Bad Tidings for Big Tech Names
Cisco Systems (CSCO ) will reportedly cut its workforce. S&P says, contrary to wire reports, the company hasn't announced layoffs. But S&P downgraded its opinion on heightened risks for lengthening of the tech downturn and its spread to regions outside the U.S.
Ameritrade (AMTD ) says 39,000 new accounts were opened in February. Pacific Crest says new accounts are lower than expected and would avoid online brokerage stocks.
i2 Technologies (ITWO ) agreed to acquire privately- held RightWorks, a provider of e-procurement and e-commerce solutions, for 5.3M i2 shares. S&P maintains hold.
Teradyne (TER ) cut its previous 20% Q1 sequential revenue decline forecast to a 35% decline. JP Morgan cut estimates. SG Cowen plans to cut estimates. S&P maintains avoid.
U.S. Airways' (U ) shares are seen lower on reports that continued antitrust scrutiny, and intensifying congressional and union opposition to the United/U.S. Airways deal have some concerned that the acquisition may not go through as smoothly as the airlines had hoped.
Barr Labs (BRL ) says it's reviewing the contents of a letter from the FDA regarding the appropriate application of Pediatric and Generic Exclusivity on Prozac. Barr says the assertions in the letter are legally flawed.
Intel Corp. (INTC ) sys Q1 revenue will be about 25% below Q4's $8.7 billion. Intel plans to reduce workforce by 5,000. S&P downgraded. Prudential reportedly downgraded. USB Piper cuts estimates.
Lehman reportedly downgraded Commerce One (CMRC ) to market perform from buy. The firm also reportedly downgraded PurchasePro.com (PPRO ) and Ariba (ARBA ).
Goldman says Intel's preannouncement will likely raise questions about the strength of Microsoft's (MSFT ) Q3.
Robertson Stephens says given Compaq's (CPQ ) exposure to the Intel-based server market, the firm cut its $1.15 2001 EPS estimate to $1.00, and its $1.35 2002 estimate to $1.25.
Barrett Resources (BRR ) rejected Shell Oil Co.'s unsolicited proposal to acquire the company but will seek alternatives to maximize shareholder value.
USFreightways (USFC ) says that due to the economic slowdown and extreme weather it expects Q1 EPS to be very substantially below the current consensus estimate. S&P maintains hold.
Lehman made negative comments on eBay (EBAY ), saying investors should stay on the sidelines.
Prudential downgraded DaimlerChrysler (DCX ) to sell.
RF Micro Devices (RFMD ) reduced its Q4 revenue guidance to $55M from about $72M.
Due to increased weakness in the telecommunications systems market in North America, Transwitch Corp. (TXCC ) expects Q1and Q2 revenue to be sequentially flat and sees $0.16-$0.17 Q1 EPS.
Intersil Holding (ISIL ) sees $0.05 Q1 EPS (adjusted) on revenue, excluding sales from its Discrete Power products, about 25% lower than Q4. The firm set a $50M stock buyback.
Dean Foods (DF ) sees lower than expected $0.45-$0.47 Q3 EPS and $2.50-$2.55 fiscal 2001. Dean says it is working with Goldman Sachs to explore strategic financial alternatives.
Silicon Labs (SLAB ) sees a $0.03-$0.05 Q1 loss from operations on $13M-$15M in revenue, below previous guidance.
Merrill reportedly downgraded Motorola (MOT )
Vascular Solutions (VASC ) sees $3.1M-$3.4M Q1 revenue, representing 20% sequential growth and expects gross margins of slightly over 60%, with a net loss of $0.17-$0.20.
AnnTaylor Stores (ANN ) posted $0.18 vs. $0.50 Q4 EPS from operations on 4.3% same store sales decline.