) disclosed that the SEC is conducting an investigation into the company's August 2001 secondary offering, and its second quarter fiscal 2001 financial results.
Electronic Data Services (EDS
) reported an accounting complexity related to its big outsourcing deals, according to The Wall Street Journal. Also, the company ended talks with Proctor & Gamble related to a potential outsourcing pact. S&P keeps its accumulate ranking.
) is higher. The company expects second quarter EPS from operations to be at least $1.33, above the current consensus of $1.25. 3M cited improved sales volumes, primarily in the Asia Pacific area.
) shares fell after the company said it sees a $0.20-$0.25 second quarter loss (basic) on revenue of $10.5M-$11M. S&P downgraded to hold from buy. Tripos noted lower revenue in Discovery Software licensing, Software Consulting Services, and higher costs.
) shares fell sharply after Johnson & Johnson (JNJ
) received a non-approvable letter from the FDA related to its New Drug Application for Risperdal Consta, a schizophrenia drug. Alkermes was to manufacture the drug using its Medisorb drug-delivery technology. USB Piper downgraded.
Dianon Systems (DIAN
) says if the Department of Health & Human Services' proposed revisions to Medicare payment policies are adopted in their current form, the company expects a negative impact on 2003 EPS of about 10%. Wachovia says Dianon's 2003 EPS could fall by $0.40.
) stock resumed trading after being halted on June 26 following the news of its discovery of $3.85 billion in transfers from line cost expenses to capital accts that violated GAAP.
Janney Montgomery upgraded Harbor Florida Bancshares (HARB
) to buy from hold on valuation.
) expects to widen its $813M 2002 loss estimate for Massachusetts projects by 400M-$450M due to declining productivity. Raytheon reaffirmed $2.10-$2.20 2002 EPS from operations guidance.
) sees a $0.24-$0.30 second quarter loss (pro forma) on $14.5M-$16.5M revenue, citing constrained IT spending.
JP Morgan downgraded Xilinx (XLNX
) and Altera (ALTR
) to market perform from long term buy.
Catapult Communication (CATT
) sees lower than expected $0.10 third quarter EPS on $8M revenue. CIBC downgraded to hold from strong buy.
Pacific Growth also downgraded.
Merrill reportedly upgraded Comverse Technology (CMVT
) to long term buy from neutral and keeps near term neutral.
) announced that the Office of Naval Research has awarded Creee with two contracts for a total value of about $14.4 million.
McGrath Rentcorp (MGRC
) says it has exercised its right to terminate a merger agreement between it and Tyco International (TYC
) agreed to be acquired by Northrop Grumman (NOC
) in a stock deal valued at about $7.8 billion, or $60 per TRW share.
Vivendi Universal (V
) chairman and CEO Jean-Marie Messier agreed to resign from the beleagured company.
) says on June 30, it delivered to Cytyc (CYTC
) a formal notice of its termination of the companies' Merger Agreement. Last week, the FTC informed the two companies of its intention to block the acquisition.
Idec Pharmaceutical (IDPH
) says the European launch of zevalin by its partner Schering AG will be delayed due to certain technical compliance issues at its fill/finish provider.
) shares are trading sharply higher in Europe on rumors that the company is a takeover target. In response to the rumors, Ericsson's chairman says the company "has no negotiations regarding a takeover or other similar alliances, although no one can rule out such future scenarios."
GSI Commerce (GSIC
) sees a worse than expected second quarter EBITDA loss of $3M-$4M on revenue of $32M-$34M; and sees a third quarter EBITDA loss of $5M-$6M. GSI noted higher costs, and the decision to remove estimated results of potential new partners from projections.
France Telecom (FTE
) is sharply higher on rumors that the French government would be willing to renationalize the company. The government reportedly denied the rumors.