<TABLE cellSpacing=0 cellPadding=2 width="100%" bgColor=white border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:js="http://cbs.markewatch.com/xsl"><TBODY><TR><TD width="100%">Electric utility Ameren Corp. (AEE: news, chart, profile) , which supplies primarily to Missouri and Illinois, has been downgraded to neutral from buy by Merrill Lynch, as Merrill believes Ameren to be fairly valued at this point. The broker said the recent environment of falling bond yields and high energy prices, which has "been the best of both worlds" for Ameren, are mutually exclusive and will not both continue as the economy either strengthens or slows. Merrill also noted the improving Missouri regulatory environment.
Bebe Stores (BEBE: news, chart, profile) confirmed its three-for-two stock split, which becomes effective after the close of trading Friday, and said its board has approved an increase in its quarterly dividend to 4 cents a share from 2.2 cents a share. The higher dividend, which reflects the stock split, is payable on July 1 to shareholders of record on June 20. The Brisbane, Calif., retailer of women's apparel attributed the dividend increase to strong customer acceptance of its merchandise and a solid business performance. The shares closed Thursday at $42.57, up 9.3%.
BellSouth Corp. (BLS: news, chart, profile) said that its BellSouth Intellectual Property Marketing Corp. unit has entered into a license and settlement agreement with Comverse Inc., a unit of Comverse Technology Inc. (CMVT: news, chart, profile) . Under terms of the settlement, Comverse has taken non-exclusive patent licenses from the BellSouth unit for voicemail call return technology and a one-number call routing technology. The licenses are paid-up licenses, BellSouth said. Financial terms weren't disclosed.
Biogen Idec (BIIB: news, chart, profile) was downgraded to equal weight from overweight at Morgan Stanley, which feels its multiple sclerosis drug Avonex may face greater-than-expected risk given potential competition from Novartis drug. Analyst Steven Harr also cut his stock price target to $40 from $44. The stock fell 77 cents, or 2%, to $37.30 in Instinet pre-open trading. "We have viewed Avonex as a stable source of cash flows, without much growth, but if Novartis eventually launches FTY720, this drug will face serious pressure, negatively impacting out long-term growth assumptions and terminal growth rate," Harr said.
Blue Coat Systems Inc. (BCSI: news, chart, profile) said that its fourth-quarter earnings rose to $2.8 million, or 21 cents a share, from $1.4 million, or 11 cents a share, a year ago. Adjusted earnings were $2.3 million, or 17 cents a share. Revenue rose to $28.4 million from $21.1 million a year earlier. Analysts polled by Thomson First Call were looking for fourth-quarter earnings of 15 cents a share on revenue of $28 million. The company is expecting first-quarter earnings of 15 cents to 20 cents a share. Adjusted earnings are expected to be $2.3 million to $3.1 million, or 17 to 22 cents a share, the Sunnyvale, Calif.-based company said.
The Buckle Inc. (BKE: news, chart, profile) raised its quarterly dividend to by 3 cents, or 25%, to 15 cents a share. The new dividend will be paid July 27 to shareholders of record on July 15. The casual retailer's stock closed Thursday up $1.79 at $42.51.
Build A Bear Workshop Inc. (BBW: news, chart, profile) was downgraded to hold (high risk) from buy (high risk) by Citigroup Smith Barney, citing the shelving of a secondary offering because management believes "there is too much work to be done" and the fact that private-equity holders have begun to liquidate their positions. The broker also pointed to second-quarter sales, likely trending below expectations, and the possible departure of President and COO Barry Erdos.
Chartered Semiconductor Manufacturing (CHRT: news, chart, profile) now expects its second-quarter loss to come in at the low end of its prior forecast. Chartered in late April forecast a second-quarter loss ranging from $78 million to $88 million.
U.S.-listed shares of Cognos (COGN: news, chart, profile) slumped in pre-market after the Canadian software company warned revenue for the first quarter ending May 31 will be bewteen $198 million and $200 million, as it closed fewer larger transactions late in the quarter. To a lesser extent, the stronger U.S. dollar also weighed, it said. Cognos said it expects earnings to be between 21 and 23 cents a share. Analysts had expected an EPS of 25 cents on revenue of $207.5 million, according to Thomson First Call data.
