SAN FRANCISCO – Among the companies whose shares are expected to see active trading in Tuesday's session are Lehman Brothers Holdings Inc., Texas Instruments Inc., and Take-Two Interactive Software Inc.
Finisar Corp. (FNSR) is expected to report fourth-quarter earnings of 2 cents a share, according to a survey of analysts by Thomson Financial.
Lehman Brothers (LEH) is expected to post earnings of $1.88 a share for the second quarter.
Measurement Specialties Inc. (MEAS) is expected to report fourth-quarter earnings of 26 cents a share.
RBC Bearings Inc. (ROLL) is expected to post earnings of 41 cents a share for the fourth quarter.
Rentrak Corp. (RENT) is expected to report fourth-quarter earnings of 11 cents a share.
Sapient Corp. (SAPE) is expected to post earnings of 2 cents a share for the first quarter.
After Monday's closing bell, Texas Instruments (TXN) , the world's No. 1 maker of cell phone chips, narrowed its second-quarter financial targets. The company forecast sales in the range of $3.36 billion to $3.51 billion, compared with its prior forecast of $3.32 billion to $3.6 billion. See full story.
American Commercial Lines Inc. (ACLI) said it now expects 2007 per-share earnings of $1.45 to $1.65, down from its previous outlook of $1.75 to $1.95. The lowered forecast is driven primarily by the further weakness in the spot grain markets over first quarter levels and lower-than-planned productivity levels in the manufacturing segment during the second quarter, the Jeffersonville, Ind.-based marine transportation and services company said. Analysts polled by Thomson Financial are currently estimating earnings of $1.84 a share for the year ending Dec. 31, 2007. ACL also said it has authorized the buyback of up to $200 million of its shares. The revised outlook for the year doesn't include the impact of repurchased shares, the company noted.
Aspen Technology Inc. (AZPN) said financial reports for the three years ended June 30 and periods between June 30, 2005 and March 31, 2007 shouldn't be relied upon and will be restated. The Cambridge, Mass., supply-chain management software company expects the restatements will result in the creation of two new balance sheet captions of a collateral asset for secured borrowing and a secured borrowing liability. The company cited errors in accounting for sales of installments receivable, adding the restated balance sheet doesn't affect its net financial position.
The Department of Justice's Antitrust Division said it has closed its investigation into the proposed acquisition of CBOT Holdings Inc. (BOT) by Chicago Mercantile Exchange Holdings Inc. (CME) , saying the deal is not likely to reduce competition substantially. The DOJ said in a statement that the exchanges' "products are not close substitutes and seldom compete head to head" and "they are, absent the merger, unlikely to introduce new products that compete directly with the other's entrenched products." CBOT's board has recommended that shareholders vote in favor of the company's merger agreement with CME. IntercontinentalExchange Inc. (ICE) is also bidding to acquire CBOT.
Coley Pharmaceutical Group Inc. (COLY) said it has agreed to acquire the majority of 3M Co.'s (MMM) therapeutic Toll-like receptor cancer programs. Under the agreement, 3M will receive cash payments totaling $20 million over a three-year period, including an immediate payment of $5 million, Coley said. In addition, 3M could potentially receive milestone payments, as well as royalties from the sale of any products that are developed and commercialized in association with the deal. The acquisition includes a pipeline of clinical and preclinical small molecule candidates targeting TLR7 and TLR8, as well as an extensive intellectual property estate. Coley said it expects to record a $20 million charge related to the acquisition in its second quarter. The company said it now expects a full-year net loss of $45 million to $49 million, with research and development expenses expected to be about $59 million. The cash burn outlook remains unchanged, Coley said.
Cyberonics Inc.'s (CYBX) fiscal fourth-quarter loss widened to $10.8 million, or 42 cents a share, from $4.27 million, or 17 cents a share, a year earlier, as sales fell 13 percent. The Houston medical device company's revenue decreased to $31.4 million from $36 million. Analysts polled by Thomson Financial expected, on average, a loss of 35 cents a share on revenue of $33 million.
Energy Transfer Partners LP (ETP) and Energy Transfer Equity LP (ETE) said Ray C. Davis, co-chief executive and co-chairman of Energy Transfer Partners and co-chairman of Energy Transfer Equity, will retire. The Dallas-based energy companies said Kelcy L. Warren, currently Davis' co-chief executive and co-chairman, will become the sole chief executive and chairman at Energy Transfer Partners and sole chairman at Energy Transfer Equity. Davis, a co-founder of Energy Transfer Partners, will remain a director of both companies.
Henry Schein Inc. (HSIC) said it plans to offer to acquire Software of Excellence International Ltd. for NZ$2.70 ($2.03) a share, after the payment of a dividend of NZ$.03 a share. If completed, the total purchase price, excluding transaction costs, will be NZ$77.2 million ($58 million) and is expected to be paid in cash, the Melville, N.Y.-based company said. Henry Schein said it expects the proposed transaction to be neutral to 2007 earnings and to add slightly to 2008 earnings. Investors representing about 23 percent of the outstanding shares and mandatory convertible notes of SOE, including Chief Executive Brian Weatherly, and the company's largest shareholder, have entered into a lock-up agreement under which they have agreed to accept the offer, Henry Schein said.
