Overture Drops after Losing AOL Deal

Peregrine delays earnings data; Nationwide Financial advances; plus more of today's stocks in the news

Overture Services (OVER ) says its U.S. search distribution relationship with AOL has ended. Merrill reportedly downgraded.

Peregrine Systems (PRGN ) delayed Q4 EPS release pending continued audit activities by KPMG, and notes it engaged KPMG earlier this month to replace Arthur Andersen LLP. S&P reiterates accumulate.

Nationwide Financial (NFS ) posted $0.84 vs. $0.89 Q1 operating EPS despite 4% higher total sales, and sees $3.35-$3.50 2002 operating EPS if markets and related performance of account assests achieve 0%-8% return. Merrill upgraded.

Sun Microsystems announced its presidenct and COO Ed Zander plans to retire on July 1. Chairman and CEO McNealy will add the president title. Bear Stearns downgraded. S&P keeps buy.

Agile Software (AGIL ) sees a $0.23-$0.26 Q4 loss (pro forma), and a $0.55-$0.58 fiscal 2002 loss, citing the very weak industry conditions. The company will cut its workforce by 15%. RW Baird downgraded.

Goldman removed Rayonier (RYN ) from its recommended list, and now rates market outperform

Channell Commercial (CHNL ) posted $0.05 Q1 EPS vs. a $0.14 loss despite a 9.7% revenue drop. HC Wainwright downgraded to buy from strong buy.

CS First Boston upgraded Rock-Tennessee (RKT ) to buy from hold.

Gilead Science (GILD ) posted a $0.02 Q1 loss vs. a $0.11 loss on a 35% revenue rise. Pacific Growth upgraded to strong buy.

Comcast (CMCSK ) posted 27% higher Q1 consolidated operating cash flow on a 20% revenue rise.

RR Donnelley (DNY ) posted $0.08 vs. $0.23 Q1 EPS from ops on 16% lower revenue. Anticipating continued weak conditions, RR Donnelley expects $1.50-%1.65 2002 EPS from operations.

Kenneth Cole (KCP ) posted $0.27 vs. $0.21 Q1 EPS as higher gross margin and lower expenses offset a 5.4% sales drop. The retailer raised the $0.14-$0.16 Q2 EPS guidance to $0.20-$0.22, $1.02-$1.04 2002 to $1.12-$1.18.

Adobe (ADBE ) says with more than 4 weeks remaining in Q2, it believes it will achieve its previous $305-$325 million revenue and $0.24-$0.27 pro forma EPS guidance.

Oxford Health (OHP ) posted $0.78 vs. $0.65 Q1 EPS on an 8.4% revenue rise. The company sees about 4% growth in 2002 net fully insured commercial enrollment, excluding the recent MedSpan acquisition.

Conseco (CNC ) reported $0.12 vs. $0.23 Q1 operating EPS (pre-goodwill) on a 26% revenue drop. The company maintains its $0.60-$0.70 2002 EPS guidance.

Banc of America initiated coverage of Microsoft (MSFT ) with a buy rating and a $63 price target.

Bottomline Technologies (EPAY ) posted a $0.04 Q3 loss per share vs. a $0.31 loss (pro forma) on 6.1% lower revenues. The company plans to enter the legal electronic billing market through purchase of key assets of eVelocity. CSFB cut its estimates, citing the company's Q1 revenue shortfall.

Credence Systems (CMOS ) sees better than expected Q2 results, with revenues 10% higher than Q1. It does not expect any significant cancellations in the quarter and sees its book-to-bill ratio above one.

Newell Rubbermaid (NWL ) reported $0.24 vs. $0.18 Q1 EPS from operations despite flat revenues. It reiterated its its guidance for $0.34-$0.39 Q2 EPS and $1.48-$1.58 2002 operating EPS.

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