SAN FRANCISCO – Among the companies whose shares are expected to see active trading in Wednesday's session are Novell Inc., TiVo Inc., and Google Inc.
Big Lots Inc. (BIG) is expected to report second-quarter earnings of 12 cents a share, according to a survey of analysts by Thomson Financial.
Brown Shoe Co. (BWS) is expected to post earnings of 24 cents a share for the second quarter.
Chico's FAS Inc. (CHS) is expected to report second-quarter earnings of 26 cents a share.
Coldwater Creek Inc. (CWTR) is expected to report earnings of 12 cents a share for the second quarter.
Dollar Tree Stores Inc. (DLTR) is expected to post earnings of 33 cents a share for the second quarter.
Fred's Inc. (FRED) is expected to report second-quarter earnings of 9 cents a share.
Joy Global Inc. (JOYG) is expected to post earnings of 70 cents a share for the third quarter.
Novell (NOVL) is expected to report third-quarter earnings of 2 cents a share.
TiVo (TIVO) is expected to report a second-quarter loss of 5 cents a share.
Williams-Sonoma Inc. (WSM) is expected to post earnings of 16 cents a share for the second quarter.
After Tuesday's closing bell, Google (GOOG) said that Chief Financial Officer George Reyes plans to leave the company. See full story.
Amgen Inc. (AMGN) said a U.S. District Court ruled that a pegylated-erythropoietin, or peg-EPO, product by Roche Holding AG (RHHBY) infringes on a patent for Amgen's pharmaceutical compositions. A summary judgment was granted in favor of Amgen on certain Roche defenses, the company said. The court will hear additional infringement claims and Roche's counter-arguments as the case proceeds to trial Sept. 4. Amgen also said in a statement that it believes Roche's peg-EPO product "provides no clinical or patient benefit" over its Epogen and Aranesp therapies, which are used to treat anemia.
Applied Signal Technology Inc.'s (APSG) fiscal third-quarter net income rose to $977,000, or 8 cents a share, from $924,000, or 8 cents a share, a year earlier. The Sunnyvale, Calif., provider of advanced digital signal processing products and services said revenue for the quarter ended Aug. 3 was flat at $39.5 million. On average, analysts polled by Thomson Financial expected earnings of 14 cents a share and revenue of $42 million. New orders received during the latest period were $74.1 million, up from $30.2 million a year earlier.
Aruba Networks Inc. (ARUN) reported a fourth-quarter net loss of $3.35 million, or 4 cents a share, compared with a net loss of $1.45 million, or 11 cents a share, during the year-ago period. There were 75.6 million shares outstanding during the quarter versus 12.7 million last year. Excluding the impact of stock-based and in-process research and development expenses, earnings were $2 million, or 2 cents a share. The Sunnyvale, Calif.-based provider of networks and secure mobility services said revenue for the three months ended July 31 rose to $41.7 million from $23.9 million. Analysts polled by Thomson Financial had forecast, on average a per-share profit of a penny on revenue of $40 million.
Aspreva Pharmaceuticals Corp. (ASPV) changed the sales tracking methodology it uses as part of its CellCept pact with Roche Holding AG (RHHBY) . The Victoria, B.C., global pharmaceutical company reset the baseline for its calculation of royalty revenue to CHF 63 million due to the modifications. Aspreva doesn't believe the changes will affect its revenue and reaffirmed its 2007 revenue forecast of $245 million. Aspreva does expect to incur a $20 million charge pursuant to a separate CellCept agreement with Roche.
Boeing Co. (BA) said it has been awarded a NASA contract valued at roughly $514.7 million to produce the upper stage of the Ares I crew launch vehicle. The Ares I will launch the Orion crew exploration vehicle under NASA's Constellation program that plans to take astronauts to the moon by 2020. Boeing said it will produce from two to six upper stages per year during regular production, depending on NASA requirements. If all options are exercised through 2017, the company said it could produce as many as 23 upper stages.
