Markets & Finance

Martha Stewart Found Guilty


Martha Stewart was convicted of two counts of false statements, one count of conspiracy, and one count of obstruction of justice by a federal jury Friday. Each count carries a maximum prison term of five years and a $250,000 fine. Shares of her company, Martha Stewart Living Omnimedia (MSO) rose before being halted ahead of the news, and are now trading lower. Last week, Martha was found not guilty of securities fraud related to the timing of the sale of her ImClone Systems (IMCL) stock in December, 2001. Her broker and co-defendant, Peter Bacanovic, was also found guilty on four counts, plus a perjury charge, based on phone logs of his calls to Stewart.

Digital-recording device maker TiVo (TIVO) posted an 18 cents fourth-quarter loss, vs. a 56 cents loss on an 85% revenue rise. TiVo sees 1.5 million to 1.6 million in subscriptions for fiscal 2005, up from the prior guidance of 1.0 million to 1.2 million. It sees $23 million to $24.2 million in first-quarter total revenue, and a $13 million to $15 million operating loss. WR Hambrecht keeps buy.

Mandalay Resort (MBG) posted 35 cents, vs. 6 cents fourth-quarter earnings per share on an 11% revenue rise. Bear Stearns upgraded the shares to outperform from peer perform.

Symbol Technologies (SBL) posted 7 cents fourth-quarter earnings per share, vs. a 30 cents loss on a 5% revenue rise. Symbol noted fourth-quarter revenue was somewhat lower than guidance due to the recording of additional revenue to a European distributor. The company sees 40 cents to 50 cents 2004 earnings per share on 10% to 15% revenue growth. S&P and JP Morgan cut its estimates.

McDonald's (MCD) posted 14% higher worldwide comparable restaurant sales for February, and 23% higher total sales (15% in constant currencies). It's the burger chain's 10th consecutive monthly gain, amid stronger U.S. sales.

Intel (INTC) narrowed the $7.9 billion to $8.5 billion first-quarter revenue guidance to $8 billion to $8.2 billion. The world's largest chipmaker maintains its gross margin assumption of around 60%. S&P reiterates buy, but cut its target price. CS First Boston cut its estimates.

Boston Scientific (BSX) received FDA approval to market its Taxus Express2 paclitaxel-eluting coronary stent system. S&P reiterates accumulate. UBS Financial reiterates buy. CIBC World reiterates sector outperform.

Deutsche Bank reportedly upgraded Qualcomm (QCOM)to buy from hold.

Merrill Lynch added QLogic (QLGC) to its Focus List, and reiterates buy.

Gray Television (GTN) raised its quarterly dividend by 50%, to 3 cents, and set a two million stock buyback.

Danka Business (DANKY) will reorganize its businesses into two operating groups: a new Americas Group extending from Canada to Chile, and a new group encompassing Europe and Australia.

Gateway (GTW) announced significant price cuts to its lineup of E-Series managed desktop PCs.

WebMD (HLTH) posted 3 cents fourth-quarter earnings per share from continuing operations, vs. a 1 cent loss on a 13% revenue rise. It sees 2004 net income of $54 million to $60 million on revenue of $1.145 billion to $1.175 billion, which is an increase of about 19% to 22%.


Steve Ballmer, Power Forward
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