Markets & Finance

International Rectifier Sees Sharp Revenue Drop


International Rectifier (IRF) expects Q4 revenue to be down

about 30%-35% sequentially, and expects Q1 fiscal 2002 to be flat with Q4. S&P and Gruntal downgraded their rating.

Microchip Technology (MCHP) says it is tracking well towards earlier guidance for $138M Q1 sales. S&P and Banc of America upgraded.

CS First Boston downgraded CVS Corp. (CVS) to hold from strong buy.

Northwest Airlines confirmed that it has withdrawn its proposal to acquire the remaining shares of Mesaba Holdings (MAIR) it does not already own.

Bear Stearns and Merrill downgraded Interpublic Group (IPG). S&P maintains hold.

Forward Air (FWRD) sees $0.21-$0.25 Q2 EPS vs. a year ago's $0.28, citing the weak economy, higher insurance costs, and an increased rate of customer failures.

Aremissoft Corp. (AREM) stock has been halted pending news. Prior to the halt, the company said it discontinued plans to invest in LK Globalsoft.com. The $109M it was to invest may be used to "substantially" increase its buyback program.

CS First Boston downgraded Lucent Technology (LU) to hold from buy. On Thursday The Wall Street Journal reported that Lucent's

plan to sell two manufacturing plants has fallen through.

Salomon upgraded Riverstone Network (RSTN) to buy from

outperform.

Andrew Corp. (ANDW) sees $0.12-$0.15 Q3 EPS vs. previous estimate of $0.21-$0.25, and sees $235M-$240M Q3 revenues vs. $260M-$270M. S&P maintains hold.

Quanta (Quanta) (PWR) sees $0.35-$0.38 Q2 EPS, and $1.73-$1.77 2001 EPS, citing greater-than-expected contract

delays, cancellations and reduced margins. S&P keeps buy. First Union downgraded.

USB Piper reportedly initiated coverage of Harvard Bioscience (HBIO) with strong buy.

Nortel Networks (NT) sees a $0.48 Q2 loss from operations on $4.5B revenues and sees

a $19.2B Q2 net loss including charges from discontinuation

of access solutions operations, layoffs, plant closures, and a write down of intangibles. Nortel will discontinue its dividend payout. AG Edwards downgraded and CS Frist Boston cut estimates.

Goodyear Tire (GT) tripled production of radial aircraft tires at its Danville, Va. plant due to increased worldwide demand.

General Semiconductor (SEM) sees about $0.01-$0.03 Q2 EPS on 15%-17% revenue

decline, citing a continued weakness in demand from most

of its end markets.

Tribune Co. (TRB) cut Q2 EPS from operations guidance to $0.22. The company says revenues and newspaper advertising volume for the period ended May 27 were $432M, down 10% from year ago. S&P maintains hold.

Diamondcluster (DTPI) sees $0.02 Q1 EPS from operations on $57M-$60M revenues, citing continued weak demand in North America and Europe.

Circuit City (CC) posted $0.05 vs. $0.28 Q1 EPS on a 13% sales

decline.

Microsoft (MSFT) shares are lower in pre-market trading on rumors Microsoft will report a profit warning. Microsoft reportedly denies any such news forthcoming.

JDS Uniphase (JDSU) sees Q4 sales of about $600M vs. previous guidance of $700M, and sees a $0.06-$0.08 Q4 loss, including inventory write-downs. JDS expects $450M Q1 fiscal 2002 sales. S&P downgraded to avoid. Dain Rauscher and CS First Boston also downgraded.

United Microelectronic (UMC) sees about 35% Q2 sequential revenue decline and an operating loss due to weaker than expected market environment and a slow economic recovery. The company says Q3 visibility remains extremely low.

Adobe Systems (ADBE) posted $0.34 (pro forma) vs. $0.26 Q2 EPS on 15% revenue rise. Adobe expects flat Q3 revenues. UBS Warburg upgraded and CS First Boston cut estimates.

Charles River Labs (CRL) raised Q2 EPS guidance to $0.21-$0.22 on sales that should slightly exceed the high end of the company's earlier guidance of $110M-$114M.

Dendrite (DRTE) expects a $0.05 Q2 loss from operations on flat revenue and sees $0.30-$0.45 2001 EPS from operations on revenue growth of 5%-12%.

Net2phone Inc. (NTOP) posted a $0.41 Q3 loss from continuing operations vs. a $0.21 loss as higher costs offset sharp a revenue rise. The company and Liberty Media announce that Liberty will license Net2Phone's Voice over IP technology for five years.

Pinnacle Systems (PCLE) sees about breakeven Q4 (pro forma) on $60M-$64M sales, which is about 10% less than previoiusly expected.

Rainbow Technology (RNBO) sees a $0.06-$0.09 Q2 loss vs. previous guidance of breakeven, and expects Q2 revenues to be down about 5%.

Quanta (PWR) sees $0.35-$0.38 Q2 EPS on about $500M revenues and sees $1.73- $1.77 2001 EPS on about $2.2B revenues, citing greater than expected contract delays, cancellations and reduced margins.

United Auto Group (UAG) expects to exceed $0.30 Q2 consensus EPS estimate by $0.05, and the $1.07 2001 estimate by $0.09, citing continued revenue and gross profit growth.

Lantronix (LTRX) filed to offer 9 million shares.


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