Markets & Finance

GM Boosts '05 Loss, Delays 10-K


American International Group (AIG) posts 17 cents vs. 62 cents fourth quarter earnings per share (EPS) as charges for regulatory settlements, increased reserves for losses, and loss expenses offset a slight increase in net premiums written.

The St. Paul Travelers (STA) the Wall Street Journal reports that the insurance company is in preliminary merger talks with Zurich Financial, one of Europe's largest insurers. A combined firm could rival AIG in size.

General Motors (GM) delays filing its 2005 10-K due to an accounting issue at the residential mortgage subsidiary of GMAC. When it files its 10-K, GM says 2005 results will include adjustments for three charges, which will increase GM's 2005 loss to $10.6 billion.

Maytag (MYG) shares were seen lower on reports that the US Justice Dept. may oppose Whirlpool's acquisition of Maytag.

Rambus (RMBS) signs a technology license agreement with IBM which will allow IBM to build Cell Broadband Engine processors and companion chips using Rambus' FlexIO processor bus and XDR memory interface technologies.

Royal Dutch Shell (RDSA) says it completed a review of its global LPG marketing and distribution business. It decides to retain this business within its downstream portfolio.

California Micro Devices (CAMD) sees better-than-expected 7 cents to 8 cents fourth quarter EPS on revenue of $16.5 million to $17.5 million and fiscal year 2006 EPS of 29 cents to 30 cents. Chief Financial Officer Gregory Miller resigns and Kevin Berry is to replace him.. The company is to acquire Arques Technology for $8 million, and performance-based earn-out.

UTStarcom (UTSI) delays filing its 2005 10-K. The company notes that the audit committee needs more time to complete its investigation into premature recognition of revenue and other issues. It sees 2005 net loss of about $462 million.

Pride International (PDE) posts preliminary 24 cents vs. 15 cents fourth quarter EPS on a 23% revenue rise. It says that in light of the status of the Audit Committee's ongoing investigation, it cannot file its 2005 10-K until additional information is obtained.

Schering (SHR)'s Berlex unit says the Food and Drug Administration approved YAZ, a new monophasic oral contraceptive, the first pill to combine 20 mcg of ethinyl estradiol with progestin drospirenone.

PETCO Animal Supplies (PETC) posts 46 cents vs. 45 cents fourth quarter EPS on a 2% same-store sales rise and 10% net sales rise. It sets a $100 million stock buyback plan. It expects a first quarter same-store sales increase of 1% to 3% and EPS of 23 cents to 25 cents, excluding FASB-123.

Borders Group (BGP) posts $1.78 vs. $1.62 fourth quarter EPS (GAAP) on a 6.3% consolidated sales rise. It sees $1.42 to $1.60 fiscal year 2007 EPS, including charges.

MEMC Electronic Materials (WFR) says its annual report on Form 10-K for 2005 cannot be filed on time. It cannot complete its financial statements and related audit because the Audit Committee has not yet completed its previously announced review.

Tektronix (TEK) posts 30 cents vs. 26 cents third quarter EPS from continuing operations (GAAP) on a 2.3% revenue rise. It sees fourth quarter sales of about $275 million to $285 million and 38 cents to 42 cents EPS from continuing operations before items.

SBA Communications (SBAC) is to buy AAT Communication Corp., the fifth largest independent tower owner in the U.S., for $634 million in cash and issuance of 17.059 million in SBA Communications stock. It expects to realize $8.5 million to $10.5 million in annual synergies, and incur $10 million 1 times integration costs.

Power-One (PWER) says existing contract manufacturer's supply shortages will affect sales and profitability for the first quarter. However, the company is seeing extremely high demand and 90-day backlog greater than 40% higher. It reaffirms 10% to 15% 2006 sales growth.

Barr Pharmaceuticals (BRL) the Food and Drug Administration informs the company that additional clinical data will not be required to support approval of Duramed Pharmaceuticals Inc.'s NDA for Seasonique extended-cycle oral contraceptive.

William Lyon Homes (WLS) the homebuilder says General William Lyon, chairman & CEO, announced that he commenced an offer to purchase all outstanding shares of William Lyon Homes not already owned by him for $93 per share in cash (without interest, less any required withholding taxes).

Worldspace (WRSP) posts 90 cents fourth quarter loss vs. $71.45 loss (including stock compensation expenses and other costs) on a 95% revenue rise.

eOn Communications (EONC) posts 5 cents vs. 4 cents second quarter EPS on a 16% revenue rise.

Optical Cable (OCCF) posts 4 cents first quarter loss vs. 4 cents EPS on an 11% sales decline.

Cintas (CTAS) posts 46 cents vs. 41 cents third quarter EPS on an 11% revenue rise. It sees fiscal year 2006 EPS of $1.92 to $1.96 on revenue of $3.38 billion to $3.42 billion.

Genentech (DNA) at its annual investment meeting, the company says it expects about 40% to 50% growth in non-GAAP 2006 EPS.

j2 Global Communications (JCOM) delays filing its 10-K for year-end 2005 as a result of the ongoing review of pricing of services provided to the company by one of its subsidiaries.

Source Interlink (SORC) says its Board, in consultation with advisor The Yucaipa Cos, hired Deutsche Bank Securities to act as its exclusive financial advisor in the process of evaluating alternatives to enhance stockholder value.


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