After a Loss, Ericsson Hangs Up on Phone-Making
Ericsson (ERICY ) posted a loss of 1.5 billion Swedish Kroners from operations vs. SEK 8.7 billion profit despite an 11% sales rise. The third-largest mobile phone maker says it will outsource the supply and production of its mobile phones. Ericsson sees 15%-20% 2001 sales growth, and a 6%-8% operating margin.
JDS Uniphase (JDSU ) posted $0.21 vs. $0.09 Q2 EPS (pro forma) on a sharp sales rise. The fiber-optic company lowered its Q3 sales growth estimate to 7%-10% sequentially, and sees a close to flat Q3 sequential EPS.
Pfizer (PFE ) restricted the use of its drug Capravirine for some patients in trials based on the results of a 12-month animal toxicology study, which demonstrated an unexpected finding of vasculitis.
Qualcomm, Inc. (QCOM ) posted $0.29 vs. $0.27 Q1 EPS (pro forma) as widened gross margin offset a 10% revenue decline. The company, which makes chip sets and licenses wireless patents, says it is comfortable with a $0.29 Q2 EPS (pro forma) consensus estimate.
Broadvision (BVSN ) posted $0.02 vs. $0.03 Q4 EPS from operations (pro forma) as higher expenses offset sharply higher revenues. CS First Boston cut Broadvision's rating. Bank of America downgraded the company to buy from strong buy. S&P maintained its hold.
Network Associates (NETA ) posted $0.87 Q4 loss vs. $0.24 EPS (pro forma) on lower than expected $46.7 million in revenue. S&P put the company's estimates under review.
Broadcom (BCOM ) Robertson Stephens downgraded the company to long-term attractive, following PMC-Sierra's announcement of weakening industry fundamentals.
PMC-Sierra (PMCS ) posted $0.34 vs. $0.11 4Q EPS (pro forma) on a sharp revenue rise. The company expects Q1 revenues to fall 25% vs. 4Q. S&P, CS First Boston and Robertson Stephens downgraded PMC's rating. UBS Warburg reportedly did the same.
Speechworks (SPWX ) posted a wider than expected $0.27 Q4 loss vs. $1.28 loss on a sharp revenue rise.
AMC Entertainment (AEN ) plans to close about 300 screens at a rate of 70 to 80 per year for the next four years. Goldman Sachs upgraded the motion-picture theatre group to market perform.
At Home (ATHM ) posted a $0.09 Q4 loss from operations vs. breakeven despite a 31% revenue rise. The Internet company sees a $6 million-$10 million Q1 restructure charge, and a $0.13-$0.14 Q1 loss from operations.
Staples, Inc. (SPLS ) sees lower than expected Q4 computer store sales of 3%, and sees EPS from operations of $0.19-$0.21.
Starbucks (SBUX ) posted $0.25 vs. $0.18 Q1 EPS on 10% higher same store and sales, 26% higher total sales.
Schering-Plough (SGP ) got an "approvable" letter from the FDA for its non-sedating antihistamine Desloratadine on Jan. 19. S&P noted the product is subject to final FDA approval.
Liz Claiborne (LIZ ) set an additional $150 million stock buyback.
UBS Warburg cut its estimates on Cisco Systems (CSCO ). Salomon Smith Barney believes Cisco's model is intact.
Sapient Corp. (SAPE ) posted $0.10 vs. $0.08 Q4 EPS (pro forma) on 70% higher revenues. Bear Stearns and CS First Boston cut their estimates.