Pozen Plunges on FDA Postponement

Texas Instruments raises guidance; Xilinx sees revenue growth; plus more stocks in the news Friday

From Standard & Poor's Equity Research

Shares of Pozen (POZN) plunged Friday after the company said the FDA has postponed approval of its migraine drug, Trexima; the agency has requested additional safety information.

Take-Two Interactive Software(TTWO) posts 71 cents second quarter loss vs. 12 cents loss as charges, higher costs, and expenses offset a 19% revenue rise. It sees additional costs in the third and fourth quarter. It also notes a Federal Trade Commission inquiry concluded with no penalties or fines assessed under the Consent Order.

Texas Instruments (TXN) raises second quarter guidance to between 46 cents and 48 cents earnings per share (EPS) from continuing operations from 38 cents to 43 cents (both after 4 cents stock option expense), on revenue of $3.63 billion to $3.78 billion vs. the prior range of $3.46 billion to $3.75 billion.

Xilinx (XLNX) sees first quarter sequential revenue growth of 1% to 5%, unchanged from previous guidance. It expects gross margin of about 62%, down slightly from prior guidance of about 62.5% due primarily to mix shifts within the new products category.

National Semiconductor (NSM) posts 34 cents vs. 36 cents fourth quarter EPS (GAAP) as a charge for repatriation of foreign earnings and other items offset 23% higher revenue. It sees first quarter revenue down 2% to 3% from the fourth quarter. It sets an additional $500 million stock buyback.

Quiksilver (ZQK) posts 3 cents vs. 28 cents second quarter EPS despite a 21% revenue rise. It reiterates 87 cents to 88 cents fiscal year 2006 EPS guidance.

Sharper Image (SHRP) posts 84 cents first quarter loss vs. 30 cents loss on a 26% revenue drop. It notes weaker revenues from its Ionic Breeze line of air purifiers and massage chairs.

Shuffle Master (SHFL) posts 37 cents second quarter loss vs. 19 cents EPS as higher costs and expenses offset a 60% revenue rise. It maintains $1.02 to $1.05 fiscal year 2006 EPS guidance, which excludes adoption of FAS 123R, as well as any cost or contribution from the Stargames acquisition.

Michaels Stores (MIK) based on recent media reports regarding historical stock option practices at other public companies, Michaels Stores's Audit Committee initiated internal review on a proactive basis into the company's historical stock option grant practices.

Royal Group Technologies (RYG) agrees to be acquired by Georgia Gulf (GGC) for about C$1.7 billion, or C$13 per share, in cash.

Stratos (STLW) says Steel Partners II, L.P. has offered to acquire all common shares of Stratos it does not already own for $7.50 per share in cash.

Lakeland Industries (LAKE) posts 29 cents vs. 34 cents first quarter EPS despite a 5.9% sales rise. It notes a DD clearance sale filled supply lines leading to abnormally weak pricing, with sales in April for Tyvek Protective Garments.