Verizon to Spend $18 Billion in Deploying Network

Bisys settles SEC investigation; Red Hat posts results; plus more stocks in the news Wednesday

From Standard & Poor's Equity Research

Verizon Communications (VZ) Verizon said it expects to invest $18.0 billion in net capital from 2004 through 2010 in deploying the nation's largest network.

Merck (MRK) says the federal jury in New Orleans ruled in its favor, rejecting a claim that VIOXX caused the 2003 heart attack of Kentucky man.

Foxhollow (FOXH) Says Merck will acquire a stake in the company with the purchase of $95 million in common stock. It also says Merck has committed to funding $100 million to the company under terms of an expanded collaboration agreement.

Red Hat (RHAT) posts $0.05 vs. $0.09 second quarter EPS (GAAP) despite a 52% revenue rise.

First Bancorp (FBP) Restates its 2000 through 2004 financial results after discovering problems with its accounting for mortgage- related securities. Notes restatement resulted in a $17 million decrease in its retained earnings and legal surplus.

Bisys Group (BSG) agrees with the SEC to settle investigation into past marketing arrangements with mutual fund advisers: the SEC acknowledges cooperation from Bisys Fund Services (BFS); BFS neither admits nor denies the findings of the order.

Fuller (H.B.)(FUL) posted 40 cents vs. 26 cents third quarter EPS on an 8.6% revenue rise. THe company sees EPS of 45 cents to 47 cents for the fourth quarter and $1.44-$1.46 for all of fiscal 2006. S&P maintains hold.

Lehman downgraded Career Education(CECO) to underweight from equal-weight. On Sept. 26, the company announced John Larson stepped down as president and CEO while remaining chairman.

Jabil Circuit (JBL) says fourth quarter unaudited net revenue rose 45% to $3 million. Says the trend to outsourcing continues to be robust, Jabil Circuit's position in the marketplace continues to rise. It sees first quarter revenue of $3.1 billion to $3.3 billion and expects fiscal year 2007 revenue growth of about 20%.

Boston Scientific (BSX) says 6-month results from its Below-The-Knee CHILL trial evaluating PolarCath Peripheral Dilatation System in patients with critical limb ischemia included a 93% freedom from amputation rate and a 97% procedural success rate.

Paychex (PAYX) posted $0.35 vs. $0.30 first quarter EPS on a 14% revenue rise. It sees 12% to 14% fiscal year 2007 revenue growth and a 13% to 15% rise in net income.

Due to higher-than-expected finance and accounting costs, equity compensation, bonus accruals expenses, and other non-recurring items, BearingPoint (BE) says 2006 GAAP operating income and cash guidance will be significantly below the low end of guidance. S&P downgrades to sell from hold. Needham downgrades to hold from buy.

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