Markets & Finance

Delphi Shares Drop Sharply


Delphi Corp. (DPH) shares lost nearly half their value Friday following a Wall Street Journal reports that the company asked the UAW for big concessions, including a wage-and-benefits cut of over two-thirds, a negotiating stance likely to push it closer to Chapter 11. S&P reiterates hold.

UTStarcom (UTSI) shares dropped Friday after the company cut its $660 million to $680 million third quarter revenue guidance to $620 million to $640 million. It lowered its 15% to 18% gross margin forecast to 9% to 11%. It sees potential asset impairment charges and received notice of a formal Securities and Exchange Commission inquiry.

Accenture (ACN) posted 38 cents vs. 30 cents fourth qaurter earnings per share on a 13% revenue rise. The company sees 32 cents to 34 cents first quarter earnings per share, and $1.45 to $1.50 in fiscal year 2006 (GAAP).

Comverse Technology (CMVT) agreed to buy the GSS division and related assets of CSG Systems International (CSGS) for about $251 million. The company noted that GSS makes software-based billing solutions and said it expects the acquisition to be slightly accretive to fiscal year 2006 net income.

Blockbuster (BBI) said its third quarter reported results will reflect that it is in compliance with its debt covenants for the third quarter. The company estimated its third quarter domestic same-store rental revenues are down 1%, outperforming the industry.

Fairfax Financial (FFH) estimated aggregate potential net losses relating to Hurricane Katrina of $388 million before tax and minority interests, or $233 million after tax and minority interests.

Tommy Hilfiger (TOM) reduced its staff by about 135 U.S. employees and says the financial impact of the action on fiscal year 2006 is expected to be neutral.

J Jill Group (JILL) said it expects to report a 4.7% third quarter same-store sales gain, amid an 8.5% total sales rise and 12 cents to 14 cents loss. The company says its profit margin is expected to remain relatively flat.

Wyeth (WYE) said it sees third quarter pro forma earnings per share in the mid- to upper 70 cents, above its current mean estimate of 72 cents. The company reaffirmed its $2.80 to $2.90 2005 pro forma earnings per share guidance, but says that if current trends continue, it is more likely to reach or exceed the upper end.

Imergent (IIG) received notice from the American Stock Exchange indicating that the company is subject to potential delisting as it had not filed its 10-K for fiscal year 2005.

Calamp (CAMP) posted 16 cents vs. 8 cents second quarter earnings per share on a 13% revenue rise. The company sees third quarter revenue of $60 million to $68 million, and 17 cents to 21 cents earnings per share. It sees fiscal year 2006 revenue up about 10% over last year.

Chubb (CB) estimated that its total losses from third quarter catastrophes, primarily Hurricane Katrina, is to be approximately $600 million pre-tax ($390 million after-tax).

CRIIMI MAE (CMM) agreed to be acquired by CDP Capital-Financing, a unit of Caisse de depot et placement du Quebec, at $20 cash per CRIIMI MAE share.

Lone Star Steakhouse & Saloon (STAR) preliminarily posted 2 cents vs. 17 cents third quarte earnings per share on a 0.6% same-store sales drop and 0.5% total sales rise. The company noted that costs associated with Hurricane Katrina reduced its earnings per share by 8 cents.

Odyssey Re Holdings (ORH) said it expects losses during the third quarter from Hurricane Katrina, net of applicable reinsurance and reinstatement premiums, of $225 million before taxes, or $146 million in after-tax net loss. The company is to sell 4.1 million Odyssey Re Holdings shares to Wachovia Capital Markets.

Beckman Coulter (BEC) Agreed to acquire Diagnostic Systems Labs and said it expects 1 cents dilution to fourth quarter earnings per share, and 6 cents in 2006.

Aptimus (APTM) said it sees lower-than-expected $3.8 million third quarter revenue. It doesn't think it likely that it will achieve $20 million 2005 revenue guidance. Chief Financial Officer John Wade is leaving. Merriman Curhan downgraded the stock to neutral from buy.

Lifecell (LIFC) said it initiated the voluntary recall of certain AlloDerm, Repliform, and GraftJacket product on Sep. 30. The company noted that the recall was prompted when questions were raised about donor documentation received from one tissue recovery organization.

Environmental Power (EPG) Filed with the Securities and Exchange Commission to offer 2 million common shares.

Apria Healthcare (AHG) said that third quarter revenues appear to have slowed to less than 1% growth year over year due to a slowdown in several lines. The company cut its 5% to 6% 2005 revenue growth forecast to between 2% and 3%. It sees $1.68 to $1.72 2005 earnings per share. S&P cut its estimates and price target on the stock.

BioCryst Pharmaceuticals (BCRX) The New York Times published an article highlighting the advantages of the company's permamivir as the most promising drug on the horizon for the treatment of avian flu.


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