EU Blocks GE's Purchase of Honeywell

DuPont sees results down sharply from a year ago, Rational Software warns of lower revenues; plus other stocks in the news

The European Union blocked General Electric's (GE ) proposed acquisition of Honeywell (HON ).

DuPont (DD ) sees $0.34-$0.45 Q2 EPS from operations vs. a year ago's $0.90, citing the global expansion of an economic slowdown. Salomon SB downgraded to neutral.

Internet Security (ISSX ) sees a $0.02 Q2 loss to breakeven (pro forma) results on $50M-$52M revenue vs. previous guidance of $0.15-$0.16 EPS on $64M-$67M revenue. Goldman downgraded and Lehman cut estimates and target.

Qualcomm (QCOM ) and Nokia expanded the terms of their existing CDMA terminal cross-license.

Regus PLC (REGS ) sees 2001 operating results of around breakeven on revenue rise of about 30%, and notes a marked slowdown in several key markets.

ICN Pharmaceutical (ICN ) plans to make a private offering of $250M aggregate principal amount of convertible subordinated notes.

CIBC World downgraded Ariba Inc. (ARBA ) to hold from buy on price.

Bell Microproductor (BELM ) sees a $0.10 Q2 loss from operations on sales of about $450M, citing disappointing demand for commodity semiconductors, disk drives and peripherals. Tucker Anthony cuts estimates.

Rational Software (RATL ) sees $0.07-$0.08 Q1 EPS on lower than expected revenue of $172M-$176M and reduced the fiscal 2002 revenue guidance to $825M-$900M. JP Morgan downgraded.

Extensity Inc. (EXTN ) expects Q2 revenue of about $9.1M, lower than previously forecast. DB Alex Brown downgraded to market perform from buy. (MLTX ) sees a $1M Q2 net loss on gross revenue of $24M and expects Q3 and Q4 revenue to be sequentially flat to slightly positive. JP Morgan downgraded.

PC Connection (PCCC ) sees $0.05-$0.07 Q2 EPS on sales of $296M and notes lower gross margins, which resulted from intense competitive pricing and lower overall demand levels.

Interface (IFSIA ) sees lower than expected $0.03-$0.05 Q2 EPS on revenue of $285M-$295M and currently sees $0.25-$0.35 2001 EPS.

MIPS Technologies (MIPS ) sees breakeven Q4 on lower than expected revenue of $14M-$15M.

Chemed Corp. (CHE ) sees lower than expected $0.32-$0.33 Q2 EPS from continuing operations before capital gains vs. a year ago's $0.50.

Stoneridge Inc. (SRI ) cut the Q2 EPS guidance to $0.05-$0.10, and cut the 2001 EPS estimate to $0.30-$0.40.

Roadway (ROAD ) posted better than expected $0.22 vs. $0.52 Q2 EPS on a 9.2% revenue drop, and says it appears that after 3 consecutive quarters of decline, business levels have stabilized.

The FDA completed its review of Orphan Medical's (ORPH ) NDA for Xyrem oral solution, and determined it is approvable for the indication of cataplexy related to narcolepsy.

Solectron (SLR ) filed for a $3B universal shelf offering.

Axsys Technology (AXYS ) cut Q2 guidance to a $0.16-$0.18 loss from operations on $23M in revenue, citing weakness in irsDistributed Products Group. Axsys set a cost reduction program.

Check Point (CHKP ) sees $0.32 Q2 EPS on revenue of $140M-$142M vs. a year ago's $0.17 EPS on revenue of $90.7M.

Broadvision (BVSN ) sees $0.17-$0.20 Q2 loss from operations (basic, pro forma) on $52M-$58M revenue, citing adverse effects from uncertainties on the current IT spending environment.

i2 Technologies (ITWO ) sees a $0.12 Q2 loss from operations (pro forma) on $235M-$240M revenue. I2 will take a $25M-$27M charge for bad debt expense and says market conditions were much more difficult than anticipated.

WD-40 Company (WDFC ) posted $0.24 vs. $0.32 Q3 EPS as higher advertising, sales promotion expenses and other costs offset an 11% sales rise.

E.Piphany (EPNY ) sees a $0.29-$0.30 Q2 loss from operations on about $31M in revenue, citing weakness in international business.

Amkor Technology (AMKR ) sees $350M Q2 total revenues vs. Q1's $481M and expects Q2 assembly and test revenues to be about 30% below Q1 levels. S&P maintains hold.

Ikos Systems ( IKOS ) agreed to be acquired by Synopsys (SNPS ) for a price that will range between $6-$20 per share (determined by Ikos' financial performance in the 12-months ending June 2). Separately, Ikos sees a $0.45-$0.50 Q3 loss.

Informatica (INFA ) sees a $0.01 Q2 loss (pro forma) on revenue of about $47M.

Electroglas (EGLS ) cut the Q2 revenue guidance to $22M-$24M from previously anticipated $26M-$30M. S&P maintains avoid.

Polycom (PLCM ) sees lower than expected $0.12-$0.13 Q2 EPS (pro forma) on revenues of $83M-$85M. S&P maintains hold.

National Instruments (NATI ) says Q2 results will be about $0.18 EPS on revenue of $98M, citing declining revenues from mature instrument control hardware products as well as the strong US$.

Sybase (SY ) says Q2 revenues will be softer than expected in the midst of weak market conditions. However, Sybase confirmed that Q2 and 2001 EPS should be in line with analysts' estimates. S&P maintains sell.

U.S. Vision (USVI ) agreed to be acquired by group led by owners of 25% of U.S. Vision common for $4.25 per share cash.

Resources Connection (RECN ) posted $0.23 vs. $0.15 Q4 EPS on a 44% revenue rise. The company believes current Q1 estimates are "reasonable."

RSA Security (RSAS ) will be added to the S&P SmallCap 400 after close of trading on July 6, replacing Houghton Mifflin, which is being acquired.

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