Cree Inc. (CREE: news, chart, profile) plans to close the Sunnyvale, Calif. plant where it makes silicon radio frequency and microwave chips. The company said it plans instead to concentrate on wide bandgap radio-frequency and microwave products based on its silicon carbide and gallium nitride technology. The Cree Microwave Inc. subsidiary will accept final buy orders through June. It plans to wind down the operations of the business by December. See full story.
DDi Corp. (DDIC: news, chart, profile) entered into a standby purchase agreement with certain investors to sell up to $75 million of its common stock to support a $75 million rights offering. The company plans to use the net proceeds of both the private stock sale and the rights offering to make dividend payments on, repay, buy back or redeem a portion of the outstanding shares of its Series B preferred shares; to repay in full its senior accreting notes; and for working capital.
Kellwood Co. (KWD: news, chart, profile) reported first-quarter net earnings of $12.5 million, or 45 cents a share, down 50% from $25 million, or 90 cents a share, last year. Revenue fell 18% to $639.4 million from $686.1 million a year ago. Analysts surveyed by Thomson First Call were expecting first-quarter earnings of 44 cents a share on revenue of $644 million. The St. Louis-based apparel licenser forecast second-quarter earnings of $10.5 million, or 38 cents a share, on sales in the $570 million range. It forecast 2005 earnings of $68.5 million, or $2.38 a share, and full-year 2006 revenue in the $2.4 billion range.
Hollinger International (HLR: news, chart, profile) said that former chief executive Conrad Black and his wife, Barbara Amiel Black, have retired as directors, effective immediately.
Intel (INTC: news, chart, profile) may be in focus after both J.P. Morgan and UBS lifted their earnings and revenue forecasts for the world's biggest chip company.
L-3 Communications (LLL: news, chart, profile) agreed to acquire Titan Corp. (TTN: news, chart, profile) for $23.10 a share, or $1.97 billion, and to assume $680 million of Titan's debt. The price is a 1.3% premium to Titan's $22.79 share-price close Thursday. L-3 is the New York producer of communication systems and aviation products and provider of support services. Titan is the San Diego provider of national-security-related information and communications products and services. The transaction is expected to close in the second half. It is subject to approval by holders of a majority of Titan's shares, settlement of certain lawsuits, and clearance by regulators. The acquisition is expected to add about $2.7 billion of sales and 25 cents a share of earnings to L-3's results in 2006. See full story.
Metro One Telecommunications (INFO: news, chart, profile) hired Credit Suisse First Boston to advise it on reviewing financial plans and "exploring avenues available to enhance shareholder value." The Portland, Ore. provider of directory-assistance and other services reported a wider first-quarter loss on 58% lower revenue in late April. Investor Kenneth D Peterson Jr., owner of 12.1% of the company, had previously said he'd meet with management to review a wide range of options.
Navarre Corp. (NAVR: news, chart, profile) said it plans to restate results for several reporting periods starting in 2004 to correct accounting related to certain benefits compensation for its chief executive. The Minneapolis-based company also said it expects a 2006 net income of between $18.2 million, or 58 cents a share, and $21.5 million, or 68 cents a share, on revenue of $710 million to $720 million. The company reported a fourth-quarter loss of $2.5 million, or 9 cents a share.
New Century Financial Corp. (NEW: news, chart, profile) said loan production volume for May rose 7% to $4.4 billion, compared with a year ago. Shares of the real-estate investment trust closed Thursday at $52.30.
Oil States International (OIS: news, chart, profile) said its Tubular Services unit, through a subsidiary of Sooner Inc. (SOON: news, chart, profile) has purchased Phillips Casing and Tubing for $31.4 million. The deal is expected to add 5 cents a share to 2005 earnings, Oil States said.
Plato Learning Inc. (TUTR: news, chart, profile) said that it narrowed its second-quarter loss to $3 million, or 13 cents a share, from $3.2 million, or 14 cents a share, a year ago. Adjusted net loss was $2.3 million, or 10 cents a share. Revenue slipped to $31.4 million from $32.3 million a year earlier, the Minneapolis-based company said.
