Adaptive Broadband Shares Plummet on Earnings Warning

Adaptive Broadband (ADAP ) sees lower than expected $8 million Q2 revenue and gross margin the mid-30% range. The company cites a deferral of $13 million in contracted shipments of its AB-Access product to a major domestic customer.

Andrx Group (ADRX ) entered a memorandum of understanding with Genpharm confirming ADRX's status as first filer of abbreviated new drug application for a bioequivalent version of Prilosec. Banc of America reiterated its buy rating on the stock.

INTERSHOP Communications (ISHP ) lowered its Q4 loss estimate to 0.36-0.38 euro on 28 million to 30 million euro revenues. The company cites a global slowdown in IT purchasing patterns.

Robertson Stephens downgraded Network Appliance (NTAP ) shares to long term attractive from buy.

Morgan Stanley DW downgraded Proxim Inc (PROX ) shares to neutral from outperform.

Salomon SB downgraded (Macromedia Inc MACR ) shares to outperform from buy.

Lehman downgraded Brinker Intl (EAT ) shares to neutral from buy.

Walgreen Co. (WAG ) posted $0.15 vs. $0.13 Q1 EPS on a 16% sales rise.

DB Alex Brown downgrades Linens'n Things (LIN ) and Bed Bath & Beyond (BBBY ) shares to buy from strong buy.

AT&T (T ) reported that AT&T Broadband notifies customers, local franchising authorities that cable prices will begin increasing in a month by company-wide average of 4.8%.

IBP Inc. (IBP ) agreed to be acquired by Tyson Foods (TSN ) for $30 per share, with 50.1% of consideration in cash, rest in TSN Class A stock. The deal is valued at about $4.7 billion, including debt assumption. Smithfield Foods (SFD ) said on Friday it offered to acquired IBP for $32 per share in SFD stock, but received no response from IBP.

WebMD Corp. (HLTH ) and NEWS CORP. revise their partnership. HLTH will provide content across NWS properties for four years. NWS is no longer obliged to provide $300 million of international media services, $100 million of capital, any future capital to their international joint venture.

Benessee Corp., affiliates offer to acquire all Berlitz International (BTZ ) stock not currently owned for $12 per share cash.

Biovail Corp (BVF ) acquires from AVENTIS PHARMACEUTICAL all of North American rights for Cardizem family of cardiovascular products for $409.5 million.

GE reportedly to make Keynote Systems (KEYN ) Internet performance measurement services available to all GE businesses.

Western Multiplex (WMUX ) says due to adverse developments in ADAP's results, the company intends to evaluate all alternatives with respect to the proposed transaction.

Dain Rauscher downgraded Tumbleweed Communications (TMWD ) shares to neutral from strong buy.

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