Markets & Finance

Movie Gallery Expects Lower Sales


Movie Gallery (MOVI) said it expects sales for the third quarter to decline 8% to 10% at stores open longer than a year; the company noted that the current "slump" at the box office is impacting the entire home video industry. Movie Gallery sees comparables for the fourth quarter unchanged to down 6%.

Adobe Systems (ADBE) posted 29 cents vs. 21 cents third quarter earnings per share (Generally Accepted Accounting Principles) on a 21% revenue rise. The company sees fourth quarter revenue of $490 million to $510 million and 27 cents to 29 cents earnings per share.

Matrixone (MONEE) said its annual report filing/Form 10-K for fiscal year 2005 will be delayed beyond the Securities and Exchange Commission's filing deadline of 9/15/05, to give more time for the company to completely review its revenue recognition practices and restatement of financial results. The company expects a 9/30 filing.

Trinity Industries (TRN) raised its 44 cents to 51 cents third quarter earnings per share guidance to 50 cents to 57 cents. The company cited improved efficiencies in its North American Rail operations and better-than-anticipated results in its construction-related operations. S&P reiterated its buy opinion on the stock.

Based on inflationary pressures and isolated operational issues, Owens-Illinois (OI) says its earnings per share will likely fall below the lower end of its previously confirmed range of between $1.76 and $2.00. S&P downgraded the shares to sell from buy.

Sealed Air (SEE) said it sees 2005 earnings per share of $2.65 to $2.80 compared with its previously announced range of $2.80 to $2.90. The company cited escalating petrochemical-based raw material and other energy-related costs as a result of the hurricane in Gulf Coast.

Open Solutions (OPEN) agreed to purchase Bisys Group's (BSG) information services group for $470 million in cash. Open Solutions expects the acquisition to contribute $180 million to $195 million to its revenue in 2006; and $45 million to $55 million to earnings before interest taxes depreciation and amortization, and 6 cents to 12 cents to earnings per share.

Charles & Colvar (CTHR) said it sees third quarter sales of $11 million to $11.8 million, vs. the year ago's $5.2 million.

Protein Design Labs (PDLI) said that Chief Financial Officer Glen Sato is resigning from the company at year-end 2005; effective Nov. 2, he will no longer be the officer, although he will remain on staff until the end of the year. Three other top executive changes were also made.

Archer-Daniels-Midland (ADM) said that the president and chief operating officer Paul Mulhollem will retire from the company, effective immediately.

Boston Scientific (BSX) received Food and Drug Administration clearance to market its Flextome Cutting Balloon Dilation Device for the treatment of coronary artery blockages often resistant to conventional balloon angioplasty. Plans a product launch immediately.

Digitas (DTAS)said it expects to take about $3 million to $4 million in bad debt expense in the third quarter related to Digitas's bankruptcy. Included in this charge, the company expects between 5 cents and 7 cents third quarter earnings per share (Genearlly Accepted Accounting Principles), and 40 cents to 43 cents in 2005.

Tektronix (TEK) posted 17 cents vs. 43 cents first quarter earnings per share from continuing operations on a 6% sales decline, acquisition costs, business realignment costs, and 1 times items. Excluding items, earnings per share were 25 cents. The company sees its second quarter between $240 million and $250 million, and its earnings per share from continuing operations before items of 25 cents to 29 cents.

Annaly Mortgage Management (NLY) declared a third quarter cash dividend of 13 cents vs. the second quarter's 46 cents.

CNF (CNF) continued to expect third quarter earnings per share from continuing operations of $1.00 to $1.08.

Daimlerchrysler (DCX) The company's Chrysler Group unit unveiled three product programs for China and Taiwan, representing an investment of $350 million. They will produce Minivans in Taipei, and Fuzhou, Chrysler 300C in Beijing all for local markets.

Max Re Capital (MXRE) said its preliminary estimates indicate that the company's third quarter earnings per share will be negatively impacted by $60 million to $90 million as a result of Hurricane Katrina.

Heidrick & Struggles (HSII) set a $50 million stock buyback program.

NuCO2 (NUCO) inked its master service agreement with Metromedia Restaurant Group, which designates NuCO2 as its preferred carbonating beverages and service supplier for 400 domestic franchised concept restaurants.

Geron (GERN) priced a 6 million share public offering at $9.00 per share. Concurrent with the closing of the offering, Merck (MRK) will exercise a warrant to purchase $18 million in Geron stock at $9.00 per share.

Design Within Reach (DWRI) shuffled its management after cutting 2005 earnings per share guidance last month. The company named Tara Poseley to succeed Wayne Badovinus as president and CEO; Mr. Badovinus is to be chairman, succeeding John Hansen. CIBC World downgraded the stock to sector perform.

Imagistics International (IGI) agreed to be acquired by OCE N.V. for $42 per share in cash.

Anixter (AXE)set a special dividend of $4.00 per share.


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