICONDUCTOR, which is being acquired.


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