Ditech Tumbles on Sharp Profit Drop

CS First Boston lifts Marine Drilling rating to strong buy; DB Alex. Brown downgrades Sanmina; plus other stocks in the news

Ditech Communication (DITC ) posted $0.01 vs. $0.54 Q4 EPS on 58% revenue decline and expects revenues for Q1 and Q2 will decline from the current quarter. Robertson Stephens and DB Alex. Brown downgraded to market perform.

CS First Boston upgraded Marine Drilling (MRL ) to strong buy from buy. Thursday the company agreed to merge with Pride International (PDE .

Friedman Billings downgraded Genome Therapy (GENE ) to market perform from accumulate.

Wedbush Morgan upgraded Capstone Turbine (CPST ) to strong buy from buy.

Inet Technology (INTI ) says major business trends thus far in Q2 resemble those of Q1, and says the actual value of revenues could vary by as much as 20%.

Vishay Intertechnology (VSH ) will begin offering to exchange 1.5M of its shares for all Siliconix shares (holds 80.4% stake) it does not currently own.

DB Alex Brown upgraded TiVo Inc. (TIVO ) to market perform from under perform.

DB Alex Brown downgraded Sanmina Corp. (SANM ) to market perform from buy.

Banc of America upgraded Semtech Corp. (SMTC ) to buy from market perform, and set a $35 12-18 month target.

Prudential upgraded KLA-Tencor (KLAC ), Applied Materials (AMAT ) and Teradyne (TER ) to strong buy from accumulate.

ADC Telecom (ADCT ) posted a $0.15 Q2 loss vs. $0.10 EPS on a 25% sales decline. ADC sees Q3 sales of $600M-$650M and breakeven-$0.05 loss and will cut its workforce. Morgan Stanley downgraded to neutral. Lehman, S&P and CS First Boston cut estimates.

PictureTel Corp. (PCTL ) agreed to be acquired by Polycom (PLCM ) for a total of about about 6.7M Polycom shares and $176M cash: Terms: 0.1177 Polycom share, and $3.11 cash per PictureTelshare.

Borders Group (BGP ) posted $0.01 vs. $0.01 Q1 EPS from operations despite a 7. 4% sales rise, and sees a $0.01 Q2 loss with $1.38-$1.40 fiscal 2002 EPS.

Scios Inc. 's (SCIO ) stock is being halted Friday due to an FDA review of the company' New Drug Application for congestive heart failure.

The potential Alcatel (ALA ) stock-swap acquisition of Lucent is raising concern that U. S. investors will dump the stock once Alcatel closes the deal, according to a Wall Street Journal story.