Markets & Finance

Court Overturns Microsoft Break-Up Ruling


The U.S. Appeals Court reversed, in part, the proposed break-up of Microsoft (MSFT) and removed Judge T.P. Jackson from the case. JP Morgan upgraded to buy from long-term buy.

Cisco (CSCO), Alcoa (AA), Bed Bath & Beyond (BBBY), Comcast 'A' (CMCSK),

Concord EFS (CEFT), Harley-Davidson (HDI), Liberty Media Group (LMG.A), Mirant Corp. (MIR), Waste Management (WMI) and Washington Mutual (WM) are among the companies named by Lehman for its "10 Uncommon Values" portfolio, ideas they believe will outperform the broader market over the next 12 months.

Healthsouth (HRC) reiterates Q2 EPS guidance of $0.20, and expects EPS growth of about 15% over coming three to five years. S&P maintains buy.

Robertson Stephens remains cautious about I-Many Inc. ( IMNY) at the end of the quarter.

Frost Securities downgraded Nabors Industries (NBR), Weatherford International (WFT) and Noble Drilling (NE) to buy from strong buy. Frost also downgraded (GLM) to market perform from strong buy.

Digimarc Corp. (DMRC) says the validity of the majority of the company's patent claims were confirmed again by the U.S. Patent Office.

Estee Lauder (EL) reaffirmed expectations for fiscal 2001 EPS of between $1.33-$1.35 from operations and 9% sales growth. Based on current conditions, Estee Lauder estimates $1.50-$1.53 fiscal 2002

EPS on 7%-9% higher sales.

CIBC World initiated coverage on ONI Systems (ONIS) and Ciena (CIEN) with buy; and Sycamore Networks (SCMR) with hold.

UBS Warburg upgraded GT Group Telecom (GTTLB) to strong buy from buy.

Source Capital (SOCC) agreed to be acquired by Sterling Financial Corp. (ticker symbol="SLFI" channel="pi"/>) in a stock deal valuing each Source share at $7.50.

Borel Bank & Trust (BLCA) agreed to be acquired by Boston Private Financial Holdings (BPFH) in a deal valued at about $113.2M. Terms: $37.50 in stock per Borel share.

FedEx Corp. (FDX) posted $0.64 vs. $0.85 Q4 EPS from operations despite a 6% revenue rise. Fedex says Q4 volume trends are continuing, and the company expects Q1 EPS to be considerably below last year's results -- around the low end of the current range of analysts' estimates.

Nike Inc. (NKE) posted $0.60 vs. $0.46 Q4 EPS on a 9% revenue rise and says due to continued gross margin pressure associated with foreign exchange and managing excess inventory, the footwear company expects Q1 EPS will be below the prior year's results.

Frontier Airline (FRNT) expects Q1 EPS to fall within the range of $0.24-$0.30 vs. $0.57 a year ago, citing anticipated expenses associated with a hailstorm experienced last week at

Denver International Airport.

Proxim Inc. (PROX) sees $0.03-$0.07 Q2 EPS from operations on $23M-$26M revenue, citing weakness in the broadband wireless networking market.

CS First Boston remains confident in Oracle's (ORCL) Q1 EPS estimates, and believes the company's second half fiscal 2001 estimates could have a $0.05-$0.10 upside. CS First Boston reiterates strong buy and the $24 target.

Scientists from Lucent Technologies' (LU) Bell Labs have calculated the maximum amount of information that can be transmitted over

optical fiber.

Audiovox (VOXX) posted a $0.38 Q2 loss vs. $0.30 EPS on 28% lower sales. The company continues to expect sales and profits to improve over Q3 and Q4 compared to the first half.

NU Horizons Electronics (NUHC) posted $0.06 vs. $0.40 Q1 EPS on 31% lower sales, citing continued industry-wide softness in demand.

Rite Aid Corp. (RAD) completed its $3B refinancing, resulting in substantially reduced debt and the retirement of a majority of its debt due in 2002. The company now has no significant debt maturing before 2005.

Corn Products (CPO) hired First Analysis Securities to help in exploring options to enhance the value of its Enzyme Bio-Systems unit.

Vishay Intertechnology (VSH) agreed to acquire Infineon Technology's (IFX) entire infrared components business, subject to certain approvals, for about $120M.

Impax Labs IPXL and a Teva Pharmaceutical unit entered an agreement for twelve controlled release generic pharmaceutical products.

Macromedia (MACR) sees a $0.15-$0.20 Q1 loss (pro forma) on $85M-$90M revenue. Robertson Stephens cut its estimates and price target. S&P downgraded the shares to to sell.

Redback Network (RBAK) sees a $0.27-$0.32 Q2 loss from operations on revenue of about $55M-$60M. Redback expects to take charge for excess, obsolete inventory and for purchase commitments for Q2. Robertson Stephens downgraded.

Altera Corp. (ALTR) reaffirmed prior revenue guidance for a Q2 sequential decline of about 25% and says while it continues to see signs of stability in North America, international business is still soft. S&P maintains hold.

Honeywell ( HON) offered to sell its stake in General Electric's (GE) aircraft financing unit to noncompetitors in exchange for fewer divestitures of Honeywell's avionics businesses, in a bid to appease EU regulators, according to press reports.

Nokia's (NOK) unit, Nokia Networks, will cut workforce globally by 900-1000.

Radisys Corp. (RSYS) sees a $0.08-$0.10 Q2 loss (pro forma). The company set a restructuring plan, including job cuts, salary reductions, and a plant shutdown.

Cabletron Systems (CS) posted $0.08 Q1 EPS (pro forma) on a 43% revenue rise. S&P maintains hold.

Coldwater Creek (CWTR) posted better than expected $0.13 vs. $0.34 Q1 EPS despite a 17% sales rise.

Herman Miller (MLHR) posted $0.43 vs. $0.50 Q4 EPS from operations on 5.5% sales decline. The company sees $0.20-$0.25 Q1 EPS from operations on sales of $455M-$485M.

Terex Corp. (TEX) sees $0.50-$0.55 Q2 EPS from continuing operations, and expects second half results to be similar to those of the first half. Terex agreed to acquire CMI Corp (CMI).

International Multifoods (IMC) posted $0.11 vs. $0.25 Q1 EPS as higher operating costs and a charge offset a 9% sales rise. The company remains comfortable with $1.45-$1.50 fiscal 2002 EPS guidance (including $0.20 from an acquisition) and sees Q2 below a year ago's results.

ConAgra Foods ( CAG) posted $0.23 Q4 EPS vs. a $0.09 loss on a 4.7% sales rise, and sees year-over-year percentage gains in the second half of fiscal 2002 rather than in the first half.

Urocor Inc. (UCOR) agreed to be acquired by Dianon Systems Inc. (DIAN) in a deal

valued at $180M. Terms: each Urocor share will be

converted into the right to receive 0.4064 shares of Dianon stock up to maximum of $18 per share of Urocor.

FDA finds Visible Genetics's (VGIN) Trugene HIV-1 Genotyping Test and OpenGene system products meet its requirements for clearance.

Casella Waste (CWST) posted a $0.07 Q4 loss (pro forma) vs. $0.10 EPS (restated) on a 17% revenue drop due to severe winter weather. Casella will take $112M in charges in Q4. The company sees $426M-$441M fiscal 2002 revenue, and $92M-$96M EBITDA.


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