Borders Group Inc. (BGP) reported a second-quarter net loss of $25.1 million, or 43 cents per basic share, compared with a net loss of $18.4 million, or 29 cents per basic share, during the year-ago period. On an operating basis, the loss was $15.3 million, or 26 cents per basic share, versus an operating loss of $14.5 million, or 23 cents per basis share, last year. The Ann Arbor, Mich.-based retailer of books, music and movies said revenue rose to $956.7 million from $866.3 million. Analysts polled by Thomson Financial had forecast, on average, a per-share loss of 34 cents on revenue of $916 million. Same-store sales at domestic Borders superstores rose 4.6%, primarily driven by record "Harry Potter" sales, the company said. Comparable sales at the Waldenbooks segment were up 6.2% for the quarter, and international same-store sales rose 8.2%, Borders said.
Dillard's Inc. (DDS) reported that it swung to a second-quarter net loss of $25.2 million, or 31 cents a share, from a year-ago net profit of $15.7 million, or 20 cents a share. Revenue in the 13 weeks ended Aug. 4 fell to $1.69 billion from $1.73 billion, the Little Rock, Ark.-based department store chain said, as same-store sales declined 3%. Analysts polled by Thomson Financial were expecting, on average, a per-share loss of a penny on revenue of $1.67 billion. The company said lackluster sales during the quarter necessitated higher markdown activity in order to maintain acceptable inventory levels.
Dycom Industries Inc. (DY) reported fourth-quarter net earnings of $14.3 million, or 35 cents a shares, up 42% from $10.1 million, or 25 cents a share, during the year-ago period. The Palm Beach Gardens, Fla.-based provider of contracting services said contract revenue rose to $317.3 million from $253.2 million. Analysts polled by Thomson Financial had forecast, on average, a per-share profit 32 cents on revenue of $309 million. The company also said it expects first-quarter per-share earnings of 31 cents to 37 cents on revenue of $310 million to $330 million. Separately, Dycom said it has authorized the buyback of up to $15 million of its common shares over the next 18 months.
FMC Corp. (FMC) said it has executed a new, five-year $600 million unsecured credit agreement with a group of lenders, with the option to increase the facility to $1 billion. The agreement replaces an existing $600 million unsecured credit agreement entered into in June of 2005 and provides for improved pricing and other terms, the Philadelphia-based chemical company said.
Global Crossing Ltd. (GLBC) said that STT Crossing Ltd, a subsidiary of Singapore Technologies Telemedia, on Monday increased its equity and voting interests in Global Crossing to 66.2%. STT Crossing converted $250 million of convertible notes into roughly 16.58 million shares of common stock. The shares included 8.81 million warrants, which were immediately converted into common stock. The conversion is part of a recapitalization plan that Global Crossing announced in May. Florham Park, N.J.-based Global Crossing is a provider of telecommunications products and services.
MGI Pharma Inc. (MOGN) said it has agreed to acquire the development rights to AKR-501, a molecule being developed for the treatment of thrombocytopenia, from AkaRx Inc. Thrombocytopenia is characterized by an abnormally low level of circulating platelets. Under the agreement, MGI has also obtained an option to acquire AkaRx at any time up to Jan. 8, 2010. MGI expects to make $45 million in upfront payments and, it the company decides to acquire AkaRx, MGI would make additional payments of roughly $255 million. As part of the deal, MGI has also obtained rights to AKR-201, a metabolite of thyroid hormone targeting thyroid cancer. MGI now expects 2007 R&D expense of roughly $73 million, and 2008 adjusted R&D expense of $85 million. For 2007, the company still expects Dacogen sales of around $115 million, and positive adjusted operating income.
