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Market Preview For Wednesday
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Intel [INTC] after Tuesday's close reported fourth-quarter earnings of $0.38 a share, a penny better than Wall Street forecasts. The semiconductor giant, though, said it expects sales for the first quarter to be down 15% due to economic uncertainty. Intel shares gained more than 3% in
extended-hours trading, after closing down 2.3% during the regular session.
Juniper Networks [JNPR] late Tuesday reported fourth-quarter earnings of $0.24 a share, compared with $0.17 during the same period last year. Analysts polled by First Call expected $0.18 a share. Revenue surged 47%
from the third quarter. Juniper moved higher in after-hours trading.
Shares of Novellus Systems [NVLS] rose 13% in Tuesday's extended-hours session after the company reported a fourth-quarter profit of $0.76 a share, beating the First Call consensus estimate by $0.06.
After Tuesday's close, Applied Micro Circuits [AMCC] reported third-quarter earnings that beat expectations and boosted targets for the following quarter. AMC moved higher in after-hours trading.
VA Linux Systems [LNUX] late Tuesday said every part of its business is being hurt by an overall economic slowdown.
OPEC ministers hold special meetings in Vienna on Wednesday to discuss oil output.
Shares of IDEC Pharmaceuticals [IDPH] are expected to split 3-for-1 based on Wednesday's closing price.
<u>Word On The Street</u>
"I have never seen an earnings period that has been greeted with more trepidation by technology investors," says Arnold Berman, technology strategist with Wit SoundView.
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Ralph
MaryMeeker
17.01.2001, 10:01
Hyundai Electronics : Hearing reports that Hyundai Electronics intends to sell shareholdings, property and businesses to raise $1 trillion Won ($782 mln) to repay debt; will freeze wages for one year; cut executives by 30% and their entire workforce by a quarter.
USinternetworking (USIX) 4 15/16 +5/16: -- Update -- Announces plans to reduce its workforce by 11%, or approximately 150 employees. Cites recent organizational changes; says the workforce reductions will occur predominately in areas where increasing efficiency and organizational re-alignment have created excess capacity.
Minn Mining & Mfg (MMM) 113 1/2 +3 13/16: Reports Q4 earnings of $1.12 a share, $0.08 worse than the Zacks consensus of $1.20, vs year-ago earnings of $1.10; revenues rose 1.9% to $4.10 bln from a year-ago of $4.02 bln.
NorthPoint Comms (NPNT) 1 1/2 +3/4: DSL service provider files for Chapter 11 protection with the U.S. Bankruptcy Court for the Northern District of California in San Francisco. Additionally reports that it has secured a commitment for up to $38 million of debtor in possession (DIP) financing from its existing lenders to continue day-to-day operations.
Hertz Corp (HRZ) 34 13/16 -1/16: -- Update -- Reports Q4 earnings of $0.52 a share, $0.01 better than the First Call consensus of $0.51, vs year-ago earnings of $0.56; revenues rose 3.5% to $1.21 bln from a year-ago of $1.17 bln.
Ford Motor (F) 27 1/8 +3/4: Company and Hertz (HRZ 34 13/16) announce an agreement under which Ford will acquire all the publicly held shares of common stock of Hertz at a price of $35.50 per share; the $35.50 per share price represents an 18 percent increase over Ford's original offer of $30 per share made in September 2000.
SCI Systems (SCI) 27 3/8 -1 3/4: Company signs agreement to purchase from Nortel Networks Limited (NT 31 15/16) its Physical Design Implementation Rapid Systems Laboratory. Additionally SCI and Nortel Networks announce a multi-year, multi-million dollar supply agreement to provide early prototyping services.
Teradyne (TER) 38 1/2 -1 1/2: -- Update -- Company warns for Q1; sees about $0.30; current EPS estimate is $0.65. Expects slow first half of 2001 with second half improving, but notes caution citing industry volatility.
Teradyne (TER) 38 1/2 -1 1/2: Reports Q4 earnings of $0.66 a share, $0.01 worse than the First Call consensus of $0.67, vs year-ago earnings of $0.42; revenues rose 49.8% to $821.65 mln from a year-ago of $548.52 mln; revenues for Q4 include the impact of the adoption of Staff Accounting Bulletin (SAB) 101; excluding SAB 101, the company reported revenues of $789.20 mln.
VA Linux Systems (LNUX) 9 5/16 +3/8: Company warns for Q2; sees loss of $0.24-0.28; current First Call EPS estimate is ($0.14). Expects revenues to be $43 mln to $50 mln. Cites overall economic slowdown impacting all sources of revenue from Linux servers to Web advertising banner sales.
Intel (INTC) 31 3/8 -3/4: -- Update -- Conference call just concluded with Intel noting that it was still too early to tell of any micro-indicators that would point to a rebound in the September quarter... INTC +15/16.
ArQule (ARQL) 31 1/4 +2 3/8: Chemistry-based pharmaceutical discovery company and privately held Camitro Corporation announce merger agreement, valued at approximately $95 mln.
