Markets & Finance

Cisco Beats Estimates


Cisco (CSCO) posted 23 cents third-quarter earnings per share excluding special items, vs. 19 cents a year ago, on $6.2 billion in revenue. Sales were up 10% and beat analysts' estimates. Wall Street analysts were expecting the company to post a profit of 22 cents per share on sales of $6.16 billion, according to Thomson Financial.

Fossil (FOSL) posted first-quarter earnings per share of 32 cents, (including a tax benefit), vs. 22 cents a year ago, on a 17% sales rise. The company notes March sales slowed markedly in certain Euro markets. It sees 14 cents second-quarter earnings per share and cuts his $1.53 to $1.57 2005 earnings per share estimate to $1.48. S&P reiterates buy.

Action Performance (ATN) reported a second-quarter loss of 16 cents per share, vs. 7 cents EPS a year ago, on a 9.9% sales drop. The company sees third-quarter revenue sequentially higher, but below a year ago, and wholesale sales of die cast to be down year-over-year. It suspended its 5-cents quarterly dividend.

Vertex Pharmaceuticals (VRTX) says interim results show investigational oral hepatitis C virus protease inhibitor VX-950 was well- tolerated and demonstrated potent antiviral activity in a Phase Ib clinical trial. S&P raised its price target by $2 to $14.

Priceline.com (PCLN) posted 10 cents, vs. 11 cents a year ago, first-quarter earnings per share as non-cash amortization expenses associated with acquisitions offset a 4.1% revenue rise. The company sees 25 cents to 31 cents second-quarter GAAP earnings per share. Piper Jaffray reportedly downgrades to market perform.

Delta Air Lines (DAL) Form 10-Q says the airline will record a substantial net loss for the 9 months ending Dec. 2005, and that cash flows from operations will not be sufficient to meet all of its liquidity needs for that period. S&P reiterates sell.

Great Atlantic & Pacific Tea (GAP) posted a 15-cent fourth-quarter loss per share, vs. a $1.56 loss a year ago, as management of expenses and liquidity offset a 5.9% revenue decline. The company announced a restructuring, including exploring the potential sale of A&P Canada and the divestiture of Farmer Jack and Food Basics operations.

7-Eleven (SE) posted 5.7% higher U.S. same-store merchandise sales and 12% higher total sales.

Investigators probing American International Group (AIG) said they believe knowledge of, and participation in questionable accounting extends beyond two of the company's former senior executives, according to the Wall Street Journal.

Boeing (BA) and GE Commercial Aviation Services (GECAS) confirm an order for six Boeing Next-Generation 737-700s valued at about $330 million at list prices. GECAS will lease these airplanes to Sky Europe, based in Slovakia.

International Business Machines (IBM) acquired privately-held Gluecode Software, a provider of software and support services for open source application infrastructure software. Terms were not disclosed.

Bristol-Myers Squibb (BMY) filed a 10-Q that revises certain financial info relating to additional litigation reserves recorded after its first-quarter results. Pre-tax earnings were reduced by $110 million, reflecting litigation reserves.

General Motors (GM) maintained its 50 cents second-quarter dividend.

Saks (SKS) completed a previously announced internal investigation by an audit committee. It concluded that during its 1999 to 2003 fiscal years, total markdown allowances improperly collected from vendors was about $20 million.

Inamed (IMDC) posted 38 cents, vs. 49 cents a year ago, first-quarter GAAP earnings per share as 14 cents per share of expenses relating to pending merger with Medicis Pharmaceutical (MRX) offset a 16% sales rise. S&P reiterated buy.

Audible (ADBL) posted 3 cents first-quarter earnings per share, vs. a 56-cent loss a year ago, on a 91% revenue rise. The company raised its $59 million to $62 million 2005 revenue guidance to $62 million to $65 million.

Domino's Pizza (DPZ) posted 35 cents, vs. 28 cents first-quarter earnings per share (pro forma) on an 11% higher domestic same-store sales, and 14% higher global retail sales.

PDI Inc. (PDII) posted a breakeven first-quarter, vs. 40 cents, earnings per share on a 12% revenue decline.

Semiconductor testing service ASE Test Ltd. (ASTSF) posted 26% lower April revenue.

World Fuel Service (INT) is to be added to the S&P SmallCap 600 after the close of trading on a date to be announced, replacing Patina Oil & Gas Corp., which is being acquired.

Progenics Pharmaceuticals (PGNX) posted a 76-cent first-quarter loss, vs. a 61-cent loss, despite a 53% revenue rise.

Nuance Communications (NUAN) agreed to be acquired by ScanSoft (SSFT) in a $221 million deal. Terms of the agreement give 0.77 ScanSoft share and $2.20 cash for each Nuance share. Nuance posted a 13-cent first-quarter loss, vs. a 7-cent loss on a 7.1% revenue drop.

Goodrich Petroleum (GDP) posted a 30-cent first-quarter loss, vs. 10 cents earnings per share, from continuing operations as an unrealized loss on derivatives related to gas hedges offset a 22% total revenue rise.

Intermune (ITMN) is in a preliminary deal to settle its shareholder class action lawsuit and its shareholder class is to receive $10.4 million. The company says it will include about $2 million of selling, general, and administrative expense in first-quarter results to reflect the potential cost of this legal action.

NTL (NTLI) posted a $1.36 first-quarter loss, vs. a $1.60 loss, on a 3.5% revenue rise.

Midway Games (MWY) posted a 19-cent first-quarter loss, vs. a 27-cent loss, despite a 31% revenue drop. The company sees $40 million second-quarter revenues with a net loss of $25 million. It sees $225 million 2005 revenue and a $47 million net loss.

Internet survey company Greenfield Online (SRVY) posted 11 cents, vs. a penny, first-quarter earnings per share on a 77% revenue rise. It sees $3.4 million to $4.0 million second-quarter operating income on $25 million to $26.5 million revenue. The company raised 2005 guidance to $102 million to $108 million revenue, with operating margin of 20% to 21%.


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