Markets & Finance

Gateway Posts Loss, Sets Layoffs


Gateway (GTW) posted a Q1 $1.56 loss (including charges) vs. EPS of $0.36 on a 15% sales decline. The PC maker took a charge to cut jobs and close retail stores, including $533 million to alleviate a consumer-spending slowdown, and expects to break even (excluding charges) for the rest of the first half of 2001. S&P maintains avoid.

Goldman upgraded Applied Micro Circuit (AMCC), PMC-Sierra (PMCS) and Vitesse Semiconductor (VTSS) to trading buy from market outperform..

Ariba Software (ARBA) posted a $0.20 Q2 loss from operations vs. a $0.06 loss despite sharply higher revenues. Salomon upgraded to buy from outperform.

Business Objects (BOBJ) posted $0.16 vs. $0.11 Q1 EPS on a 35% revenue rise and sees $0.16-$0.17 Q2 EPS on revenues of $100M-$102M. The firm also sees $0.71-$0.75 2001 EPS. CIBC World cut the estimates and target. Merrill downgraded.

Transmeta Corp. (TMTA) posted a $0.10 Q1 loss (pro forma) vs. $0.56 loss on $18.6M in revenue (vs. zero for year ago). Transmeta expects Q2 revenue to be similar to slightly up from Q1. Salomon SB downgraded and cuts estimates.

McData Corp. (MCDT) posted $0.08 vs. $0.05 Q1 EPS (pro forma) on a 76% revenue rise and cut the Q2 revenue growth to 40%-45%, and the 2001 outlook to 50%-60%. S&P maintains avoid and Wit SoundView downgraded.

Brocade Communcications (BRCD) sees $0.05-$0.06 Q2 EPS on 30% lower sequential revenue. Salomon SB upgraded to buy from outperform.

WR Hambrecht and Salomon SB upgraded JDS Uniphase (JDSU).

Emulex (EMLX) posted $0.13 vs. $0.10 Q3 EPS on 65% revenue rise. Emulex expects relatively flat Q4 sequentuial revenue. Salomon SB upgraded and Dain Rauscher started coverage with buy. S&P maintains accumulate.

Network Associates (NETA) posted a $0.17 loss from ops vs. $0.20 EPS on 21% revenue decline. The firm sees a Q2 loss (pro forma) of $0.03-$0.06 on $170M-$180M revenue. S&P maintains hold. Tucker Anthony upgraded.

Microsoft (MSFT) posted Q3 EPS of $0.44 vs. $0.43, topping expectations. Revenue rose 14% to $6.46B compared with $5.66B a year earlier, beating the consensus $6.1 billion. Microsoft expects $0.41-$0.42 Q4 EPS on revenues of $6.30B-$6.50B amd sees $1.90-$1.94 fiscal 2002 EPS. Goldman upgraded its rating; S&P maintains hold. CIBC Worl and CS First Boston maintain buy.

eBay (EBAY) posted Q1 $0.11 EPS (pro forma) vs. $0.02 EPS. Revenues rose 79% to $154.1M vs. $85.9M a year ago. S&P maintains accumulate and raisted estimates. WR Hambrecht and CS First Boston raised estimates and reiterate strong buy.

Sun Microsystems posted Q3 EPS (pro forma) of $0.08 vs. $0.14 a year ago, despite a revenue rise. Revenues were $4.10B vs. $4.0B a year ago, missing lowered expectations. Sun cited the technology spending slowdown. S&P maintains hold. Merrill upgrades, but cuts estimates.

Nokia (NOK) posted EUR 0.22 vs. EUR 0.19 Q1 EPS (pro forma) on a 22%

sales rise.

Merck (MRK) posted $0.71 vs. $0.63 Q1 EPS on 28% sales rise. Sees Q2, Q3 and Q4 EPS growth rate below Q1's 13%, and says its comfortable with the $3.15-$3.25 2001 consensus estimate.

Nortel Networks (NT) posted $0.12 Q1 loss vs. $0.12 EPS on a slight revenue decline. S&P maintains hold.

Genentech (DNA) and Actelion Ltd say the second pivotal Phase III clinical trial of Veletri did not meet its primary objective of significantly improving symptoms associated with acute heart failure.

Maxim Pharmaceutical (MAXM) says at 72 weeks, complete viral response was sustained in 40% of evaluable patients in all 4 Ceplene treatment arms combined, and in 44% of patients receiving highest dosing regimen of Ceplene.

Lattice Semicondutor (LSCC) posted $0.24 vs. $0.26 Q1 EPS on 12% lower revenues. For Q2, Lattice anticipates another double-digit sequential revenue decline.

Swift Transport (SWFT) posted $0.02 vs. $0.17 Q1 EPS as higher operating costs offset a 12% revenue rise.

Ericsson (ERICY) posted a SEK 0.29 Q1 loss SEK 0.63 EPS (US GAAP) on a 5.3% drop in sales and notes further weakening of its mobile phones business. Ericsson says Q2 income before taxes will not improve vs. Q1. Goldman downgraded to market perform. S&P maintains hold.

Brocade Communications (BRCD) sees $0.05-$0.06 Q2 EPS on 30% lower sequential revenue. Salomon upgraded. S&P maintains accumulate.

PMC-Sierra (PMCS) posts $0.02 vs. $0.15 Q1 EPS (pro forma) as narrowed gross profits offset a 5% revenue rise. Robertson Stephens upgraded.

Commerce One (CMRC) posted $0.11 Q1 loss vs. $0.09 loss from operations despite a sharp revenue rise. Commerce One also set shareholder rights plan. CIBC World downgraded to hold.

Inktomi (INKT) posted $0.22 Q1 loss vs. $0.01 EPS (pro forma) on a 14% revenue drop.


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