Intel (INTC) 31 3/8 -3/4: -- Update -- Plan is for P4 to cross-over P3 in early 2002, but Intel has a goal to accelerate that cross-over into calendar 2001... INTC +1 1/16
Intel (INTC) 31 3/8 -3/4: -- Update -- Commenting on Q1 sequential sales decline, INTC expects it to be relatively common across all geographies... Going back to Q4, INTC said that while it hasn't seen the numbers from its competitors yet, it believes those numbers will show that INTC held or gained market share in Q4... INTC +1 3/64
Xircom (XIRC) 24 21/32 +6 19/32: Reports Q1 earnings of $0.01 a share, $0.13 worse than the First Call consensus of $0.14, vs year-ago earnings of $0.55; revenues fell 3.2% to $120.09 mln from a year-ago of $124.11 mln.
Intel (INTC) 31 3/8 -3/4: -- Update -- Says that it can't get a full picture on the inventory overhang right now, but its view is that it's not as widespread as one thinks.... also says it is very comfortable with its own inventory levels, but admits it is difficult to forecast unit demand at the moment due to macro-environment... INTC +5/8.
SBS Tech (SBSE) 30 1/4 unch: -- Update -- Company issues upside preannouncement for Q3; sees $0.33-0.35; current EPS estimate is $0.31. Cites the growth of their overall OEM production business and the continued prosperity of a set of customers in the wireless Internet access and optical switching markets that have continued to grow.
Intel (INTC) 31 3/8 -3/4: -- Update -- Andy Bryant says 2001 capital expenditure spending increase will focus on buying equipment for 300mm, the ramp of 0.13 micron, and finishing factories already announced... notes that past spending increases have focussed on 1/3 equipment spending, 1/3 fab spending, and 1/3 "other"... for 2001, cap-ex spending will be marked by increase for equipment and fab spending and a decrease in office buildings... INTC +9/16.
USinternetworking (USIX) 5 1/16 +7/16: Facilities-based application service provider provides future guidance- expects revenues for the first quarter 2001 to be approximately $35 million, or slightly above fourth quarter 2000 revenues prior to termination fees; revenue for 2001 is expected to be approximately $180 million, a 64% increase over expected 2000 revenues.
Intel (INTC) 31 3/8 -3/4: -- Update -- Clarifying 15% sequential sales guidance, cites 3 factors for lackluster outlook: 1) Normal seasonality 2) Channel inventory overhang of PC systems and 3) Uncertainty regarding overall economic condition... Says it has seen most of these issues before, but has rarely experienced all three together.. INTC +9/16.
Intel (INTC) 31 3/8 -3/4: -- Update -- Assuming improved economic conditions, Intel expects and is planning for seasonal strengthening in 2H01 and a pickup in PC demand as the PC is "tuned" to be the core of the new digital world.... INTC +5/8.
Intel (INTC) 31 3/8 -3/4: -- Update -- Says it will use industry slowdown to accelerate its ramp of P4 and will transition from P3 as quickly as possible... remains on track for high volume production of 0.13 micron in 2H01; also says it expects to see some cooling off of flash demand going forward which is coincident with economic slowdown... Separately, due to competition, expects to see significant price declines across the desktop segment as the year progresses.... INTC +13/16 in after hours trade.
Active After Hours : Nasdaq most actives (last trade and change from mkt close): INTC 31 11/16 +5/16...JNPR 131 11/16 +3 11/16...ETYS 0.65 +0.05.
Intel (INTC) 31 3/8 -3/4: -- Update -- Says comfort level with precise forecasts for Q1 is the lowest it has been in years due to uncertain economic environment... INTC +3/8 in after hours.
inSilicon (INSN) 6 3/4 -1/4: Reports Q1 earnings of $0.04 a share, $0.01 better than the First Call consensus of $0.03, vs year-ago of breakeven; revenues rose 14.7% to $6.03 mln from a year-ago of $5.26 mln.
Hutchinson Tech (HTCH) 18 13/16 +1/16: -- Update -- Company warns for Q2; sees loss of $0.23-0.48 per share, current EPS estimate is $0.08.
Rhythms NetConn (RTHM) 2 3/16 +1/8: Announces workforce reduction of 23%, or 450 employees, lowering of SG&A expenses by approximately $80 million or 30% to approximately $200 million, and will take a 2001 Q1 restructuring charge between $15 and $17 million. Rhythms expects to reduce its 2001 EBITDA loss, before the one-time restructuring charge, to an estimated $395 million, a savings of approximately 15% from current analyst expectations according to the company.
Elantec Semicon (ELNT) 40 1/2 -3: -- Update -- Company issues upside preannouncement for Q2; sees EPS of about $0.38; current EPS estimate is $0.37.
SBS Tech (SBSE) 30 1/4 unch: Reports Q2 earnings of $0.32 a share, $0.03 better than the First Call consensus of $0.29, vs y
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