Guidant Slides on FDA Panel Rejection

Factory 2-U shares fall on an earnings warning; Getty Images will cut 300 jobs; plus other stocks in the news

Salomon SB notes shares of Comverse Technology (CMVT ) are down sharply, and says there's a buying opportunity.

Guidant Corp. (GDT ) says the FDA Circulatory Systems Device Panel voted not to recomend approval of the company's Contak CD/Easytrak system.

The FDA requested more data from Genentech (DNA ) and its partner Novartis (NVTS ) on Xolair for the treatment of allergic asthma. S&P downgraded to hold. Shares of Tanox Inc. (TNOX ), one of the development partners along with Novartis, are sharply down on the news.

UBS Warburg reiterates buy on AT&T (T ). On Monday the company completed its AT&T Wireless separation, and said it has no current plans to sell its broadband business, but will evaluate the Comcast proposal. CNBC says John Malone resigned from the AT&T board Monday.

Verisign Inc. (VRSN ) and Microsoft (MSFT ) entered an alliance in which Verisign will provide authentication and security technologies support for future .NET offerings. S&P maintains hold.

Getty Images (GETY ) sees $0.30-$0.32 Q2 ATCF per share on revenue of about $115M, which is about 4% below the low end of the company's previous revenue guidance. Getty will cut its workforce by 300.

Tivo Inc. (TIVO ) affirmed its previously announced Q2 and fiscal 2002guidance. DB Alex Brown is skeptical pending further details.

Questar Corp. (STR ) sees $0.31-$0.35 Q2 EPS, below the consensus estimate of $0.37. Prudential downgraded to hold from buy.

Gadzooks Inc. (GADZ ) sees a$0.06-$0.10 Q2 loss on a 7%-9% same-store sales decline, and $0.95-$1.10 fiscal 2002 EPS. Tucker Anthony downgraded to market perform from buy.

Robertson Stephens raised the estimates and reiterates strong buy on AmeriCredit (ACF ).

Merrill upgraded Vail Resorts (MTN ) to near-term buy from neutral.

Value City Department Stores (VCD ) received a $275M offer for its Shonac, DSW Shoe Warehouse and Filene's Basement units from Schottenstein Corp., which owns about 54% of Value City.

Triton Energy (OIL ) agreed to be acquired by Amerada Hess (AHC ) via a $45 cash tender offer per Triton share. The deal has a total value of about $3.2B, including debt assumption of about $500M.

Corning Inc. (GLW ) warned for the second half of the fiscal year and sees earnings below the consensus estimate of $0.38. Corning will discontinue its common stock dividend, close three Photonic Technologies plants and take a $5.1 billion charge in Q2. The chemical concern also will be cutting 1,000 jobs. On Monday, Standard & Poor's cut the company's senior debt rating to A- from A.

Shaw Group (SGR ) posted $0.42 vs. $0.23 Q3 EPS on sharply higher sales.

Limited (LTD ) will sell its Lane Bryant unit to Charming Shoppes (CHRS ) for $335M, consisting of $280M cash and $55M in Charming Shoppes stock.

Inamed Corp. (IMDC ) sees $0.42-$0.44 Q2 EPS from operations on lower than expected revenue of $62.6M. S&P maintains hold.

Neon Systems (NESY ) sees a $0.24-$0.27 Q2 loss on $6M-$6.2M in revenue.

Meristar Hospital (MHX ) estimates Q2 RevPAR to decline between 5.5%-6% vs. previous guidance of slight decline. As a result, Meristar cut the Q2 FFO gudiance to $1.13-$1.15.

Felcor Lodging (FCH ) cut the Q2 guidance to $0.94-$0.96 FFO, citing the economic slowdown and a sharp decline in business travel.

Linens 'n Things (LIN ) sees $0.11-$0.12 Q2 EPS on 3.6% lower same store sales.

Ferro Corp. (FOE ) sees $0.30-$0.32 Q2 EPS on essentially flat sales from ongoing operations.

Xerox (XRX ) will eliminate the payment of its common stock dividend.

Mentor Graphics (MENT ) expects to meet or exceed the $0.25 Q2 EPS consensus estimate, but says Q2 bookings were weak. S&P downgraded to hold.

Phoenix Technology (PTEC ) sees lower than expected $31M-$32M Q3 revenue, and a $0.07-$0.09 loss, citing continued softness in orders from OEM customers in the PC industry.

Factory 2-U Stores (FTUS ) sees $0.04-$0.05 Q2 EPS on a 2%-4% decline in same store sales, and posted 5.5% lower June same store sales. UBS Warburg and CIBC World downgraded. Wedbush maintains buy and slashed the target.

Aspect Medical (ASPM ) sees flat Q2 sequential revenue growth, and a $0.24 Q2 loss (high end of previously stated $0.19-$0.24 loss range), citing a difficult environment for hospital customers.

Newport Corp. (NEWP ) affirmed Q2 guidance of $0.32 EPS on $95M-$100M in revenue and sees $1.10-$1.15 2001 EPS. Given the concern with a steep decline in new orders received, the company says it will implement staff reductions and other cost containment programs.

Gadzooks (GADZ ) sees a $0.06-$0.10 Q2 loss on 7%-9% same store sales decline, and $0.95-$1.10 EPS for fiscl 2002.

Questar Corp, (STR ) sees $0.31-$0.35 Q2 EPS, below the consensus estimate of $0.37.

Autonomy Corp. (AUTN ) sees $0.01-$0.02 Q2 EPS, slightly ahead of consensus.

Serological Corp. (SERO ) says it has been added to the Russell 2000 Index.

Infosys Tech (INFY ) posted $0.30 vs. $0.20 Q1 earnings per ADS on a 63% revenue rise, and sees $131M-$134M Q2 revenue, $0.29-$0.30 Q2 EPADS, $530M-$545M fiscal 2002 revenue, and $1.24-$1.27 EPADS.

Protective Life (PL ) will sell its Dental Benefits Division to Fortis, Inc. in a $300M deal.

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