Markets & Finance

Cisco Sets Major Changes in Business Structure


After the close of trading Thursday, Cisco Sytems (CSCO) said it will break down its business into 11 units. Cisco eliminated a telecom unit as well as some other divisions.

Krispy Kreme (KKD) posted $0.10 vs. $0.06 Q2 EPS on 34% higher total system sales. The doughnut chain raised fiscal 2002 EPS guidance to $0.42 per share, and expects fiscal 2003 EPS to increase by 40% to $0.59 per share. S&P maintains sell on Krispy Kreme.

Standard & Poor's cut Gateway's's (GTW) credit rating to junk status.

ABN Amro reportedly upgraded Comverse Technology (CMVT) to add from hold.

Barnes & Noble (BKS) posted breakeven Q2 (pro forma) vs.

an $0.11 loss on a 6% sales rise and plans to file an IPO for GameStop.

Herman Miller (MLHR) First Union downgraded to market perform from buy.

Wet Seal (WTSLA) posted $0.18 vs. $0.02 Q2 EPS on

3.4% higher same store sales, and 5.8% higher total

sales. Wet Seal believes it can achieve low single-digit

comp store sales in Q3 and Q4.

Matria Health (MATR) expects 2001 revenues to exceed $260M, up from an earlier forecast, and EBITDA to exceed $42M. Matria says 2001 EPS expectations remain in the $0.95-$1.00 range.

Great Southern Bancorp reportedly offered to acquire Guaranty Federal (GFED) for $16 per share.

Toll Brothers (TOL) posted $1.54 vs. $1.00 Q3 EPS on a 26% revenue rise, citing pricing power, solid demand, stable material costs and industry-wide lot shortages.

Limited (LTD) posted $0.08 vs. $0.17 Q2 EPS on 5% lower same store sales. Given continuing negative comparable store sales trends, Limited expects about breakeven level of profitability in Q3, with EPS to be down significantly for fiscal 2002.

Synopsys (SNPS) posted $0.28 vs. $0.65 Q3 earnings before goodwill on

a 23% revenue decline, and posted $0.22 vs. $0.59 Q3 GAAP

EPS. Synopsys sees $1.05-$1.10 fiscal 2001 EBG, and $2.10-$2.40 for fiscal 2002. Robertson Stephens cut the target and reiterates buy.

Intimate Brands (IBI) posted $0.14 vs. $0.20 Q2 EPS on 5% lower same store sales. Given continuing negative comparable store sales trends, Intimate Brands expects about breakeven level of profitability in Q3 , with EPS to be down significantly for fiscal 2002.

Hot Topic (HOTT) posted $0.19 vs. $0.15 Q2 EPS on a 2.4% same store sales rise, and a 39% total sales rise.

Claire Stores (CLE) posted a $0.12 Q2 loss vs. $0.34 EPS on 3% lower sales. The fashion accessories chain remains cautious as mall traffic remains an issue in a difficult retail environment; Claire's is not comfortable giving any guidance for Q3 at this time.

Cyberonics (CYBX) posted a $0.31 Q1 loss vs. a $0.06 loss as higher costs

offset a 8% sales rise. The company narrowed its $42M fiscal 2002 loss estimates to a $40M loss.

Metro One Telecommunications (MTON) says it has not lowered financial guidance or

outlook for continued strong business for Q3 or fiscal 2001.

Patterson Dental (PDCO) posted $0.29 vs. $0.24 Q1 EPS on a 12% sales rise, and sees $0.32-$0.34 Q2 EPS, and reaffirmed the $1.36 fiscal 2002 consensus estimate.

Pharmacyclics (PCYC) posted a $0.51 Q4 loss vs. a $0.46 loss as higher R&D costs offset a sharp revenue rise.

Equant N.V. (ENT) will cut 20% of its total global workforce; and take a $40M-$50M charge.

Lehman upgraded Cytec Industries (CYT) to strong buy from buy.

Journal Register (JRC) says July pro forma advertising revenues were $25.2M

vs. a year ago's $25.8M.

Airtran Holdings (AAI) Sees $0.02-$0.06 Q3 EPS from operations and expects its load factors will decline three to five points and that yields will decline slightly.

Guidant Corp. (GDT) announced the launch of its Ventak Mini IV implantable

cardioverter defibrillator system in Japan.

Ciena Corp. (CIEN) will be added to the S&P 500 after close of trading on a date to be announced, replacing American General, which is being acquired.


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