Markets & Finance

Tech Spending Slowdown Hits CNET


First Union downgraded Art Technology (ARTG) to market perform from buy.

Cree (CREE) expects $45M-$48M Q4 revenue and $0.14-$0.16 EPS. S&P, Banc of America and Prudential cut estimates. The shares were trading sharply lower.

Banc of America says concerns about Express Scripts 's (ESRX) capital software development costs are unjustified, and views the weak stock price as a buying opportunity.

Due to tech-sector spending slowdown, CNET Networks (CNET) sees lower than expected $75-$80M Q1 revenues and $5M-$12M Q1 EBITDA. Friedman Billings cites uncertainty in the online advertising market.

Korn Ferry (KFY) says it is comfortable with $0.81 fiscal 2001 (Apr.) consensus and sees $1.40 fiscal 2002. The firm posted $0.18 vs. $0.23 Q3 EPS as higher costs offset a 28% revenue rise.

Salomon Smith Barney downgraded Brocade (BRCD) to outperform from buy, as well as EMC (EMC) and InRange Tech (INRG) (See Word on the Street ).

Genentech (DNA) and Novartis (NVTS) say FDA advised them that it won't convene a scheduled Pulmonary-Allergy Drugs Advisory Committee meeting on April 26 at which time it was going to review BLA for Xolair (See Stock Picks & Pans ).

Waste Management (WMI) posted $0.29 Q4 EPS (pro forma). S&P maintains accumulate (See Stock Picks & Pans ).

Prudential cut its estimates and price target on Exar Corp. (EXAR)

Merrill says Sun Microsystems's (SUNW) largest resellers are carrying excess inventory. (See Word on the Street ).

Chris & Banks (CHBS) posted 23% higher February same store sales and 93% higher total sales.

Salomon Smith Barney downgraded Webmethods (WEBM) to neutral from outperform.

Michaels Stores (MIKE) posted $1.52 vs. $1.41 Q4 EPS from operations on 4% higher same store sales (after giving effect to accounting change). The company also posted slightly higher February same store sales. S&P downgraded.

Best Buy (BBY) expects to meet or exceed $0.81 Q4 consensus estimate. The consumer-electronics chain posted 1.8% higher Q4 same store sales and 23% higher total sales.

Shares of Yahoo! (YHOO) are sharply lower after trading was halted yesterday. The company sees breakeven results in Q1 on revenues of $170M-$180M. The online media company has initiated a search for a new CEO to replace Timothy Koogle, and has set a $500M share buyback plan. SG Cowen downgraded to sell; Merrill Lynch also downgraded. S&P and Prudential maintain their hold recommendations. (See Word on the Street and Stock Picks & Pans ).

Tellabs (TLAB) sees $0.35-$0.38 Q1 EPS on sales of $830M-$865M, and EPS of $2.13-$2.17 for all of 2001. The company cites below-trend growth in its CABLESPAN business, and its inability to recognize revenue from shipments of its new TITAN 6500 system in Q1. (See Word on the Street and Stock Picks & Pans ).

The FDA issued a warning following inspection of Eli Lilly's (LLY)

injectable product facility in Indianapolis that identified deficiencies in areas such as quality control and validation practices.

Tibco Software (TIBX) sees lower than expected $80M-$84M Q1 revenue.

The company cites the slowing U.S. economy and delayed IT spending.

Alpha Industries (AHAA) sees $0.05 Q4 EPS on sales of about $54M. Alpha cites the economic downturn and continued softness in the wireless handset and infrastructure markets.

Alliance Fiber (AFOP) sees breakeven-$0.01 Q1 EPS on revenue of $7M-$7.5M and $0.03-$0.05 2001 EPS on $40M in revenue. Alliance cites a slowdown in shipments due to lower level of new orders.

MKS Instruments (MKSI) sees $100M-$109M Q1 revenues, 15%-20% less than previously estimated. MKS cites a slowdown in demand from OEM customers. The company plans to reduce its workforce.

American Eagle (AEOS) posted 4.5% lower Feb. same store sales, 20% higher total sales (results from US operations).

Krispy Kreme (KREM) posted $0.30 vs. $0.11 Q4 EPS on a 15% rise in same store sales. The company sees $0.34 Q1 EPS and $1.38 for all of fiscal 2002.

Costco Wholesale (COST) posted $0.38 vs. $0.39 Q2 EPS as higher expenses offset a 2% same store sales rise. Costco posted 5% higher Mar. same store sales and 11% higher total sales.

Goody's Family (GDYS) posted 14% lower Feb. same store sales and flat total sales. Goody's says a poor retail environment resulted in lower than plan same store sales.

Aegon (AEG) will acquire J.C. Penney's (JCP) Direct Marketing Services operations for $1.3B cash.

Universal Access (UAXS) reaffirmed it $25M Q1 revenue and $155M-$160M 2001 guidance, and its forecast of EBITDA profitability by Q2 of 2002.

Intimate Brands (IBI) posted a 5% Feb. same store sales decline and a 2% total sales decline.


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