Markets & Finance

McData Slips


Data storage company McData (MCDTA) posted 8 cents second-quarter earnings per share vs. a 3-cent loss (GAAP) on a 39% revenue rise. McData sees 5 cents to 7 cents third-quarter earnings per share (non-GAAP) on $105 million to $110 million revenue. McData will acquire Nishan Systems and Sanera Systems. Unterberg downgraded to market perform.

China Petroleum (SNP) posted lower second-quarter net income, and reportedly will issue 3.5 billion yuan in bonds to finance the construction of pipelines. The company will cut 30,000-50,000 employees in the next three years.

In an SEC filing, non-wood decking products maker Trex (TWP) says officer Robert A. Wittenberg reduced his stake in the company to 10.3%, or 1.52 million shares. Legg Mason upgraded to buy from hold on valuation and a positive outlook for the company.

Skechers U.S.A. (SKX) signed an international marketing agreement with pop singer Christina Aguilera for its women's footwear lines. The Aguilera marketing campaign will launch in women's, teen, and pop culture magazines in October 2003.

Internet company Rediff.com (REDF) says CFO Rick Filippelli will be leaving the company effective Sept. 5, and will be replaced by the company's current vice president of finance, Joy Basu.

Pegasus Communications' (PGTV) Pegasus Media & Communications unit canceled senior term loan financing that it had announced on July 23.

Goldman downgraded ExpressJet (XJT) and Atlantic Coast Airlines (ACAI) to in-line from outperform; upgraded Alaska Air (ALK) to in-line from underperform; and downgraded America West (AWA) to outperform from in-line.

American Woodmark (AMWD) posted 90 cents vs. $1.09 first-quarter earnings per share as higher costs offset a better than expected 13% sales rise. Due to healthy demand, the company sees $1.00-$1.05 second-quarter earnings per share on 10%-15% sales growth.

Wal-Mart Stores (WMT) reportedly raised its forecast for August sales at its U.S. stores open at least a year to a range of 4%-6% after back-to-school demand proved stronger than initially expected.

General Electric's (GE) NBC unit a sent letter to Vivendi Universal (V) executives detailing its proposal to merge with Vivendi's entertainment unit in a way that would provide cash to Vivendi, according to the Wall Street Journal.

Freddie Mac (FRE) is likely to come under pressure to revamp its board and alter its business model as it searches for a new CEO to succeed Greg Parseghian, according to the Wall Street Journal. S&P reiterates its avoid opinion on the shares.

Amgen (AMGN) says the FDA approved an expanded indication for Enbrel to inhibit the progression of structural damage of active arthritis in patients with psoriatic arthritis.

Health Management (HMA) agreed to acquire five non-urban hospitals from Tenet Healthcare. The transaction is expected to close on or before Jan. 1, 2004.

Prudential reportedly downgraded Alcoa (AA) to hold from buy.

Banc of America upgraded PeopleSoft (PSFT) to buy from neutral.

Biovail (BVF) received an administrative inquiry into its clinical experience and marketing programs related to Cardizem LA. Biovail says it's confident its programs are fully compliant with regulatory guidelines and requirements.

SoundView upgraded Advanced Micro Device (AMD) to outperform from neutral.

Verizon Communications (VZ) and its unions have made significant progress at the bargaining table over the apast several days -- enough that an end appears within reach.


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