Xerox Restates Revenues by $1.9 Billion
Xerox (XRX ) said revenues for the five-year period ending 2001 have been reduced by 2% to $91 billion, as a result of a restatement related to a change in accounting methodology. The copier giant on Friday will file a 2001 10-K, which will include a restatement for the years 1997 to 2000, as well as adjustments to 2001 results. The revised results will a larger than expected reversal of equipment sale revenue. S&P and Merrill downgraded Xerox's rating.
Eclipsys (ECLP ) sees a worse than expected $0.04-$0.06 second quarter loss (pro forma) on $52M-$54M revenues, citing a delay on contract negotiation closures. Merrill, USB Piper, and Jefferies downgraded.
Thomas Weisel is more cautious on Getty Images' (GETY ) second quarter; however, he thinks the weaker quarter is already priced into the stock and recommends buying the stock on weakness.
Merrill downgraded Cerner (CERN ) to near term reduce/sell from buy, and to long term neutral from buy.
Banc of America cut Elan (ELN ) estimates, and target, citing Elan's sooner-than-expected approval for generic Zanaflex.
Merrill downgraded Allegheny Energy (AYE ) to near term neutral from buy, and long term neutral from strong buy. S&P downgraded to avoid.
Atlas Air (CGO ) and the Airline Pilots Association reached a tentative agreement for their first labor contract.
Merrill Lynch downgraded Eclipsys (ECLP ) to near term reduce/sell from buy, and long term neutral from buy.
Nike (NKE ) posted better than expected $0.77 vs. $0.60 fourth quarter EPS on an 8% revenue rise.
Varian Semiconductor (VSEA ) raised third quarter EPS guidance to $0.06-$0.09, and upped revenue to $91M-$96M, citing late-quarter acceleration in customer demand.
Elon Labs (ELAB ) received final approval for Tizanidine HCl in 4mg tablets, an alternative for spasticity treatment Zanaflex. Shipments will begin immediately.
Lightbridge (LTBG ) sees breakeven to $0.01 second quarter EPS (pro forma) on lower than expected revenue of about $33M-$34M, and will cut its workforce by 7%.
Manugistics (MANU ) posted a $0.27 first quarter loss vs. $0.03 EPS (adjusted) on a 19% revenue decline, and expects second quarter revenue to be down slightly from first quarter.
Acclaim Entertainment (AKLM ) posted $0.03 third quarter EPS from operations on a 63% revenue rise, noting gross profits were 5.5% below plan. UBS Warburg reportedly downgraded to hold from buy.
Dollar Thrifty (DTG ) expects to exceed consensus EPS estimate of $0.54.