Micros Systems Inc.'s (MCRS) fiscal fourth-quarter net income rose 28% to $27.4 million, or 66 cents a share, from $21.4 million, or 53 cents a share, a year earlier. Excluding share-based payment charges, earnings were $31.2 million, or 75 cents a share, compared with $23.4 million, or 58 cents a share. Revenue for the Beltsville, Md., hospitality industry computer systems company increased 16% to $221.6 million from $191.8 million in the year-ago period, boosted by service revenue. On average, analysts polled by Thomson Financial expected per-share earnings of 69 cents, excluding share-based compensation, on revenue of $221 million. Micros said it expects fiscal first-quarter net income of $18.5 million to $19 million, or 43 cents to 45 cents a share.
Pike Electric Corp.'s (PEC) fiscal fourth-quarter net income rose 86% to $5.57 million, or 17 cents a share, from $3 million, or 9 cents a share, a year earlier on profitable contract negotiations and the elimination of certain unprofitable accounts. The Mount Airy, N.C., electric distributor's revenue for the quarter ended June 30 fell 7.5% to $144.3 million from $156.1 million a year ago, hurt by a 13% decline in core power line revenue. Analysts polled by Thomson Financial, on average, predicted fourth-quarter earnings of 17 cents a share and revenue of $154.5 million. Pike Electric expects 2008 core power line revenue to range from $550 million to $560 million and storm restoration revenue of $50 million to $70 million.
Republic Airways Holdings Inc. (RJET) said it has authorized the repurchase of up to $100 million of stock over the next 12 months. Republic Airways is based in Indianapolis.
Seagate Technology (STX) raised its fiscal first-quarter earnings and revenue targets Seagate said it expects to earn between 57 cents and 61 cents a share on revenue in a range of $3.15 billion to $3.25 billion. The company had earlier forecast a profit between 35 cents and 39 cents a share on $2.9 billion to $3 billion in revenue. Seagate said its results were helped by several factors, including high demand for disk drives and more-favorable unit prices. Excluding $27 million in charges and other items, Seagate expects to earn between 62 cents and 66 cents a share.
Semtech Corp. (SMTC) reported second-quarter net earnings of $9.02 million, or 13 cents a share, up 7% from $8.43 million, or 11 cents a share, during the year-ago period. Pro forma earnings were $12.5 million, or 18 cents a share, compared with $11.8 million or 16 cents a share, last year. The Camarillo, Calif.-based maker of analog and mixed-signal semiconductors company said revenue rose to $67 million from $64.9 million. Analysts polled by Thomson Financial had forecast, on average, a per-share profit of 14 cents on revenue of $63 million. For the third quarter, Semtech said it expects per-share earnings of 15 cents to 16 cents, or 21 cents to 22 cents on a pro forma basis, on revenue that's up 14% to 16% sequentially.
Fitch Ratings downgraded the ratings of homebuilders Standard Pacific Corp. (SPF) , M/I Homes Inc. (MHO) , Hovnanian Enterprises Inc. (HOV) and Lennar Corp. (LEN) , and revised its rating outlook on Ryland Group Inc. (RYL) , Toll Brothers Inc. (TOL) and D.R. Horton Inc. (DHI) to negative stable. The agency said the downgrades reflect "the current difficult U.S. housing environment," negative trends in the companies' operating margins and meaningful deterioration in their credit metrics. The agency said the new negative outlook for Ryland, Toll and D.R. Horton reflect "a more challenging outlook for homebuilders during the balance of calendar 2007 (largely due to disruptions and tightening of standards in the mortgage market) and probable future weakening in the housing market in 2008."
The9 Limited (NCTY) reported second-quarter net earnings of 50.6 million yuan ($6.65 million), or 1.90 yuan (25 cents) a share, down 40% from 84.3 million yuan, or 3.42 yuan a share, during the year-ago period. Earnings before interest, taxes, depreciation and amortization were 108.6 million yuan ($14.3 million) compared with 124.7 million yuan last year. The Chinese online game company said revenue for the three months ended June 30 rose to 284.6 million yuan ($37.4 million) from 271.3 million yuan.