Oil services group Schlumberger Ltd. (SLB: news, chart, profile) was upgraded to buy from hold at Citigroup Smith Barney, with the broker saying its mid-year exploration and production survey shows a significant acceleration in international spending versus earlier estimates. It is trading at a 10% discount to its historical median valuation, reducing the broker's primary hesistation which had been valuation.
Sears Holding Corp. (SHLD: news, chart, profile) said it could cost about $60 million by the time it is finished shuffling jobs and staff at Kmart. The entity created when Kmart Corp. bought Sears, Roebuck and Co. earlier this year said in a regulatory filing Thursday that the final cost will depend on who moves and who stays with the company. But at this point, Sears Holding is estimating that it will cost about $30 million to move an undisclosed number of people from Troy, Mich., to the Sears campus in Hoffman Estates, Ill. The other $30 million will pay for termination-related benefits. The company is estimating that the costs will be in cash. See full story.
Smithfield Foods (SFD: news, chart, profile) , the Smithfield, Va., pork and beef producer, reported fourth-quarter earnings fell 30% due to a year-earlier gain while revenue rose 16%. Net income for the quarter ended May 1 fell to $85.4 million, or 76 cents a share, from $122.7 million, or $1.09, in the year-earlier period. Excluding 46 cents of earnings from discontinued operations in the year-ago period, earnings from continuing operations were 76 cents against 63 cents. The consensus estimate of analysts surveyed by Thomson First Call was 73 cents. Sales climbed to $2.92 billion from $2.52 billion. The company added two million shares to its buyback program, bringing its total authorization to 2.9 million shares. In the quarter, "fresh pork margins were depressed by high raw material costs. The beef segment experienced a modest loss as industry conditions remained depressed," Smithfield said. Shares of the company fell $1.10, or 3.7 percent, on Thursday to $28.96.
Take-Two Interactive Software (TTWO: news, chart, profile) pared its quarterly loss by 44%, as the video-game publisher enjoyed strong demand for new titles like "Midnight Club 3: DUB Edition" and "Major League Baseball 2K5." But the company best known for the hot-selling "Grand Theft Auto" series also scaled back its revenue forecast for its fiscal third quarter. For the just-ended second quarter, Take-Two said it lost $8.2 million, or 12 cents a share, vs. a loss of $14.6 million, or 22 cents a share, in the comparable period a year ago. Revenue totaled $222.1 million, up 45% from $153.4 million a year ago. Analysts polled by Thomson First Call expected a loss of 13 cents a share on revenue of $209 million. See full story.
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Michael Baron is a reporter for MarketWatch in New York.
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Bebe Stores (BEBE: news, chart, profile) confirmed its three-for-two stock split, which becomes effective after the close of trading Friday, and said its board has approved an increase in its quarterly dividend to 4 cents a share from 2.2 cents a share. The higher dividend, which reflects the stock split, is payable on July 1 to shareholders of record on June 20. The Brisbane, Calif., retailer of women's apparel attributed the dividend increase to strong customer acceptance of its merchandise and a solid business performance. The shares closed Thursday at $42.57, up 9.3%.
BellSouth Corp. (BLS: news, chart, profile) said that its BellSouth Intellectual Property Marketing Corp. unit has entered into a license and settlement agreement with Comverse Inc., a unit of Comverse Technology Inc. (CMVT: news, chart, profile) . Under terms of the settlement, Comverse has taken non-exclusive patent licenses from the BellSouth unit for voicemail call return technology and a one-number call routing technology. The licenses are paid-up licenses, BellSouth said. Financial terms weren't disclosed.
Biogen Idec (BIIB: news, chart, profile) was downgraded to equal weight from overweight at Morgan Stanley, which feels its multiple sclerosis drug Avonex may face greater-than-expected risk given potential competition from Novartis drug. Analyst Steven Harr also cut his stock price target to $40 from $44. The stock fell 77 cents, or 2%, to $37.30 in Instinet pre-open trading. "We have viewed Avonex as a stable source of cash flows, without much growth, but if Novartis eventually launches FTY720, this drug will face serious pressure, negatively impacting out long-term growth assumptions and terminal growth rate," Harr said.
