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I'm net long, but about 50% cash at this time. FWIW, I play the market both short & long...... depending on the trend du jor.........
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13:56 ET Investors throw winners into the fire; a good sign? : Much of the destruction occurring today is taking place in the market's leadership stocks. As tech was breaking down, groups such as Healthcare, Retail, Defense, and Homebuilding were consistently breaking out to new highs. One example is Johnson & Johnson (JNJ). After breaking out to a new 52-wk high just over 3 months ago, stock has given back its entire Sept-Mar gain, today trading at a new 52-wk low. Biggest downside standouts on the session are Drug Distributors: ABC -10.6%, MCK -5.5%, CAH -4.4%; Retail: CHBS -8.1%, AZO -4.8%, S -5.4%; HMOs: HUM -5.8%, WLP -4.4%, TGH -2.7%; Truckers: KNGT -8.4%, HTLD -6.3%, ROAD -5%; Homebuilders: HOV -5.7%, TOL -4.1%, LEN -4.1%. Could this be the capitulation that Mr. Biggs is referring to.
13:47 ET Hearing that Morgan Stanley is raising equity allocation : We are hearing that Morgan Stanley's Barton Biggs is raising his equity allocation, saying that now is the time to step up and overweight equities; apparently, Biggs is seeing capitulation in the mkt, and believes that the mkt is being affected by Iraq.
13:26 ET Rumor Mill: Intel and the semi's : Hearing trading floor chatter about today's strength in INTC and the SOX; one rumor is that INTC is going to issue a positive preannouncement after the close, which seems dubious given that INTC guided down at its mid-qtr update and AMD has warned twice this qtr; another rumor is that a prominent analyst who has been bearish on INTC is going to upgrade the stock after the close, yet we're also hearing skepticism about that rumor as well.
13:21 ET Sector Watch: Utility : This group, over the last three sessions, has plunged over 10% lower but is currently on the mend despite a warning from PEG (+2.3%) this morning. Pacing the way higher are: EIX +6.7%, XEL +5.8%, DUK +5.6%, AEP +3.5% and TXU +2.5%. The Utility HOLDRs (UTH at 72.6, +3%) is facing initial resistance at 72.8 with a stronger ceiling at 74.9/75.
13:11 ET Comcast expects a significant capex reduction (CMCSK) 21.78 +0.24: Speaking at a Allen & Company Conference, Comcast says it expects a significant reduction in cable capital spending to drive free cash flow as a result of the 95% completion of the cable rebuild in 2001.
US dollar puking big time.
VIX @ 41.32........
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VIX broke 40 just a moment ago..........
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17:22 ET Yahoo! (YHOO) 12.19 -0.51: -- Update -- On call, says it feels confident it will achieve double-digit yr/yr growth in marketing services during 2H02... YHOO +0.30 at 12.49
17:14 ET McAfee.com raises Q3 outlook -- Dow Jones (MCAF) 13.85 -0.32: -- Update -- Current Multex consensus estimate calls for Q3 earnings of $0.08 per share. MCAF +0.45 vs the 4 pm ET close.
17:11 ET After Hours Indications : The late session tone is mixed. S&P futures at 919, trade two points below fair value while the Nasdaq 100 after hours indicator is higher by 5.2 points.
Yahoo! Reports Second Quarter 2002 Financial Results
Yahoo! Delivers Year over Year Growth and GAAP Net Income
Revenue of $226 Million and EBITDA of $36 Million
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 10, 2002--Yahoo! Inc. (Nasdaq:YHOO - News) today reported results for the second quarter ended June 30, 2002. Net revenues for the second quarter totaled $225.8 million, a 24 percent increase over the $182.2 million reported in the same period last year. EBITDA (earnings before interest, taxes, depreciation, amortization and stock compensation expense) was $36.1 million, compared to an EBITDA loss of $38.0 million for the same period last year, which included $45.5 million of restructuring and acquisition-related costs.
Net income on a GAAP (Generally Accepted Accounting Principles) basis for the second quarter of 2002 was $21.4 million or $0.03 per diluted share, compared with a net loss of $48.5 million or $0.09 per diluted share for the same period last year.
Net revenues for the six months ended June 30, 2002 totaled $418.5 million, a 15 percent increase over the $362.4 million reported in the same period last year. EBITDA was $60.5 million, compared with an EBITDA loss of $37.1 million for the same period last year. Income on a GAAP basis, before the cumulative effect of the accounting change for the implementation of Financial Accounting Standard 142, was $31.9 million or $0.05 per diluted share compared to a net loss of $60.0 million or $0.11 per diluted share for the same period last year. The cumulative effect of the accounting change resulted in a one-time goodwill impairment charge of $64.1 million in the first quarter of 2002. Net loss on a GAAP basis for the six months ended June 30, 2002, including this one-time charge, was $32.3 million or $0.05 per diluted share.
