Markets & Finance

Qualcomm Hangs Up on Spin-Off Plans


Qualcomm (QCOM) says it no longer plans to spin off its integrated circuits and system software business. Qualcomm also announced the resignation of president and COO Richard Sulpizio. S&P maintains hold.

Openwave Systems ( OPWV) posted $0.11 Q4 EPS vs. a $0.03 loss (pro forma) on a sharp revenue rise and reaffirmed profitability outlook for 2001. CS First Boston reiterates strong buy, Lehman downgraded. S&P maintains hold.

Titan Pharmaceutical (TTP) and Novartis (NVS) announced a one-year delay in approval of Zomaril. DB Alex Brown downgraded Titan to buy from strong buy.

Lucent Technologies (LU) posted a $0.35 Q3 loss (pro forma) vs. $0.23 EPS on a slight revenue decline and eliminated its dividend. Lucent plans to reduce its workforce by additional 15,000-20,000 and sees a $7B-$9B Q4 charge. S&P keeps hold.

Amazon.com (AMZN) posted a $0.16 Q2 loss vs. a $0.33 loss (pro forma) on a 16% revenue rise and sees Q3 sales of $625M-$675M. S&P maintains hold. JP Morgan downgraded. CSFB cut estimates. Prudential reiterates sell. S&P maintains hold.

Morgan Stanley upgraded Brocade Communication (BRCD) to outperform from neutral.

RF Micro Devices (RFMD) anticipates Q2 revenues will increase about 10% sequentially, and continues to expect to return to profitability in the second half of 2001.

BMC Software BMC posted $0.07 Q1 EPS from operations. BMC reportedly lowered revenue guidance. ABN Amro downgraded to hold from add. S&P maintains hold.

Acxiom Corp. (ACXM) posted a $0.07 Q1 loss from operations vs.

$0.24 EPS on 14% revenue decline, and sees $0.07-$0.10 Q2

EPS on $215M-$225M. JP Morgan upgraded to buy from long term buy.

Radio Shack (RSH) posted $0.25 vs. $0.38 Q2 EPS (adjusted) despite slightly higher sales, and says its previous $1.65 2001 guidance could be at risk.

Dain Rauscher downgraded Anadigics (ANAD) to neutral from buy. Prudential cut estimates. On Monday the company posted a $0.48 Q2 loss from operations on sharply lower revenues and forecasted a $0.55 Q3 loss.

Instinet (INET) posted $0.18 vs. $0.18 Q2 EPS on

14% sales rise and will reduce its underlying operating cost

structure by $70M annually vs. the first half of 2001 and cut staff by about 240.

Omnicom Group (OMC) posted $0.81 vs. $0.70 Q2 EPS on 15% higher worldwide revenue.

Flowserve (FLS) posted $0.35 vs. $0.33 Q2 EPS from operations on 55% higher sales, and lowered the 2001 EPS guidance by as much as $0.25; $0.35-$0.40 for Q3 and $1.45-$1.65 2001 EPS.

Waters Corp. (WAT) posted $0.29 vs. $0.28 Q2 EPS on a 5% sales rise and anticipates steady improvement in sales growth rates, with profitability going forward. S&P maintains hold.

Checkpoint Systems (~) posted lower than expected $0.19 vs. $0.14 Q2 EPS from operations on slight revenue rise (excluding foreign exchange) and sees $0.17-$0.22 Q3 EPS, and $0.82-$0.92 2001 EPS.

Flir Systems (FLIR) posted $0.36 Q2 EPS vs. a $0.45 loss as widened gross margin and operating margins offset flat revenue. Flir raised the 2001 EPS guidance to at least $1.20-$1.30.

Merrill downgraded Jacobs Engineering Group (JEC) to near-term accumulate from buy.

Last week the comapny posted $0.82 vs. $0.72 Q3 EPS on a 21% revenue rise.

ABB Ltd. (ABB) posted $0.29 vs. $0.46 first half EPS

from continuing operations on flat revenue. ABB will cut 12,000 jobs, and expects 2001 income from continuing operations to be below a year ago's results.

Computer Associates (CA) posted $0.55 vs. $0.33 Q1 EPS (pro forma) on an 8.8% revenue rise. S&P and CS First Boston raised estimates.

Texas Instrument (TXN) posted $0.03 vs. $0.30 Q2 EPS (pro forma) on 30% lower revenues and sees 10%-15% Q3 sequential revenue

decline. S&P, CS First Boston, and Banc of America cut estimates.

