Cisco Beats Estimates

Action Performance skids after reporting lower earnings; IBM acquires Gluecode Software; plus more of Tuesday's stocks in the news

Cisco (CSCO ) posted 23 cents third-quarter earnings per share excluding special items, vs. 19 cents a year ago, on $6.2 billion in revenue. Sales were up 10% and beat analysts' estimates. Wall Street analysts were expecting the company to post a profit of 22 cents per share on sales of $6.16 billion, according to Thomson Financial.

Fossil (FOSL ) posted first-quarter earnings per share of 32 cents, (including a tax benefit), vs. 22 cents a year ago, on a 17% sales rise. The company notes March sales slowed markedly in certain Euro markets. It sees 14 cents second-quarter earnings per share and cuts his $1.53 to $1.57 2005 earnings per share estimate to $1.48. S&P reiterates buy.

Action Performance (ATN ) reported a second-quarter loss of 16 cents per share, vs. 7 cents EPS a year ago, on a 9.9% sales drop. The company sees third-quarter revenue sequentially higher, but below a year ago, and wholesale sales of die cast to be down year-over-year. It suspended its 5-cents quarterly dividend.

Vertex Pharmaceuticals (VRTX ) says interim results show investigational oral hepatitis C virus protease inhibitor VX-950 was well- tolerated and demonstrated potent antiviral activity in a Phase Ib clinical trial. S&P raised its price target by $2 to $14.

Priceline.com (PCLN ) posted 10 cents, vs. 11 cents a year ago, first-quarter earnings per share as non-cash amortization expenses associated with acquisitions offset a 4.1% revenue rise. The company sees 25 cents to 31 cents second-quarter GAAP earnings per share. Piper Jaffray reportedly downgrades to market perform.

Delta Air Lines (DAL ) Form 10-Q says the airline will record a substantial net loss for the 9 months ending Dec. 2005, and that cash flows from operations will not be sufficient to meet all of its liquidity needs for that period. S&P reiterates sell.

Great Atlantic & Pacific Tea (GAP ) posted a 15-cent fourth-quarter loss per share, vs. a $1.56 loss a year ago, as management of expenses and liquidity offset a 5.9% revenue decline. The company announced a restructuring, including exploring the potential sale of A&P Canada and the divestiture of Farmer Jack and Food Basics operations.

7-Eleven (SE ) posted 5.7% higher U.S. same-store merchandise sales and 12% higher total sales.

Investigators probing American International Group (AIG ) said they believe knowledge of, and participation in questionable accounting extends beyond two of the company's former senior executives, according to the Wall Street Journal.

Boeing (BA ) and GE Commercial Aviation Services (GECAS) confirm an order for six Boeing Next-Generation 737-700s valued at about $330 million at list prices. GECAS will lease these airplanes to Sky Europe, based in Slovakia.

International Business Machines (IBM ) acquired privately-held Gluecode Software, a provider of software and support services for open source application infrastructure software. Terms were not disclosed.

Bristol-Myers Squibb (BMY ) filed a 10-Q that revises certain financial info relating to additional litigation reserves recorded after its first-quarter results. Pre-tax earnings were reduced by $110 million, reflecting litigation reserves.

General Motors (GM ) maintained its 50 cents second-quarter dividend.

Saks (SKS ) completed a previously announced internal investigation by an audit committee. It concluded that during its 1999 to 2003 fiscal years, total markdown allowances improperly collected from vendors was about $20 million.

Inamed (IMDC ) posted 38 cents, vs. 49 cents a year ago, first-quarter GAAP earnings per share as 14 cents per share of expenses relating to pending merger with Medicis Pharmaceutical (MRX ) offset a 16% sales rise. S&P reiterated buy.

Audible (ADBL ) posted 3 cents first-quarter earnings per share, vs. a 56-cent loss a year ago, on a 91% revenue rise. The company raised its $59 million to $62 million 2005 revenue guidance to $62 million to $65 million.

Domino's Pizza (DPZ ) posted 35 cents, vs. 28 cents first-quarter earnings per share (pro forma) on an 11% higher domestic same-store sales, and 14% higher global retail sales.

PDI Inc. (PDII ) posted a breakeven first-quarter, vs. 40 cents, earnings per share on a 12% revenue decline.

Semiconductor testing service ASE Test Ltd. (ASTSF ) posted 26% lower April revenue.

World Fuel Service (INT ) is to be added to the S&P SmallCap 600 after the close of trading on a date to be announced, replacing Patina Oil & Gas Corp., which is being acquired.

Progenics Pharmaceuticals (PGNX ) posted a 76-cent first-quarter loss, vs. a 61-cent loss, despite a 53% revenue rise.

Nuance Communications (NUAN ) agreed to be acquired by ScanSoft (SSFT ) in a $221 million deal. Terms of the agreement give 0.77 ScanSoft share and $2.20 cash for each Nuance share. Nuance posted a 13-cent first-quarter loss, vs. a 7-cent loss on a 7.1% revenue drop.

Goodrich Petroleum (GDP ) posted a 30-cent first-quarter loss, vs. 10 cents earnings per share, from continuing operations as an unrealized loss on derivatives related to gas hedges offset a 22% total revenue rise.

Intermune (ITMN ) is in a preliminary deal to settle its shareholder class action lawsuit and its shareholder class is to receive $10.4 million. The company says it will include about $2 million of selling, general, and administrative expense in first-quarter results to reflect the potential cost of this legal action.

NTL (NTLI ) posted a $1.36 first-quarter loss, vs. a $1.60 loss, on a 3.5% revenue rise.

Midway Games (MWY ) posted a 19-cent first-quarter loss, vs. a 27-cent loss, despite a 31% revenue drop. The company sees $40 million second-quarter revenues with a net loss of $25 million. It sees $225 million 2005 revenue and a $47 million net loss.

Internet survey company Greenfield Online (SRVY ) posted 11 cents, vs. a penny, first-quarter earnings per share on a 77% revenue rise. It sees $3.4 million to $4.0 million second-quarter operating income on $25 million to $26.5 million revenue. The company raised 2005 guidance to $102 million to $108 million revenue, with operating margin of 20% to 21%.

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