International Rectifier Sees Sharp Revenue Drop

Northwest Airlines drops proposal to buy the rest of Mesaba; Microchip Tehnology sales are on track; plus other stocks in the news

International Rectifier (IRF ) expects Q4 revenue to be down about 30%-35% sequentially, and expects Q1 fiscal 2002 to be flat with Q4. S&P and Gruntal downgraded their rating.

Microchip Technology (MCHP ) says it is tracking well towards earlier guidance for $138M Q1 sales. S&P and Banc of America upgraded.

CS First Boston downgraded CVS Corp. (CVS ) to hold from strong buy.

Northwest Airlines confirmed that it has withdrawn its proposal to acquire the remaining shares of Mesaba Holdings (MAIR ) it does not already own.

Bear Stearns and Merrill downgraded Interpublic Group (IPG ). S&P maintains hold.

Forward Air (FWRD ) sees $0.21-$0.25 Q2 EPS vs. a year ago's $0.28, citing the weak economy, higher insurance costs, and an increased rate of customer failures.

Aremissoft Corp. (AREM ) stock has been halted pending news. Prior to the halt, the company said it discontinued plans to invest in LK The $109M it was to invest may be used to "substantially" increase its buyback program.

CS First Boston downgraded Lucent Technology (LU ) to hold from buy. On Thursday The Wall Street Journal reported that Lucent's plan to sell two manufacturing plants has fallen through.

Salomon upgraded Riverstone Network (RSTN ) to buy from outperform.

Andrew Corp. (ANDW ) sees $0.12-$0.15 Q3 EPS vs. previous estimate of $0.21-$0.25, and sees $235M-$240M Q3 revenues vs. $260M-$270M. S&P maintains hold.

Quanta (Quanta ) (PWR ) sees $0.35-$0.38 Q2 EPS, and $1.73-$1.77 2001 EPS, citing greater-than-expected contract delays, cancellations and reduced margins. S&P keeps buy. First Union downgraded.

USB Piper reportedly initiated coverage of Harvard Bioscience (HBIO ) with strong buy.

Nortel Networks (NT ) sees a $0.48 Q2 loss from operations on $4.5B revenues and sees a $19.2B Q2 net loss including charges from discontinuation of access solutions operations, layoffs, plant closures, and a write down of intangibles. Nortel will discontinue its dividend payout. AG Edwards downgraded and CS Frist Boston cut estimates.

Goodyear Tire (GT ) tripled production of radial aircraft tires at its Danville, Va. plant due to increased worldwide demand.

General Semiconductor (SEM ) sees about $0.01-$0.03 Q2 EPS on 15%-17% revenue decline, citing a continued weakness in demand from most of its end markets.

Tribune Co. (TRB ) cut Q2 EPS from operations guidance to $0.22. The company says revenues and newspaper advertising volume for the period ended May 27 were $432M, down 10% from year ago. S&P maintains hold.

Diamondcluster (DTPI ) sees $0.02 Q1 EPS from operations on $57M-$60M revenues, citing continued weak demand in North America and Europe.

Circuit City (CC ) posted $0.05 vs. $0.28 Q1 EPS on a 13% sales decline.

Microsoft (MSFT ) shares are lower in pre-market trading on rumors Microsoft will report a profit warning. Microsoft reportedly denies any such news forthcoming.

JDS Uniphase (JDSU ) sees Q4 sales of about $600M vs. previous guidance of $700M, and sees a $0.06-$0.08 Q4 loss, including inventory write-downs. JDS expects $450M Q1 fiscal 2002 sales. S&P downgraded to avoid. Dain Rauscher and CS First Boston also downgraded.

United Microelectronic (UMC ) sees about 35% Q2 sequential revenue decline and an operating loss due to weaker than expected market environment and a slow economic recovery. The company says Q3 visibility remains extremely low.

Adobe Systems (ADBE ) posted $0.34 (pro forma) vs. $0.26 Q2 EPS on 15% revenue rise. Adobe expects flat Q3 revenues. UBS Warburg upgraded and CS First Boston cut estimates.

Charles River Labs (CRL ) raised Q2 EPS guidance to $0.21-$0.22 on sales that should slightly exceed the high end of the company's earlier guidance of $110M-$114M.

Dendrite (DRTE ) expects a $0.05 Q2 loss from operations on flat revenue and sees $0.30-$0.45 2001 EPS from operations on revenue growth of 5%-12%.

Net2phone Inc. (NTOP ) posted a $0.41 Q3 loss from continuing operations vs. a $0.21 loss as higher costs offset sharp a revenue rise. The company and Liberty Media announce that Liberty will license Net2Phone's Voice over IP technology for five years.

Pinnacle Systems (PCLE ) sees about breakeven Q4 (pro forma) on $60M-$64M sales, which is about 10% less than previoiusly expected.

Rainbow Technology (RNBO ) sees a $0.06-$0.09 Q2 loss vs. previous guidance of breakeven, and expects Q2 revenues to be down about 5%.

Quanta (PWR ) sees $0.35-$0.38 Q2 EPS on about $500M revenues and sees $1.73- $1.77 2001 EPS on about $2.2B revenues, citing greater than expected contract delays, cancellations and reduced margins.

United Auto Group (UAG ) expects to exceed $0.30 Q2 consensus EPS estimate by $0.05, and the $1.07 2001 estimate by $0.09, citing continued revenue and gross profit growth.

Lantronix (LTRX ) filed to offer 9 million shares.

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