Advanced Fibre Climbs

Pharmion jumps; Navistar declines; plus more of today's stocks in the news

Telecom-gear maker Advanced Fibre Communications (AFCI ) agreed to be acquired by Tellabs (TLAB ) for around $1.9 billion in cash and stock. The terms are 1.55 share of Tellabs and $7.00 cash per Advanced Fibre share. S&P reiterates hold on Advanced Fibre and Tellabs.

Pharmion (PHRM ) received approval from the Food and Drug Administration to market Vidaza for the treatment of myelodysplastic syndromes, which are bone marrow disorders. The company notes the FDA approved Vidaza for the treatment of all five subtypes of the disease. Pharmion expects to make Vidaza commercially available within several weeks. Pacific Growth reiterates overweight.

Trucking company Navistar (NAV ) posted 54 cents (including a 6 cents foreign-exchange impact) second-quarter earnings per share, vs. a 21 cents loss on 21% higher sales. Navistar forecast 60 cents to 70 cents third-quarter earnings per share. S&P maintains hold.

Intuit (INTU ) posted $1.36, vs. $1.08 third-quarter earnings per share (GAAP) on a 12% total net revenue rise. The financial-software maker sees a 9 cents to 13 cents fourth-quarter loss. Intuit sees $1.85 billion to $1.87 billion in fiscal 2004 revenues, and $1.67 to $1.71 earnings per share, expects fiscal 2005 revenue growth in the high single digits, and set a $500 million buyback. Needham downgraded to hold from buy. S&P reiterates hold.

Lehman Brothers upgraded Delta Air Lines (DAL ) to overweight from equal-weight. On Wednesday, the air carrier named Mike Palumbo as CFO and announced a new leadership team.

Technical services company Black Box (BBOX ) posted lower-than-expected 61 cents, vs. 21 cents fourth-quarter earnings per share despite a 3.8% revenue decline. Baird downgraded to underperform from neutral.

Brocade Communications (BRCD ) posted 3 cents second-quarter earnings per share, vs. breakeven on an 11% revenue rise (excluding charges), meeting analysts' average expectations. Brocade settled a claim regarding a pay-out to shareholders of Rhapsody, which it acquired in Nov., 2002. Also, the company said it laid off 110 workers, or 9% of its workforce. S&P keeps avoid on the data-storage networker. Deutsche Bank reportedly upgraded to buy. Merrill Lynch upgraded to buy from neutral.

AG Edwards upgraded Hot Topic (HOTT ) to buy from hold.

Toronto-based Rogers Communcication (RG ) says it didn't reach an agreement during a 21-day exclusive negotiations period to acquire AT&T Wireless' (AWE ) 34% interest in Rogers.

Bristol-Myers (BMY ) reportedly says it will pull its antidepressant drug, Serzone, off the U.S. market next month.

Credence Systems (CMOS ) posted 6 cents second-quarter earnings per share, vs. a 46 cents loss on a sharp sales rise. The maker of chip-testing equipment expects third-quarter revenue of about $116 million to $120 million, and earnings per share of 15 cents to 17 cents.

Chip-design software maker Synopsys (SNPS ) posted 18 cents, vs. 15 cents second-quarter earnings per share (GAAP) on a 1% revenue rise. Synopsys sees 35 cents to 40 cents third-quarter earnings per share (non-GAAP) on $300 million to $320 million in revenues.

Kirkland's (KIRK ) posted 4 cents vs. 6 cents first-quarter earnings per share despite slightly higher same-store sales and 13% higher total sales. The home-furnishing retailer sees a 3 cents to 7 cents second-quarter loss on $85 million to $87 million in revenues, with a comp-store sales decline of 2% to 4%.

Longs Drug Store (LDG ) posted 25 cents, vs. 16 cents first-quarter earnings per share on a 5.1% sales rise. Longs sees second-quarter total sales increasing in the 3% to 5% range with 24 cents to 27 cents earnings per share. Long's reiterated the fiscal 2005 earnings per share of $1.05 to $1.10.

Animal-supplies chain Petco (PETC ) posted 27 cents, vs. 19 cents first-quarter earnings per share on 6.3% higher same-store sales and 14% higher total sales. Petco sees 28 cents to 29 cents second-quarter earnings per share, and raised the fiscal 2005 earnings per share estimate to a range of $1.43 to $1.44.

Foot Locker (FL ) posted 31 cents, vs. 26 cents first-quarter earnings per share on flat same-store sales and a 5.1% total sales rise. The footwear retailer sees second-quarter and fiscal 2005 earnings per share growth from continuing operations in the 10% to 20% range.