Markets & Finance

ImClone Falls Further on SEC, Justice Dept. Inquiries


ImClone (IMCL) says it has received informal inquiries from SEC, Justice Dept, according to a SEC document filed today. ImClone has been sued by investors who claim it made false and misleading statements about the prospects for Erbitux, an experimental treatment for colon cancer. Lehman thinks there could be further bad news.

Shares of Minnesota Mining & Manufacturing (MMM), Dow Chemical (DOW), and Halliburton (HAL) are higher on the speculation the Bush administration would like to limit liability to asbestos lawsuits.

Dollar Tree (DLTR) posted $0.67 vs. $0.57 Q4 EPS on 1.5% higher comp-store sales and 19% higher total sales and says Q1 and Q2 will be affected by the shift of Easter to Q1. S&P maintains hold.

Moody's reportedly raised Amazon.com (AMZN) senior debt rating to B3.

Graham Corp. (GHM) posted $0.21 Q3 EPS vs. a $0.18 loss, saying it received notice from a customer earlier this month to stop work on eight orders for large rectangular condensers that were booked in 2001.

SonicWall (SNWL) posted $0.09 vs. $0.07 Q4 EPS (pro forma) on 56% revenue rise. Pacific Growth raises target and reiterates buy.

BMC Software (BMC) posted $0.08 vs. $0.09 Q3 EPS from operations on 18% lower revenue (excluding a $2.6M revenue benefit).

Sanmina (SANM) posted $0.03 vs. $0.34 Q1 cash EPS on 41% revenue decline and cut near-term guidance. CS First Boston assumes coverage and downgrades. Morgan Stanley, S&P cut estimates.

Renaissance ( RNR) posted $2.07 vs. $1.79 Q4 operating EPS and is comfortable with increases of Street estimates to $10.50-$11.00 for 2002 operating EPS.

Moody's reportedly placed American Tower's (AMT) rating on review for a possible downgrade. Earlier the company said it has chosen to cancel its undrawn $250M term loan C facility; reducing maximum borrowing capacity.

JP Morgan upgraded Alliant Technology (ATK) to buy from market perform. On Thursday the company posted $0.94 Q3 EPS from continuing operations.

OpenTV (OPTV) posted a $0.04 Q4 loss vs. a $0.04 loss (pro forma) as higher operting expenses offset 13% revenue rise. Thomas Weisel downgraded to attractive from buy.

BEI Technologies (BEIQ) posed $0.02 vs. $0.23 Q1 EPS on 24% lower sales, and says softness in its markets will affect results at least through next quarter.

JDS Uniphase (JDSU) posted a $0.02 second quarter loss vs. $0.21 EPS on 69% sales decline. JDS sees a $0.01-$0.02 third quarter loss on 10%-15% sequential revenue decline. S&P maintains avoid.

Lockheed Martin (LMT) posted $0.55 vs. $0.44 fourth quarter EPS (continuing operations, excluding non-recurring items) despite flat sales. The company sees $2.45-$2.50 2002 EPS on 5%-7% higher sales.

Qualcomm (QCOM) posted $0.23 vs. $0.23 first quarter EPS on 5.8% revenue rise and sees $0.19-$0.21 Q2 EPS (pro forma). CIBC World downgrades to hold from strong buy. WR Hambrecht, Morgan Stanley cut estimates.

Sanmina (SANM) posted $0.03 vs. $0.34 first quarter cash EPS on 41% revenue decline. Cuts near-term guidance. CS First Boston assumes coverage, downgrades. Morgan Stanley, S&P cut estimates.

Ikon Office Solutions (IKN) posted $0.22 vs. $0.11 first quarter EPS from continuing operations on 8.2% sales rise. Sees $0.20-$0.23 second quarter EPS, $0.84-$0.89 fiscal 2002.

Gateway (GTW) posted $0.02 fourth quarter EPS vs. $0.40 loss on 54% lower sales. Gateway plans to lay off 2,250, and close company sites in four states. S&P keeps hold. Morgan Stanley downgrades to neutral from outperform.

PMC Sierra (PMCS) posted a $0.15 fourth quarter loss vs. $0.34 EPS (pro forma) on 80% revenue decline. Goldman adds to recommended list.

PeopleSoft (PSFT) posted $0.18 vs. $0.14 fourth quarter EPS on 6% revenue rise. S&P says revenue is slightly below estimates, and maintains hold.

McData Corp. (MCDT) posted $0.03 vs. $0.12 fourth quarter EPS (pro forma) depsite 19% revenue rise and sees breakeven to $0.02 first quarter EPS.

Mentor Graphics (MENT) posted $0.48 vs. $0.35 fourth quarter EPS from operations as lower operting costs, higher other income offset 9% revenue decline. S&P raises estimates.

RSA Security (RSAS) posted $0.01 vs. $0.18 fourth quarter EPS (from core operating business) on 19% revenue decline. RSA sees $0.01-$0.03 first quarter EPS on $63-$65 million revenue. S&P downgrades to avoid from hold.

Verisign ( VRSN ) posted $0.20 vs. $0.13 fourth quarter EPS on 44% revenue rise. S&P keeps hold.

The FDA rejected American Home Products' (AHP) application for new indication of

Rapamune, its immunosuppressant agent for the prevention

of organ rejection following renal transplantation.

Russell Corp. (RML) plans to increase bad debt reserve due to Kmart's Chapter 11 filing; notes $12 million in accounts receiveable with Kmart. Russell still sees $1.40-$1.60 2002 EPS.

T Rowe Price (TROW) posted $0.35 vs. $0.43 fourth quarter EPS on 17% revenue

drop and sees first half 2002 investment income lower than first half of 2001.

Ericsson (ERICY) posted SEK 0.44 fourth quarter loss vs. SEK 0.28 EPS on 15% sales drop. Maintains target of over 5% operating margin for 2002.

Taiwan Semiconductor (TSM) posted $0.037 fourth quarter earnings per ADR vs. $0.202 on 38% sales drop and sees first quarter 2002 revenues growing by mid-to-high single-digit range from fourth quarter 2001.

Digital River (DRIV) will acquire all assets, customer contracts of eStores, and Government Systems Group units of Beyond.com for $3.5 million cash, $7.5 million in Digital River stock.


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