NetScout Loses Software Deal with Cisco

Digitas reduces guidance; with fewer customers, Morton's Restaurant sees a loss; plus other stocks in the news

NetScout Systems (NTCT ) will offer its nGenius Probes direct or through channel partners to Cicso customers; Cisco will no longer resell them under Cisco SwitchProbe private label. Bear Stearns downgraded.

J.P. Morgan upgraded Varian Medical (VAR ) to buy from long-term buy, and raised the $74 target to $76. J.P. Morgan says Tuesday's sell-off creates good entry point.

Josephthal downgraded Scientific-Atlantic (SFA ) to buy from strong buy.

Research showed first evidence of Novogen 's ( NVGN ) phenoxodiol, the anti-cancer drug currently being tested on humans, attacks a key part of cancer cells.

Digitas Inc. (DTAS ) says Q2 guidance is below previous expectations and sees a $0.06--$0.08 Q2 pro-forma loss (before a restructuring charge). Janney Montgomery downgraded to hold from accumulate.

Chippac ( CHPC ) sees Q2 revenues flat to down 5% from vs. earlier guidance of down 5%-10%. Chippac expects a Q2 loss to be at the low end of earlier range, in line with the current First Call $0.11 loss estimate.

Morgan Stanley initiated coverage of Waters Corp. (WAT ) with outperform.

Due to the continuing impact of the troubed economy and unfavorable biz conditions and travel business, Morton's Restaurant (MRG ) reduced expects to report a Q2 loss.

Merrill reiterates near-term and long-term buy on Brocade Communications (BRCD ).

Bausch & Lomb ( BOL ) says Q2 EPS will be significantly lower than previous $0.55-$0.57 guidance, citing lower revenues in lens business and soft cap equipment demand.

S&P initiated coverage of Kraft Foods (KFT ) with hold.

CMGI Inc. (CMGI ) posted a $131.7M Q3 loss (excluding charges) vs.a $191.5M loss on 29% revenue rise amd sees $120M-$130M Q4 consolidated recurring operating loss on $280M-$290M revenues. Adams Harkness downgraded to market perform from buy.

Due to ongoing sluggish consumer demand, Tropical Sports (TSIC ) sees about $105M Q3 sales, $440M for fiscal 2001 (Sept.); and about $1.7M Q3 income from operations, and $14M from operations in fiscal 2001.

Polaroid (PRD ) set a restructure; the company expects to take $150M-$175M in charges, and reduce and reconfigure its global operations. As a result, Polaroid will cut the global workforce by 25%.

DB Alex Brown downgraded Factset Research ( FDS ) to market perform from buy. On Tuesday the company posted $0.25 Q3 EPS and forecast fiscal 2001 EPS to slightly exceed consensus estimate of $0.96.

Eli Lilly ( LLY ) FDA extended the action date for the completion of its review of BLA for drotrecogin alfa for sepsis from July 27 to October 27. Eli Lilly maintains its second-half launch target and reaffirmed $0.73-$0.75 Q2 EPS guidance.

Maytag (MYG ) expects Q2 EPS to be about 25% lower than previous $0.43 guidance, citing significant softening in retail sales of floor care products, and overall industry softening.

S&P lowered Lucent Technologies' (LU ) corporate credit rating to double-'B'-plus from triple-'B'-minus, and removed it from CreditWatch.

Avaya Inc. ( AV ) sees ongoing revenues declining 4%-6% in Q3, with EPS doubling those reported in the year ago quarter, Q4 revenues declining 4%-8%, and the EPS to increase "six-fold" over a year ago. Avaya will eliminate 3,000 jobs and accelerate a restructure.

Microtest ( MTST ) agreed to be acquired by Danaher Corp. in a $74M deal. Terms: $8.15 cash for each MTST share. Knight Transport (KNGT ) expects to report Q2 EPS within $0.20-$0.23 consensus range.

Papa John's ( PZZA ) confirmed previously issued $0.46-$0.53 Q2 EPS guidance.

Wallace ( WCS ) posted $0.34 vs. $0.27 Q3 EPS from operations on slightly higher revenues.

Geron Corp. (GERN ) gets a patent for embryonic germ cells; notes the patent is licensed exclusively to Geron from John Hopkins University.

Staar Surgical (STAA ) voluntarily initiated a recall of all Model CQ-2005V three-piece Collamer intraocular lenses used in cataract procedures due to a potential packaging problem.

Before it's here, it's on the Bloomberg Terminal.