Markets & Finance

Cabot Paints a Gloomy Pricing Picture


Cabot (CBT) was down after the chemical company posted $0.38 vs. $0.31 4Q EPS from continuing operations despite a slight revenue decline. The company says it's likely to experience continued pricing pressure in fiscal year 2002, and does not have good visibility regarding demand.

Brocade Communications Systems, Inc. (BRCD) was lower after AG Edwards downgraded shares of the maker of storage area networking infrastructure solutions, along with other peers including QLogic and Emulex to buy from strong buy. Meantime, Morgan Stanley cut Brocade and Juniper Networks (JNPR) to nuetral on valuation.

SatCon Technology (SATC) was trading up slightly after the U.S. Patent & Trademark Office granted a patent to the company to cover the optical signal processing component of the company's biological and chemical detection system.

Dow Chemical (DOW)posted $0.16 vs. $0.40 third quarter earnings per share on a 9.7% sales drop. The chemicals giant cites weaker-than-expected demand and substantial price declines. It sees $0.10-$0.20 fourth quarter EPS.

Starwood Hotels (HOT) posted $0.14 vs. $0.50 third quarter EPS on a 12% revenue drop. The lodging company sees fourth quarter worldwide same-store revenue per available room down 25%-30% from fourth quarter 2000, $200M-225M EBITDA, a large fixed non-cash charge for depreciation, and a small operating loss.

Foundry Networks (FDRY) posted $0.02 vs. $0.23 third quarter EPS (pro forma) on a 34% revenue decline. The networking products company set a $15M stock buyback.

Comverse Technologies (CMVT) sees lower than expected $0.11 third quarter EPS from operations on sales of about $295M. S&P maintains hold.

Salomon SB downgrades Oracle (ORCL) to neutral from outperform.

Harmonic Inc. (HLIT) posted a $0.20 third quarter loss per share vs. a $0.10 loss from operations on a 16% sales decline. S&P says management sees flat sales growth for the next couple of quarters, and maintains its avoid rating.

Affymetrix Inc. (AFFX) posted a $0.03 third quarter loss per share (pro forma) vs. breakeven despite a 4.2% product revenue rise and flat total revenue. The company settled all patent litigation with HYSEQ INC.

AXT Inc. (AXTI) posted a $0.06 third quarter loss per share vs. $0.17 EPS from continuing operations on a 25% revenue decline. The company sees $13M-$15M fourth quarter revenue, and a $0.14- $0.18 loss per share. S&P maintains hold.

Mylan Labs (MYL) posted $0.50 vs. $0.27 second quarter EPS on a 38% revenue rise.

ITT Industries (ITT) posted $0.75 vs. $0.72 third quarter EPS as lower costs offset a 5% revenue decline. The company sees EPS of $0.82-$0.88 for the fourth quarter and $3.06-$3.13 for all of 2001. ITT will wait until later in the year before providing 2002 guidance.

Biosource International (BIOI) posted $0.02 third quarter EPS vs. a $0.35 loss per share on a 5.4% sales rise (excluding foreign exchange effects). Biosource set a $5 million stock buyback.

Tasty Baking (TBC) posted $0.13 vs. $0.18 third quarter EPS as higher costs offset slightly higher sales.

Tellium Inc (TELM) posted a $0.05 third quarter cash loss per share (pro forma) vs. a $0.09 second quarter cash loss on a 32% sequential revenue rise. The company is affirming its revenue guidance of $130M-$135M for 2001 and $288M for 2002.

Microchip Tech (MCHP) posted $0.17 vs. $0.34 second quarter EPS on a 27% sales decline. Microchip sees $0.16-$0.17 third quarter EPS on revenue about flat with the second quarter. S&P maintains accumulate.

Robertson Stephens downgrades Network Associates (NETA) to market perform from buy.

Conseco Inc (CNC) says third quarter operating EPS will be about $0.18, 50% higher than one year ago. It says it has excellent, predictable cash flow, and multiple sources of additional cash if necessary. Conseco expects to meet its 2002 debt obligations.

Chiron Corp (CHIR) posted $0.30 vs. $0.23 third quarter EPS from continuing operations on a 37% revenue rise. The company expects 2001 EPS to come in at the high end of the $0.90-$0.95 range.

QLT Inc. (QLTI) posted $0.11 vs. $0.04 third quarter EPS on $57.5M in sales of its Visudyne product. S&P maintains accumulate.

Swift Transport (SWFT) will delay release of third quarter results until Nov. 1 to allow it to continue evaluating issues arising from potential impairment of its investment in 50%-owned Transportes EASO.


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