Markets & Finance

ONI Systems Soars on Expanded Link with Qwest


Shares of ONI Systems (ONIS) were sharply higher following news that the company expanded its relationship with Qwest Communications for additional local broadband equipment. CS First Boston reiterated strong buy.

Morgan Stanley cut the estimates and the target price on JDS Uniphase (JDSU) but maintained its outperform rating.

Tucker Anthony upgraded DMC Stratex Networks (STXN) to buy from market perform. On Wednesday Stratex forecast $0.09-$0.11 Q4 EPS from operations.

Apparel and shoe maker Christopher & Banks (CHBS), owner of Braun's Fashions Corp., posted 18% higher March same-store sales and 44% higher total sales. Tucker Anthony says March comparisons are well above the company's plan, and maintains strong buy.

Phoenix Technology (PTEC) says lower than expected Q2 revenue will result in a loss of about $0.17-$0.19. Prudential downgraded to hold from strong buy.

Yahoo (YHOO) will market on-demand subscription music service created by Duet, a joint venture between Vivendi and Sony Music entertainment. Earlier Lehman Brothers upgraded Yahoo to buy from market perform.

ABN Amro reiterated its buy rating on Analog Devices (ADI).

BEAS Systems (BEAS) is seen higher on a report the company reaffirmed its Q1 guidance.

Robinson Humphrey upgraded Administaff (ASF) to buy from outperform. The company noted the analyst upgrade.

S&P maintains accumulate on Autodesk (ASDK)

Needham upgraded Xilinx (XLNX) to strong buy from buy, and bumped the $45 target to $46.

Needham upgraded Juniper Networks (JNPR) to strong buy from buy.

Microsoft will license Speechworks International's (SPWX) speechify engine to supports its Speech API 5.0.

CS First Boston downgraded Kroger (KR) to hold from buy.

Peregrine System (PRGN) sees $0.16 Q4 EPS from operations on $105M in license revenues and $170M total revenue, saying the forecast is in line with consensus expectations and its guidance. First Albany reiterates strong buy. S&P ranked the shares 'accumulate.'

Ace Cash (AACE) sees a $0.41-$0.43 Q3 loss on revenues of about $59.8M, citing accelerating store closures and increased loan loss provision. Southwest Securities reportedly downgrades to neutral from buy.

Sierra Wireless (SWIR) cut its Q1 guidance to $0.04 EPS on $22.4M revenues, and cut the Q2 guidance to $0.03 EPS on $24M revenues. CIBC World cut estimates and maintains strong buy.

UBS Warburg initiated coverage on Morgan Stanley (MWD) Lehman Brothers (LEH), Goldman Sachs (GS) and Merrill Lynch (ML) with buy.

DB Alex Brown reiterated its buy on eBay (EBAY) and recommended investors build or add to their positions.

Banc of America initiated coverage of Seattle Genetics (SGEN) with buy.

Emulex Corp. (EMLX) sees $0.3 Q3 EPS from operation (pro forma) on $59M-$60M revenues, citing continuation of a downturn in its Fibre Channel host bus adapter demand.

Dollar Tree (DLTR) posted flat Q1 same-store sales and 18% higher total sales. Although Q1 sales are slightly above guidance, Q2 same-stores sales could decrease by more than 10%. The company maintains its guidance disclosed in the 8-K.

Merrill downgraded Micron Technology (MU) to near-term neutral from buy and downgraded Applied Micro Devices (AMD) to near-term neutral from accumulate.

Standard Microsystems (SMSC) posted breakeven Q4 vs. $0.02 EPS from continuing operations on a 4.4% revenue decline.

Goldman upgraded Black & Decker (BDK) to market outperform from market perform, and has a $45 target.

Crayfish (CRFH) announced that its five corporate auditors resigned subject to the appointment of successors in office.

Dell Computer (DELL) confirmed its Q1 guidance of revenues of $8B and EPS of $0.17. S&P maintains hold. Bear Stearns maintains attractive.

Fedex Corp. (FDX) says it's unlikely it will hit its prior Q4 EPS forecast of $0.85-$0.90. The firm sees worse than expected 4.4% US domestic express package volume.

Dean Foods (DF) agreed to be acquired by Suiza Foods in a deal valued at $2.5B. Terms: Dean Food shareholders to receive $40.92 per share ($21 in cash and 0.429 Suiza share).

Bed Bath & Beyond (BBBY) posted $0.22 vs. $0.17 Q4 EPS on 4.9% higher same store sales and 31% higher total sales.

Supervalu (SVU) posted $0.46 vs. $0.52 Q4 EPS from operations on flat revenue. The discount retailer sees $0.43-$0.45 for Q1, $1.70-$1.80 for fiscal 2001 and $2.07-$2.17 fiscal 2002 cash EPS.

Neiman Marcus Group (NMGA)posted 4.7% March same store sales decline, and a 3.6% total sales decline. Consequently, Neiman sees $0.80-$0.85 Q3 EPS, and flat fiscal 2001 (July) EPS vs. the previous year.

Footstar (FTS) posted 7.3% March same store sales decline, and an 11% total sales rise. Footstar sees a $0.15-$0.20 Q1 loss, citing the impact of poor weather on its Meldisco division and a key product recall at Footaction.

Briggs & Stratt (BGG) sees $1.33-$1.38 Q3 EPS on 8%-10% revenue decline, citing unfavorable weather and delaying engine orders.

Phoenix Technology (PTEC) says lower than expected Q2 revenue will result in a loss of about $0.17-$0.19.

Akamai Technology (AKAM) sees $39-$41M Q1 revenue and $175M-$190M 2001 revenue vs. the previous guidance of $45M in Q1 and $240M-$250M in 2001. Akamai will reduce its overall workforce by 14%. Robertson Stephens downgraded to long-term attractive. First Union and Merrill also downgrade.

Aspen Technology (AZPN) sees a $0.10-$0.12 Q3 loss (pro forma) on revenue of $75M-$77M, saying global economic uncertainties caused new and existing customers to defer previously committed software investments in the last few days of the quarter. First Union and SG Cowen downgraded to buy from strong buy.


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