In its 10-K, Talx Corp. (TALX) disclosed that the SEC is conducting an investigation into the company's August 2001 secondary offering, and its second quarter fiscal 2001 financial results.
Electronic Data Services (EDS) reported an accounting complexity related to its big outsourcing deals, according to The Wall Street Journal. Also, the company ended talks with Proctor & Gamble related to a potential outsourcing pact. S&P keeps its accumulate ranking.
3M (MMM) is higher. The company expects second quarter EPS from operations to be at least $1.33, above the current consensus of $1.25. 3M cited improved sales volumes, primarily in the Asia Pacific area.
Tripos (TRPS) shares fell after the company said it sees a $0.20-$0.25 second quarter loss (basic) on revenue of $10.5M-$11M. S&P downgraded to hold from buy. Tripos noted lower revenue in Discovery Software licensing, Software Consulting Services, and higher costs.
Alkermes (ALKS) shares fell sharply after Johnson & Johnson (JNJ) received a non-approvable letter from the FDA related to its New Drug Application for Risperdal Consta, a schizophrenia drug. Alkermes was to manufacture the drug using its Medisorb drug-delivery technology. USB Piper downgraded.
Dianon Systems (DIAN) says if the Department of Health & Human Services' proposed revisions to Medicare payment policies are adopted in their current form, the company expects a negative impact on 2003 EPS of about 10%. Wachovia says Dianon's 2003 EPS could fall by $0.40.
WorldCom (WCOME) stock resumed trading after being halted on June 26 following the news of its discovery of $3.85 billion in transfers from line cost expenses to capital accts that violated GAAP.
Janney Montgomery upgraded Harbor Florida Bancshares (HARB) to buy from hold on valuation.
Raytheon (RTN) expects to widen its $813M 2002 loss estimate for Massachusetts projects by 400M-$450M due to declining productivity. Raytheon reaffirmed $2.10-$2.20 2002 EPS from operations guidance.
Netegrity (NETE) sees a $0.24-$0.30 second quarter loss (pro forma) on $14.5M-$16.5M revenue, citing constrained IT spending.
JP Morgan downgraded Xilinx (XLNX) and Altera (ALTR) to market perform from long term buy.
Catapult Communication (CATT) sees lower than expected $0.10 third quarter EPS on $8M revenue. CIBC downgraded to hold from strong buy.
Pacific Growth also downgraded.
Merrill reportedly upgraded Comverse Technology (CMVT) to long term buy from neutral and keeps near term neutral.
Cree (CREE) announced that the Office of Naval Research has awarded Creee with two contracts for a total value of about $14.4 million.
McGrath Rentcorp (MGRC) says it has exercised its right to terminate a merger agreement between it and Tyco International (TYC).
TRW (TRW ) agreed to be acquired by Northrop Grumman (NOC) in a stock deal valued at about $7.8 billion, or $60 per TRW share.
Vivendi Universal (V) chairman and CEO Jean-Marie Messier agreed to resign from the beleagured company.
Digene (DIGE) says on June 30, it delivered to Cytyc (CYTC) a formal notice of its termination of the companies' Merger Agreement. Last week, the FTC informed the two companies of its intention to block the acquisition.
Idec Pharmaceutical (IDPH) says the European launch of zevalin by its partner Schering AG will be delayed due to certain technical compliance issues at its fill/finish provider.
Ericsson (ERICY) shares are trading sharply higher in Europe on rumors that the company is a takeover target. In response to the rumors, Ericsson's chairman says the company "has no negotiations regarding a takeover or other similar alliances, although no one can rule out such future scenarios."
GSI Commerce (GSIC) sees a worse than expected second quarter EBITDA loss of $3M-$4M on revenue of $32M-$34M; and sees a third quarter EBITDA loss of $5M-$6M. GSI noted higher costs, and the decision to remove estimated results of potential new partners from projections.
France Telecom (FTE) is sharply higher on rumors that the French government would be willing to renationalize the company. The government reportedly denied the rumors.