Dynegy (DYN) posted $0.43 vs. $0.29 Q2 EPS on a 89% revenue rise.

Cirrus Logic (CRUS) posted $0.10 vs. $0.15 Q1 EPS despite a 5.2% revenue rise and sees Q2 revenues of $75M-$85M, and a $0.15-$0.20 loss. S&P cuts estimates. Pacific Growth downgraded, while S&P cuts estimates.

Molex Inc. (MOLX) posted $0.21 vs. $0.33 Q4 EPS from operations on a 17% revenue decline and says its backlog at quarter-end was 34% lower than the same period last year. Molex sees $0.13-$0.15 Q1 EPS, and $0.90-$1.00 fiscal 2002. S&P maintains hold.

Cognex (CGNX) posted $0.05 vs. $0.38 Q2 EPS on a 40% sales rise. Cognex sees a 10% Q3 sequential sales decline. S&P reiterates sell.

Altera (ALTR) posted $0.09 vs. $0.25 Q2 EPS (pro forma) on 37% lower revenues. Robertson Stephens says the company said its goal to reduce OEM inventories by $50M per quarter in Q3 and Q4 is no longer achievable. S&P maintains hold.

Tupperware (TUP) posted $0.50 vs. $0.50 Q2 EPS from operations, excluding a foreign exchange impact.

Tupperware targets Q3 low double-digit percentage increase in

sales, and mid-20% increase in net income, excluding foreign exchange costs.

Technitrol (TNL) posted a $0.04 Q2 loss vs. $0.76 EPS on a 31% revenue decline. S&P cut estimates.

Nextel Communications (NXTL) posted 55% Q2 EBITDA from operations growth, and a narrower than expected $0.47 Q2 loss from operations vs. a $0.38 loss as higher costs offset a 38% revenue rise.

Wachovia puts model under review, Davenport reiterates buy. S&P maintains hold.

Honeywell (HON) posted $0.55 vs. $0.75 Q2 EPS from continuing operations on a 4% sales decline and sees $2.15-$2.30 2001 EPS from continuing operations on $24B-$24.5B revenues.

Kemet Corp. (KEM) posted $0.15 vs. $0.90 Q1 EPS on a 54% sales decline, and sees a Q2 sequential revenue decline of about 10%-15%.

Kronos Inc. (KRON) posted $0.37 vs. $0.26 Q3 EPS (pro forma) on 10% revenue rise. While Kronos expects Q4 revenues to exceed this quarter and a year ago's results, the uncertainty of economy makes it difficult to forecast by how much. H&R Block upgraded to buy from accumulate. JP Morgan upgraded to long term buy.

ONI Systems (ONIS) posted a $0.05 Q2 loss vs. a $0.18 loss on a sharp revenue rise and raised its revenue estimates to $75M-$80M in Q3 , and $275M-$285M in 2001.

Lear Corp. ( LEA) posted $0.74 vs. $1.33 Q2 EPS from operations on 4% lower sales and sees $0.50-$0.60 Q3 operating EPS, as well as $2.97-$3.27 2001 operating EPS.

Thomas & Betts (TNB) posted a $0.09 Q2 loss from opearations vs. a $1.94 loss despite a 4.5% sales drop and will discontinue its dividend.

Spinnaker (SKE) posted $0.77 vs. $0.24 Q2 EPS on a sharp revenue rise.

Quest Diagnostic (DGX) posted $0.52 vs. $0.33 Q2 EPS from operations on a 8% revenue rise.

Gillette (G) announced partnerships associated with KKR to sell about 41M shares of the 51.3M Gillette shares they own. KKR says the pending sale is dictated solely by the winding down of the investment fund, not a lack of confidence in Gillette.

Cell Genesys CEGE posted a $0.14 Q2 loss vs. a $0.01 loss on 20% lower revenues and higher R&D costs.

Tucker Anthony (TA) posted $0.31 vs. $0.53 Q2 cash EPS on 12% lower net revenues.

Beazer Homes (BZH) posted $2.15 vs. $1.26 Q3 EPS from operations on a 15% revenue rise and raised guidance for fiscal 2001 EPS to $7.75-$8.00. Beazer targets achieving its5-year goal two years early, with EPS of $9.00 in fiscal 2002

Pulte Homes ( PHM) posted $1.40 vs. $1.15 Q2 EPS from continuing operations on a 4.1% revenue rise.

Stolt Offshore (SOSA) won a contract from Shell Petroleum Development Co. Nigeria for offshore pipelay. The contract was awarded to a consortium of companies and is valued at $135M to Stolt.


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