Apple Gains on Windows Software News

DaimlerChrysler to sell stake in European Unit; Sears sets a stock buyback; plus more stocks in the news Wednesday

Shares of Apple Computer (AAPL) moved solidly higher Wednesday after the company introduced Boot Camp, public beta software that enables Intel-based Macs to run Microsoft Windows XP.

DaimlerChrysler (DCX) is to sell 7.5% out of its 30% stake in European Aeronautic Defence & Space , in a deal that amounts to about €2 billion. It says the net income impact of about €1 billion will occur in 2007.

Sears Holdings (SHLD) sets an additional $500 million stock buyback.

Maxtor (MXO) sees 39 cents to 40 cents first quarter loss (GAAP) on $875 million to $885 million revenue. It cites challenges related to its pending acquisition by Seagate Technology (STX). It is to cut 900 positions at its Singapore manufacturing facility, and expects to take a $6 million reserve in the first quarter.

Autodesk (ADSK) reiterates fiscal year 2007 guidance for $1.12 to $1.17 earnings per share (EPS) (Generally Accepted Accounting Principles) on 18% to 20% revenue growth.

Mercury Computer (MRCY) based on preliminary data, sees $43 million to $44 million third quarter revenue vs. previous guidance of $55 million to $58 million. It cites its defense business, where technical problems associated with third-party products occurred, and system failed acceptance testing.

St. Jude Medical (STJ) sees $784 million first quarter sales vs. $799 million to $839 million guidance. It sees 35 cents to 36 cents first quarter EPS. It also cites lower-than-expected revenues from implantable cardioverter defibrillators (ICDs).

Career Education (CECO) says it was advised by staff of the Midwest Regional Office of the Securities and Exchange Commission that it intends to recommend to the SEC that it terminate its investigation of the company, and will recommend that no enforcement action be taken against it.

Pathmark Stores (PTMK) posts 17 cents fourth quarter loss vs. 4 cents EPS (both excluding adjustments) on a 0.8% same-store sales drop. It notes adjusted fourth quarter EBITDA decreased from $45.4 million to $27.0 million, primarily due to higher shrink and higher Selling General & Administrative costs.

P.F. Chang's (PFCB) posts $229 million vs. $194 million first quarter revenue, reflecting a 14% rise at Bistro and a 36% rise at Pei Wei Asian Diner. It says same- store sales are up 1.3% at Bistro and off 2% at Pei Wei.

Greatbatch (GB) S&P notes that shares are lower today after St. Jude Medical (STJ) lowered its growth forecast for implantable cardioveter defibrillators. St. Jude is one of Greatbatch's three largest customers.

Richardson Electronics (RELL) finds errors in financial accounting at its Italian unit and says estimates will reduce stockholders' equity by $3 million to $4 million. It says fiscal year 2003 to fiscal year 2005, as well as interim periods ended Sep. 3, Dec. 3, 2005 financials should not be relied upon. President and Chief Operating Officer Buckland resigns.

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