Blue Coat Systems Inc. (BCSI: news, chart, profile) said that its fourth-quarter earnings rose to $2.8 million, or 21 cents a share, from $1.4 million, or 11 cents a share, a year ago. Adjusted earnings were $2.3 million, or 17 cents a share. Revenue rose to $28.4 million from $21.1 million a year earlier. Analysts polled by Thomson First Call were looking for fourth-quarter earnings of 15 cents a share on revenue of $28 million. The company is expecting first-quarter earnings of 15 cents to 20 cents a share. Adjusted earnings are expected to be $2.3 million to $3.1 million, or 17 to 22 cents a share, the Sunnyvale, Calif.-based company said.
The Buckle Inc. (BKE: news, chart, profile) raised its quarterly dividend to by 3 cents, or 25%, to 15 cents a share. The new dividend will be paid July 27 to shareholders of record on July 15. The casual retailer's stock closed Thursday up $1.79 at $42.51.
Build A Bear Workshop Inc. (BBW: news, chart, profile) was downgraded to hold (high risk) from buy (high risk) by Citigroup Smith Barney, citing the shelving of a secondary offering because management believes "there is too much work to be done" and the fact that private-equity holders have begun to liquidate their positions. The broker also pointed to second-quarter sales, likely trending below expectations, and the possible departure of President and COO Barry Erdos.
Chartered Semiconductor Manufacturing (CHRT: news, chart, profile) now expects its second-quarter loss to come in at the low end of its prior forecast. Chartered in late April forecast a second-quarter loss ranging from $78 million to $88 million.
U.S.-listed shares of Cognos (COGN: news, chart, profile) slumped in pre-market after the Canadian software company warned revenue for the first quarter ending May 31 will be bewteen $198 million and $200 million, as it closed fewer larger transactions late in the quarter. To a lesser extent, the stronger U.S. dollar also weighed, it said. Cognos said it expects earnings to be between 21 and 23 cents a share. Analysts had expected an EPS of 25 cents on revenue of $207.5 million, according to Thomson First Call data.
Cree Inc. (CREE: news, chart, profile) plans to close the Sunnyvale, Calif. plant where it makes silicon radio frequency and microwave chips. The company said it plans instead to concentrate on wide bandgap radio-frequency and microwave products based on its silicon carbide and gallium nitride technology. The Cree Microwave Inc. subsidiary will accept final buy orders through June. It plans to wind down the operations of the business by December. See full story.
DDi Corp. (DDIC: news, chart, profile) entered into a standby purchase agreement with certain investors to sell up to $75 million of its common stock to support a $75 million rights offering. The company plans to use the net proceeds of both the private stock sale and the rights offering to make dividend payments on, repay, buy back or redeem a portion of the outstanding shares of its Series B preferred shares; to repay in full its senior accreting notes; and for working capital.
Kellwood Co. (KWD: news, chart, profile) reported first-quarter net earnings of $12.5 million, or 45 cents a share, down 50% from $25 million, or 90 cents a share, last year. Revenue fell 18% to $639.4 million from $686.1 million a year ago. Analysts surveyed by Thomson First Call were expecting first-quarter earnings of 44 cents a share on revenue of $644 million. The St. Louis-based apparel licenser forecast second-quarter earnings of $10.5 million, or 38 cents a share, on sales in the $570 million range. It forecast 2005 earnings of $68.5 million, or $2.38 a share, and full-year 2006 revenue in the $2.4 billion range.
Hollinger International (HLR: news, chart, profile) said that former chief executive Conrad Black and his wife, Barbara Amiel Black, have retired as directors, effective immediately.
Intel (INTC: news, chart, profile) may be in focus after both J.P. Morgan and UBS lifted their earnings and revenue forecasts for the world's biggest chip company.
L-3 Communications (LLL: news, chart, profile) agreed to acquire Titan Corp. (TTN: news, chart, profile) for $23.10 a share, or $1.97 billion, and to assume $680 million of Titan's debt. The price is a 1.3% premium to Titan's $22.79 share-price close Thursday. L-3 is the New York producer of communication systems and aviation products and provider of support services. Titan is the San Diego provider of national-security-related information and communications products and services. The transaction is expected to close in the second half. It is subject to approval by holders of a majority of Titan's shares, settlement of certain lawsuits, and clearance by regulators. The acquisition is expected to add about $2.7 billion of sales and 25 cents a share of earnings to L-3's results in 2006. See full story.
