Movers: GE, Genentech, Foundry Networks, Frontier Airlines
General Electric (GE) posts first quarter EPS from continuing operations of $0.44, vs. $0.48 a year ago, as decline in financial services earnings offset 7.8% revenue rise. Says its inability to complete asset sales, higher mark-to-market losses, impairments impacted EPS by $0.05 vs. plan. Sees $0.53-$0.55 second quarter EPS from continuing operations, and lowers 2008 EPS guidance to $2.20-$2.30.
Genentech (DNA) posts $0.84, vs. $0.74 a year ago, first quarter non-GAAP EPS on 8% higher revenue. While earnings are ahead of $0.82 consensus view, sales of Avastin and some of the company's other major drugs fell short. Continues to forecast 2008 non-GAAP EPS of $3.35-$3.45. Thomas Weisel reportedly downgrades to market weight.
Foundry Networks (FDRY) sees first quarter revenue $148-$150 million and GAAP EPS of $0.08-$0.09 (including approximately $8.5 million of tax-effected stock-based compensation). Says order closure rates in most geographies fell below expectations.
Frontier Airlines Holdings (FRNT) says that, following an unexpected attempt by its principal credit card processor to substantially increase a "holdback" of customer receipts, which threatened to severely impact FRNT's liquidity, FRNT and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Power-One (PWER) expects first quarter revenues of $116-$118 million, compared to prior guidance of $130-$135 million. Now sees $0.14-$0.16 loss per share, vs. prior view of $0.04-$0.07 loss. Cites its inability to deliver product on time to its customers due to manufacturing planning inefficiencies and supply chain constraints.
PDL Biopharma (PDLI) says its board approved a special cash dividend of $4.25 per share. Announces that it plans to spin off its biotech assets into a publicly traded company, which will separate its antibody-humanization royalty assets from its other biotech operations. Also says it expects 2008 royalty revenues to be $240-$260 million.
Trizetto Group (TZIX) agrees to be acquired and taken private by funds advised by Apax Partners for about $1.4 billion. Terms: $22 per share in cash for each TZIX share.
Tollgrade Communications (TLGD) sees first quarter of $13.2 million, compared to its prior view of $13.5-$16 million. Also, it expects loss to be greater than previous estimated loss of $0.05-$0.14. Engages Needham as its financial advisor to assist in its ongoing review of strategic business opportunities to enhance shareholder value.
IXIA (XXIA) sees first quarter total revenues of $41-$42 million, slightly below the low end of the company's previous guidance of $42-$46 million. Cites larger-than-anticipated decreases in Europe and Canada as compared to the fourth quarter of 2007, lower-than-expected revenues from carriers in North America and Europe also contributed to the shortfall. Sees non-GAAP EPS of $0.03-$0.04.