Celeritek Inc (CLTK ) says gross margin decreased from 29% in Q2 to 24% in Q3 and expects a similar level in Q4. Prudential downgraded the stock to hold.

Coach Inc (COH ) sees Q2 EPS in excess of $0.85 vs. previous guidance of $0.77-$0.80. Cites double-digit sales growth, stable pricing policy, increased operating leverage.

Fritz Cos (FRTZ ) agrees to be acquired by UPS for approximately $450M in UPS Class B stock. Terms: 0.2 UPS Class B per FRTZ share.

A.C. Moore (ACMR ) sees $0.04-$0.05 1Q loss due to higher interest costs, increased pre-opening expenses. The company also sees $1.08- $1.10 '01 EPS.

CIBC World downgraded Cisco Systems (CSCO ) shares to hold from buy and says the stock is worth $25-$35 today.

Wit SoundView downgraded QUALCOMM (QCOM ) shares to hold from buy.

Universal Health Services > (UHS ) to make a presentation at the JP Morgan H&Q Healthcare Conference today. Lehman reiterated its buy and top pick opinion on the stock.

BEA Systems (BEAS ) entered a three-year enterprise license deal with SCH to use Java-based BEA WebLogic Server as platform to build and deploy mission critical applications.

Dain Rauscher reiterated its strong buy rating on XO Communications (XOXO ) shares.

Varian Semiconductor (VSEA ) expects annual revenue growth to be in line with the industry's growth estimate of about 10% year-over-year and net income to grow by 15%-25%. The company sees $223 million to $228 million Q1 revenue.

Nautica Enterprises (NAUT ) posted $0.50 vs. $0.48 Q3 EPS on a 5% sales rise. The company says it is comfortable with Q4 consensus estimate.

Helen of Troy (HELE ) posted $0.28 vs. $0.20 Q3 EPS on a 33% sales rise. The company says it sees 10%-15% Q4 sales growth, though retail softness could put downward pressure on the estimate.

Ceridian Corp. (CEN ) expects to meet its $1.01 2000 EPS estimate ($0.70 pro forma). However, the company sees $0.65-$0.70 2001 EPS due to a lower than expected revenue run rate and plans for additional investments in sales.

Applied Science (ASTX ) sees $0.18-$0.20 vs. $0.26 Q2 EPS on $45M-$47M in sales. The company cites changes in its product mix, manufacturing inefficiencies, and higher costs.

Bob Evans Farms (BOBE ) sees Q3 EPS approximately equal to the $0.33 of a year ago, assuming sales comparisons improve in January. The company notes the impact of severe weather on restaurant sales.

Isle of Capri (ISLE ) sees Q3 EPS substantially below the $0.19-$0.20 consensus estimate, perhaps in the breakeven range. ISLE cites severe weather in most of its markets.

Corn Products (CPO ) sees $1.70 vs. $2.06 2000 EPS from operations. The company cites the adverse impact of worldwide high energy costs, particularly natural gas.

AMR Corp. (AMR ) will buy Trans World Airlines (TWA ) for $500M cash. AMR is also in a joint venture with UAL CORP. to provide shuttle service in the Northeast. AMR will get up to 86 planes in a $1.5B deal. AMR will also buy a 49% stake in DC Air for $82M.

Veeco Instruments (VECO ) says its Q4 orders were about $184M, higher than previous $150M guidance.

Genzyme General Div. (GENZ ) posted 17% higher Q4 revenues and 16% higher total revenues. The company sees 2001 revenues increasing more than 18% over 2000 levels.

Emmis Communications (EMMS ) posted $0.20 vs. $0.04 Q3 EPS, $0.62 vs. $0.52 Q3 after tax cash flow, and 52% higher broadcast cash flow, on a 57% revenue rise.

Applied Innovations (AINN ) expects Q4 net income to increase by more than 25% over year ago level on sales of over $50M. AINN believes growth in higher margin products will mitigate the impact of a slowdown in integration services.

Robertson Stephens believes Redback Networks (RBAK ) is poised to report a strong Q4 next week; the firm upgraded its rating on Redback to strong buy.

AML Res Prop (AML ) sees lower than expected $0.68 Q4 and $2.75 2000 funds from operations. The company cites weakness in the general economy.

Cleveland-Cliffs (CLF ) cut its quarterly dividend by 97%. The company sees 2001 profits impacted by its plans to reduce production and inventory levels.

New England Business (NEB ) sees $0.65-$0.66 Q2 EPS on about a 13% sales rise, at the low end of expectations. The company now sees $2.20-$2.25 fiscal 2001 EPS on 17%-19% higher sales, below previous guidance.

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