Markets & Finance

Bad Tidings for Big Tech Names


Cisco Systems (CSCO) will reportedly cut its workforce. S&P says, contrary to wire reports, the company hasn't announced layoffs. But S&P downgraded its opinion on heightened risks for lengthening of the tech downturn and its spread to regions outside the U.S.

Ameritrade (AMTD) says 39,000 new accounts were opened in February. Pacific Crest says new accounts are lower than expected and would avoid online brokerage stocks.

i2 Technologies (ITWO) agreed to acquire privately-

held RightWorks, a provider of e-procurement and e-commerce solutions, for 5.3M i2 shares. S&P maintains hold.

Teradyne (TER) cut its previous 20% Q1 sequential revenue decline forecast to a 35% decline. JP Morgan cut estimates. SG Cowen plans to cut estimates. S&P maintains avoid.

U.S. Airways' (U) shares are seen lower on reports that continued

antitrust scrutiny, and intensifying congressional and union opposition to the United/U.S. Airways deal have some concerned that the acquisition may

not go through as smoothly as the airlines had hoped.

Barr Labs (BRL) says it's reviewing the contents of a

letter from the FDA regarding the appropriate application of Pediatric and Generic Exclusivity on Prozac. Barr says the assertions in the letter are legally flawed.

Intel Corp. (INTC) sys Q1 revenue will be about 25% below Q4's $8.7 billion. Intel plans to reduce workforce by 5,000. S&P downgraded. Prudential reportedly downgraded. USB Piper cuts estimates.

Lehman reportedly downgraded Commerce One (CMRC) to market perform from buy. The firm also reportedly downgraded PurchasePro.com (PPRO) and Ariba (ARBA).

Goldman says Intel's preannouncement will likely raise questions about the strength of Microsoft's (MSFT) Q3.

Robertson Stephens says given Compaq's (CPQ) exposure to the Intel-based server market, the firm cut its $1.15 2001 EPS estimate to $1.00, and its $1.35 2002 estimate to $1.25.

Barrett Resources (BRR) rejected Shell Oil Co.'s unsolicited proposal to acquire the company but will seek alternatives to maximize shareholder value.

USFreightways (USFC) says that due to the economic slowdown and extreme weather it expects Q1 EPS to be very substantially below the current consensus estimate. S&P maintains hold.

Lehman made negative comments on eBay (EBAY), saying investors should stay on the sidelines.

Prudential downgraded DaimlerChrysler (DCX) to sell.

RF Micro Devices (RFMD) reduced its Q4 revenue guidance to $55M from about $72M.

Due to increased weakness in the telecommunications systems market in North America, Transwitch Corp. (TXCC) expects Q1and Q2 revenue to be sequentially flat and sees $0.16-$0.17 Q1 EPS.

Intersil Holding (ISIL) sees $0.05 Q1 EPS (adjusted) on revenue, excluding sales from its Discrete Power products, about 25% lower than

Q4. The firm set a $50M stock buyback.

Dean Foods (DF) sees lower than expected $0.45-$0.47 Q3 EPS and $2.50-$2.55 fiscal 2001. Dean says it is working with Goldman Sachs to explore strategic financial alternatives.

Silicon Labs (SLAB) sees a $0.03-$0.05 Q1 loss from operations on $13M-$15M in revenue, below previous guidance.

Merrill reportedly downgraded Motorola (MOT)

Vascular Solutions (VASC) sees $3.1M-$3.4M Q1 revenue, representing 20% sequential growth and expects gross margins of slightly

over 60%, with a net loss of $0.17-$0.20.

AnnTaylor Stores (ANN) posted $0.18 vs. $0.50 Q4 EPS from operations on 4.3% same store sales decline.


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