Yahoo! Announces Earnings Shortfall, CEO Exit

Yahoo!(YHOO ) Chief Executive Tim Koogle will resign from the Internet media company. On a conference call after the close of trading Wednesday, Yahoo! also announced lower Q1 2000 revenue guidance in the $170M-$180M range and says it expects first quarter pro-forma EBITDA and net income to be approximately break-even. The company cites a weak advertising market and a shortfall in marketing spending due to an economic slowdown. The shares had been halted for virtually all of Wednesday's session.

Internap (INAP ) sees $27M Q1 revenues, and $160M 2001 revenues. Merrill, CS First Boston, and R.W. Baird downgrade.

With Worldcom's (WCOM ) stock hovering near its lowest point in recent history, investors and industry observers are buzzing about potential for a takeover, according to press reports. S&P maintains accumulate.

Banc of America downgraded C&D Technology (CHP ) to buy from strong buy. Tuesday the company posted $0.61 vs. $0.35 Q4 EPS.

SG Cowen sees a good buying opportunity in Microtune (TUNE ), and reiterates its strong buy. On Tuesday the company cut its +5% Q1 sequential revenue forecast to down 10%-20%.

Bear Stearns downgraded Commerce One (CMRC ) to attractive from buy.


(VVTV ) sees lower than expected $7M Q4 EBITDA on $107M in sales, and sees $20M fiscal 2001 EBITDA on $369M in sales. The firm cites a high level off from post-holiday returns and weaker than expected January sales.

Shell Oil offered to acquire Barrett Resources (BRR ) for $55 per share. According to one Wall Street analyst, Barrett's board will likely reject the offer. S&P maintains accumulate.

Newport Corp. (NEWP ) expects its recently acquired Kensington unit to contribute a higher than expected $0.17-$0.20 to 2001 EPS.

Lands' End (LE ) posted $1.07 vs. $0.92 Q4 EPS on a 12% revenue rise. The clothing retailer says fiscal 2002 sales will increase in the single digit range, and expects an increase in EPS of at least 20%.

Zale Corp. (ZLC ) sees mid-to-high single-digit comparable store sales decline in the second half of fiscal 2001, and sees $0.28-$0.38 second half EPS. Zale notes consumer spending is still tentative.

Dain Rauscher initiated coverage of Third Wave Tech (TWTI ) with buy. Lehman initiated coverage with strong buy.

Yahoo (YHOO ) stock was halted pending news.

Dow Jones (DJ ) sees $0.16-$0.20 1Q EPS, below expectations, on softer than anticipated ad revenues. Dow Jones expects WSJ per-issue linage to decline 25%-30% in 1Q, vs. 38.2% increase.

Purchasepro.Com (PPRO ) expects Q1 basic cash EPS to be in excess of $0.10 per share on more than $42 million in revenue.

Broadcom (BRCM ) sees $315M-$325M Q1 revenue and $0.08-$0.09 Q1 EPS (pro forma) on a customer order slowdown. The company says fixed accounting treatment of acquisitions may no longer be appropriate. Goldman Sachs, W.R. Hambrecht and Robertson Stephens downgraded the shares (See Word on the Street) .

JDS Uniphase (JDSU ) reportedly cut its Q3 EPS forecast to $0.14 from $0.17 and sees Q4 EPS matching or slightly exceeding Q3. W.R. Hambrecht maintains its buy rating. S&P downgraded (See Stock Picks & Pans ).

Jakks Pacific (JAKK ) posted better than expected $0.32 vs. $0.49 Q4 EPS on a 5.5% sales drop. Jakks sees $0.29-$0.31 Q1 EPS, $0.31-$0.37 Q2 EPS, and $1.61-$1.71 2001 EPS.

BindView (BVEW ) sees 2001 revenue growth toward the lower end of the 20%-40% range; the company expects a loss of $0.07 in Q1, and to turn profitable in Q3. Robertson Stephens downgraded the shares (See Word on the Street ).

Due to a severe economic downturn, CTS Corp. (CTS ) sees $0.04-$0.08 Q1 EPS on a 7%-12% revenue decline.

JDN Realty (JDN ) will delay reporting Q4 and full-year 2000 results. The company says it needs to review income tax implications of asset impairments that its REIT unit JDN Development Co. is planning to take in Q4.

Bear Stearns (BSC ) reportedly says it might not meet Q1 EPS estimates. The company will lay off 400 people.

Trading in Extended Systems (XTND ) was halted Mar. 6. Palm Inc. (PALM ) agreed to acquire the company for $22 per share in Palm stock, subject to a collar.

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