Markets & Finance

Intel's Outlook Fails to Impress the Street


Intel (INTC) sees fourth quarter revenue of $10.4 billion to $10.6 billion vs. the previous range of $10.2 billion to $10.8 billion. It narrows gross margin percentage estimates to 63%, plus or minus a point. Capital spending is expected to be below the midpoint of previous estimates of $5.9 billion, plus or minus $200 million.

Jamdat Mobile (JMDT) agreed to be acquired by Electronic Arts (ERTS)for $27 per share cash, plus the assumption of outstanding stock options, at a total of about $680 million.

Viacom's (VIA) Paramount unit is poised to make an offer for DreamWorks Animation SKG(DWA), which has been in talks to be acquired by GE's (GE) NBC Universal unit, according to the Wall Street Journal.

Valor Communications Group(VCG) is to acquire Alltel's (AT) wireline business segment after Alltel spins it off. Valor is to issue about 400 million shares in exchange for Alltel Wireline. Upon completion of the deal, Valor shareholders will own 15% of the combined entity.

Eli Lilly (LLY) sees fourth quarter full 2005 adjusted earnings per share at the top of its 73 cents to 79 cents and $2.80 to $2.86 guidance ranges, respectively. It also sees $3.10 to $3.20 2006 operating earnings per share.

Fresh Del Monte Produce (FDP) cut its 2005 earnings per share estimate to $1.90 to $2.00. It cites lower-than-expected demand for pineapples in North America in November, as well as increased competition due to higher banana production volume.

Dave & Buster's (DAB) agreed to be acquired by an affiliate of Wellspring Capital Management LLC for $18.05 per share cash.

Teva Pharmaceutical Industries(TEVA) entered an agreement with Cephalon (CEPH) to settle pending patent infringement disputes in the US and UK related to Provigil Tablets. Cephalon granted Teva a non-exclusive royalty-bearing right to market and sell a generic version of the drug.

Merck (MRK) says that publicized results of its Vioxx study were fair and accurate as of the pre-specified cutoff for analysis. Events referred to by the New England Journal of Medicine were reported after a pre-specified cut-off date.

Allied Defense Group (ADG) received a "warning letter" from the American Stock Exchange (AMEX) stating that Allied Defense Group is not in compliance with AMEX rules regarding the listing of additional shares.

Entercom Communications (ETM) revised its fourth quarter net revenue guidance to $103 million to $104 million, citing the on-going impact of Hurricane Katrina on its operations in New Orleans, and the acceleration of a major format change in Seattle into this quarter as well as the deterioration of national sales conditions.

Alpha Natural Resources (ANR) sees $128 million to $138 million 2005 earnings before interest taxes depreciation and amortization, or EBITDA (including stock-based comp charges), as well as $306 million to $347 million 2006 EBITDA (including stock-based comp expense).

Ameritrade Holding (AMTD) sees 18 cents to 23 cents first quarter earnings per share (including the impact of an increase in the market price of Knight's stock, it assumes no change through the end of the quarter.) It sees 80 cents to 99 cents fiscal year 2006 earnings per share (from Ameritrade on a stand-alone basis).

Dendrite (DRTE) sees fourth quarter revenue of $106 million to $108 million and GAAP net of a penny loss to 4 cents earnings per share. It notes delayed transaction closings, forex, higher-than-expected expenses, and the possible increase in its tax rate.

Versant (VSNT) posted 14 cents fourth quarter earnings per share vs. $4.04 loss amid a 13% revenue rise, the absence of year ago impairment of goodwill, and intangibles expenses. It sees $1.6 million to $2 million fiscal year 2006 net income.

Research In Motion (RIMM) NTP, a patent firm that claims technology in RIMM's BlackBerry handheld devices violates its patents, would be willing to settle with RIMM for about 5.7% of future BlackBerry sales, according to WSJ.com.


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