Markets & Finance

Xilinx Drops on Lowered Guidance


Xilinx (XLNX) shares dropped Monday after the company cut its unchanged to up 4% sequential second quarter sales forecast to down 1% to 2%. It noted that while September turned the business less than forecast, sales from companies with manufacturing operations in the Asia Pacific decreased by the double digits sequentially.

Refco (RFX) shares fell sharply after it said its financials for fiscal year 2002 (ended February) through fiscal year 2005, and the first quarter of fiscal year 2006 should no longer be relied upon due to an investigation surrounding certain receivables owed to the company by an entity controlled by CEO Phillip Bennett, who has taken leave of absence.

Lincoln National (LNC) agreed to acquire Jefferson-Pilot (JP) in a deal valued at about $7.5 billion, at 1.0906 Lincoln National shares or $55.96 in cash per Jefferson-Pilot share.

Delphi Corp. (DPH) filed voluntary Chap. 11. Non-U.S. units were not included in the filing. The company named Robert Dellinger as chief financial officer(the former CFO for Sprint (S)), succeeding John Sheehan, who was named chief restructuring officer.

Dana (DCN) shares fell sharply after the company said it will restate its 2004, as well as the first quarter and second quarter of its 2005 financial statements. It postponed its third quarter earnings per share release, and withdrew its 2005 earnings per share guidance.

General Motors (GM) said that "although challenges faced by Delphi during its restructuring process create operating, financial risks for GM," it expects no immediate effect on its global automotive operations. Bank of America reportedly cut its recommendation on GM to sell.

Due to hurricane related work delays and cost growth, Northrop Grumman (NOC) cut its $31 billion to $31.5 billion 2005 revenue forecast to between $30.5 billion and $31 billion, and its $3.90 to $4.00 earnings per share forecast to between $3.55 and $3.65.

Unisys (UIS) widened its 4 cents to 6 cents third quarter loss forecast to between 7 cents and 9 cents of loss (including a previously announced 2 cents charge.) It cites lower-than-expected results in services and technology.

Goody's Family Clothing (GDYS) agreed to be acquired by an affiliate of Sun Capital Partners at $8 cash per Goody's share.

FLIR Systems (FLIR) said it sees lower-than-expected 2005 earnings per share of $1.12 to $1.17 on revenues between $510 million and $520 million. It sees 21 cents to 23 cents third quarter earnings per share on an approximately 18% rise in revenues.

Dominion Homes (DHOM) said it sold 433 homes in the third quarter vs. 598 homes in the same quarter of 2004, a 28% decrease; the sales value of homes sold fell 25% to $81.8 million. Due to lower-than-expected home sales and deliveries, its third quarter earnings per share will be below analyst's expectations.

MTR Gaming Group (MNTG) sees $97.5 million to $98.0 million third quarter revenue and 10 cents earnings per share. It noted lower-than-expected traffic and revenues at its Mountaineer and Binion's properties. It also cited negative operating leverage and operating expenses that exceeded expectations.

Merck (MRK) is exercising its option to use Crucell's (CRXL) PER.C6 gene technology. Crucell will receive a $1 million exercise fee with the prospect of annual fees and milestone payments, plus royalties on net sales.

WD-40 Company (WDFC) sees better-than-expected fiscal year 2006 earnings per share of $1.55 to $1.65.

Flagstar Bancorp (FBC) said it is likely it will be unable to meet earlier guidance for 2005 earnings per share of $1.70 to $2.00. It cites further flattening of the yield curve, and tighter spreads on loan sales than in the second quarter.

Lamson & Sessions (LMS) raised its $118 million to $121 million third quarter sales forecast to $128 million plus, and its 27 cents to 30 cents earnings per share view to between 33 cents and 35 cents. It noted it has encountered some disruption in its supply chain of key raw materials, but retains its 23 cents to 25 cents fourth quarter earnings per share guidance.

Prudential reportedly downgraded Aeropostale (ARO) to underweight from neutral.

Yahoo (YHOO) announced its entry into podcasting with the beta release of Yahoo! Podcasts.

Patterson Companies (PDCO) is to be added to the S&P 500 after close of trading on Oct. 10, replacing Delphi (DPH), which is being removed due to its low market cap. MSC Industrial Direct (MSM) is to be added to the S&P MidCap 400 Index after close of trading on Oct. 10, replacing Patterson.

Antigenics (AGEN) Released preliminary survival data from its randomized Phase 3 metastatic melanoma trial. It says better-prognosis Stage IV patients treated with Oncophage show improved survival.

ev3 (EVVV) proposed to acquire the remaining 29.8% of Micro Therapeutics (MTIX) shares that it doesn't already own, at 0.45797 ev3 shares for each Micro Therapeutics share.

Aladdin Knowledge Systems (ALDN) cut its $19.8 million to $20.5 million third quarter revenue guidance to $19.5 million to $19.7 million while reffirming its 22 cents to 25 cents earnings per share guidance. It ties the revised revenue view to the timing of certain new business around the end of the quarter.

IPC Holdings (IPCR) said it anticipates the net impact from hurricanes on its third quarter net income will be between $650 million and $750 million.

Flagstar Bancorp (FBC) said it's likely it will be unable to meet earlier guidance for 2005 earnings per share of between $1.70 and $2.00. It cited further flattening of the yield curve and tighter spreads on loan sales than in the second quarter.

Marconi (MRCIY) American Depositary Shares rose after the Sunday Telegraph newspaper in Britain reported that LM Ericsson Telephone (ERICY) submitted the highest bid for the company, trumping an offer made by the Chinese firm Huawei. Terms may include the 20% spinoff of Marconi if LM Ericsson gets control.


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