Jamba Inc. (JMBA) (JMBAU) (JMBAW) reported fiscal first-quarter net earnings of $11.9 million, or 20 cents a share, versus a year-ago net loss of $81.5 million, or $3.88 a share. The fiscal first quarter ended May 1 included a pre-tax gain of $15.2 million, or 26 cents a share, related to the change in the fair value of derivative liabilities. Revenue increased 22 percent to $89.4 million from a pro-forma $73.5 million in the prior-year period, while comparable store sales rose 4.2 percent for company-owned stores and 2.9 percent for franchise stores. Analysts polled by Thomson Financial were expecting, on average, a per-share loss of 9 cents on revenue of $68 million.
Massey Energy Co. (MEE) said it has completed its strategic review and determined that it is in the best interests of its shareholders if Massey remain an independent public company. The review, which was announced in October 2006, was conducted with the assistance of Goldman, Sachs & Co., the Richmond, Va.-based coal company said. "We will follow the same strategic principles we have in the past," said Massey Chairman and Chief Executive Don Blankenship. "We will focus on expanding our margins while continuing to consolidate the Central Appalachian region via opportunistic acquisitions."
Murphy Oil Corp. (MUR) said its Murphy Oil Co. Ltd. subsidiary has acquired the interests of Bear Ridge Resources Ltd. in the Tupper area, an undeveloped Montney natural gas play in British Columbia, for C$155 million ($146.2 million). Murphy Oil is based in El Dorado, Ark.
Rubio's Restaurants Inc. (RUBO) said it has named Frank Henigman as chief financial officer, effective immediately. Henigman has served as acting CFO since May, the Carlsbad, Calif.-based restaurant operator said.
Source Interlink Cos. (SORC) fiscal first-quarter net income increased 10% to $3.2 million, or 6 cents a share, from a year-earlier profit of $2.9 million, or 5 cents a share. The Bonita Springs, Fla., information and management services company said that excluding amortization of acquired intangibles, income was $5.2 million, or 10 cents a share, up 6 percent from $4.9 million, or 9 cents a share, in the year-earlier period. Revenue grew 6 percent to $475.4 million for the period ended April 30 from $447.9 million a year earlier. Wall Street expected first-quarter earnings of 13 cents a share, on revenue of $514.5 million, according to the average estimate of analysts polled by Thomson Financial.
Standard Pacific Corp. (SPF) said new home orders for the first two months of the second quarter fell 16 percent from a year earlier, 20 percent below the company's business plan for the period. The Irvine, Calif., homebuilder said its cancellation rate for April and May fell to 28 percent from 35 percent in the year-ago period. Standard Pacific's shares closed Monday down 37 cents, or 1.8 percent, at $19.88.
Sunstone Hotel Investors Inc. (SHO) said it has authorized the buyback of up to $100 million of its common stock, or about 5 percent of its outstanding shares based on the current market price. The repurchase program includes up to $60.2 million of common stock that Sunstone expects to buy back in connection with an offering of senior exchangeable notes, the San Clemente, Calif.-based real estate investment trust said.
Take-Two Interactive Software (TTWO) reported a fiscal second-quarter net loss of $51.2 million, or 71 cents a share, compared with a net loss of $50.4 million, or 71 cents a share, in the year-ago period. Excluding certain items, the company posted a loss of $29.7 million, or 41 cents a share, versus $37 million, or 52 cents a share, last year. The New York-based video game company said revenue for the three months ended April 30 fell to $205.4 million from $265.1 million in the comparable period last year. Analysts polled by Thomson Financial were expecting, on average, a per-share loss of 58 cents on revenue of $204 million. Take-Two said it still expects breakeven results on a per-share basis in fiscal 2007 and revenue of $1.2 billion to $1.25 billion. The company also forecast a fiscal third-quarter net loss of 60 cents to 65 cents a share on revenue of $195 million to $215 million, and forecast a fiscal fourth-quarter net profit of $1.35 to $1.40 a share on revenue of $520 million to $550 million. Analysts are looking for a third-quarter loss of 17 cents.
Take-Two Interactive Software (TTWO) announced a restructuring plan that it expects to reduce its fixed overhead costs by $25 million by the end of fiscal 2008. Under the plan, the New York-based video game company will restructure its international operations to consolidate the marketing, sales and operational functions; realign label and studio administrative functions; consolidate the management, marketing and business development operations of the 2K and 2K Sports labels on the West Coast; and consolidate third-party PC distribution into North American sales. Take-Two expects to take $15 million of charges related to the restructuring through fiscal 2008, with approximately half of the charges expected in fiscal 2007. The company also named interim Chief Financial Officer Lainie Goldstein as CFO.