Metro One Telecommunications (INFO: news, chart, profile) hired Credit Suisse First Boston to advise it on reviewing financial plans and "exploring avenues available to enhance shareholder value." The Portland, Ore. provider of directory-assistance and other services reported a wider first-quarter loss on 58% lower revenue in late April. Investor Kenneth D Peterson Jr., owner of 12.1% of the company, had previously said he'd meet with management to review a wide range of options.
Navarre Corp. (NAVR: news, chart, profile) said it plans to restate results for several reporting periods starting in 2004 to correct accounting related to certain benefits compensation for its chief executive. The Minneapolis-based company also said it expects a 2006 net income of between $18.2 million, or 58 cents a share, and $21.5 million, or 68 cents a share, on revenue of $710 million to $720 million. The company reported a fourth-quarter loss of $2.5 million, or 9 cents a share.
New Century Financial Corp. (NEW: news, chart, profile) said loan production volume for May rose 7% to $4.4 billion, compared with a year ago. Shares of the real-estate investment trust closed Thursday at $52.30.
Oil States International (OIS: news, chart, profile) said its Tubular Services unit, through a subsidiary of Sooner Inc. (SOON: news, chart, profile) has purchased Phillips Casing and Tubing for $31.4 million. The deal is expected to add 5 cents a share to 2005 earnings, Oil States said.
Plato Learning Inc. (TUTR: news, chart, profile) said that it narrowed its second-quarter loss to $3 million, or 13 cents a share, from $3.2 million, or 14 cents a share, a year ago. Adjusted net loss was $2.3 million, or 10 cents a share. Revenue slipped to $31.4 million from $32.3 million a year earlier, the Minneapolis-based company said.
Oil services group Schlumberger Ltd. (SLB: news, chart, profile) was upgraded to buy from hold at Citigroup Smith Barney, with the broker saying its mid-year exploration and production survey shows a significant acceleration in international spending versus earlier estimates. It is trading at a 10% discount to its historical median valuation, reducing the broker's primary hesistation which had been valuation.
Sears Holding Corp. (SHLD: news, chart, profile) said it could cost about $60 million by the time it is finished shuffling jobs and staff at Kmart. The entity created when Kmart Corp. bought Sears, Roebuck and Co. earlier this year said in a regulatory filing Thursday that the final cost will depend on who moves and who stays with the company. But at this point, Sears Holding is estimating that it will cost about $30 million to move an undisclosed number of people from Troy, Mich., to the Sears campus in Hoffman Estates, Ill. The other $30 million will pay for termination-related benefits. The company is estimating that the costs will be in cash. See full story.
Smithfield Foods (SFD: news, chart, profile) , the Smithfield, Va., pork and beef producer, reported fourth-quarter earnings fell 30% due to a year-earlier gain while revenue rose 16%. Net income for the quarter ended May 1 fell to $85.4 million, or 76 cents a share, from $122.7 million, or $1.09, in the year-earlier period. Excluding 46 cents of earnings from discontinued operations in the year-ago period, earnings from continuing operations were 76 cents against 63 cents. The consensus estimate of analysts surveyed by Thomson First Call was 73 cents. Sales climbed to $2.92 billion from $2.52 billion. The company added two million shares to its buyback program, bringing its total authorization to 2.9 million shares. In the quarter, "fresh pork margins were depressed by high raw material costs. The beef segment experienced a modest loss as industry conditions remained depressed," Smithfield said. Shares of the company fell $1.10, or 3.7 percent, on Thursday to $28.96.
Take-Two Interactive Software (TTWO: news, chart, profile) pared its quarterly loss by 44%, as the video-game publisher enjoyed strong demand for new titles like "Midnight Club 3: DUB Edition" and "Major League Baseball 2K5." But the company best known for the hot-selling "Grand Theft Auto" series also scaled back its revenue forecast for its fiscal third quarter. For the just-ended second quarter, Take-Two said it lost $8.2 million, or 12 cents a share, vs. a loss of $14.6 million, or 22 cents a share, in the comparable period a year ago. Revenue totaled $222.1 million, up 45% from $153.4 million a year ago. Analysts polled by Thomson First Call expected a loss of 13 cents a share on revenue of $209 million. See full story.
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Michael Baron is a reporter for MarketWatch in New York.
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