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 (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.

Later, Baby

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