"Yahoo! has maintained an intense focus on achieving its strategic goals and executing against its business plan. We are very pleased that our efforts have resulted in both strong top-line and EBITDA growth this quarter despite a tough overall economic environment," said Terry Semel, chairman and chief executive officer, Yahoo! Inc. "As we execute against our business plan, we expect to continue to deliver strong results and profitable growth through the remainder of the year."
Second Quarter 2002 Financial Highlights
Revenues: In the second quarter of 2002, Yahoo! reported net revenues of $225.8 million, a 24 percent increase from the same period last year.
Marketing Services revenues totaled $135.7 million, a four percent decrease from the same period last year, which primarily results from a decrease in renewals of previous advertising arrangements from Internet companies, partially offset by an increase in revenues from small-to-medium sized companies realized through Yahoo!'s sponsored search services and inside sales organization.
Fees and Listings revenues totaled $74.1 million, a 109 percent increase compared to the same period last year. This increase was primarily driven by the HotJobs acquisition in the first quarter of 2002, the monetization of Yahoo! Personals, as well as an increase in the number of paying customers for Yahoo!'s other fee- and listings-based services.
Transactions revenues totaled $16.0 million, a 179 percent increase compared to the same period last year. This increase was driven primarily by increased commerce transactions enabled on the Yahoo! network and a shift in some marketing service and fee-based arrangements towards performance-based agreements.
United States revenues for the quarter totaled $187.5 million, a 26 percent increase compared to the same period last year. International revenues were $38.3 million, a 16 percent increase compared to the same period last year. For the second quarter, international revenues represented 17 percent of total revenues, compared to 18 percent for the same period last year.
EBITDA: In the second quarter of 2002, Yahoo! reported EBITDA of $36.1 million or 16 percent of net revenues, versus the $38.0 million EBITDA loss reported for the same period last year. Excluding the $45.5 million of restructuring and acquisition-related costs recorded in the second quarter of 2001, EBITDA for that period would have been $7.5 million, or four percent of net revenues. The favorable comparison to the same period last year is primarily the result of the 24 percent revenue increase as described above. Recurring costs and expenses included in EBITDA increased only nine percent, which included a full quarter of HotJobs operating costs, partially offset by cost savings from Yahoo!'s 2001 restructuring programs and reduced discretionary spending.
United States EBITDA for the quarter was $39.7 million, or 21 percent of United States net revenues, which compares favorably to the $27.7 million EBITDA loss reported for the same period last year.
International EBITDA loss for the quarter was $3.6 million, a $6.7 million, or 65 percent reduction from the EBITDA loss reported for the same period last year.
Depreciation and Amortization: Depreciation expense for the second quarter of 2002 was $21.5 million, a $4.8 million increase compared to the same period last year primarily resulting from the HotJobs acquisition.
Amortization expense for the second quarter 2002 was $6.0 million, a $9.6 million reduction from the same period last year, primarily resulting from the discontinuance of goodwill amortization in accordance with the adoption of Financial Accounting Standard 142.
Other income, net: In the second quarter of 2002, Yahoo! reported other income, net of $29.2 million, which compares favorably with the $26.5 million recorded in the same period last year. Included in these reported amounts for the second quarter of 2002 and 2001 were investment gains, net of $4.9 million and $3.0 million, respectively. In addition to the higher net investment gains, the $2.7 million increase compared to the same period last year was primarily the result of greater earnings from Yahoo!'s unconsolidated equity interests as well as foreign exchange gains, partially offset by a decrease in interest income related to a smaller average investment balance this quarter and a decline in interest rates as compared to the same period last year.
Provision for income taxes: Yahoo! reported a provision for income taxes of $15.5 million in the second quarter of 2002, reflecting a 42 percent effective tax rate. The effective tax rate differs from the statutory federal rate this quarter principally due to foreign losses, for which no tax benefit is provided, and tax accounting differences associated with certain investments.
Business Outlook
"As we complete the first half of 2002, we are pleased with our report card. Yahoo!'s continued evolution to a more robust and sustainable business model is supported by strategic focus and financial discipline. We continue to seek new ways to provide deeper value to our vast consumer base, and we are also attempting to build greater revenue, margins and returns from that core asset," said Susan Decker, chief financial officer, Yahoo! Inc. "As we measure our progress, we will continue to focus on expanding revenues per user and growing revenue per employee, both important metrics which support our key objective to maximize free cash flow."
The following information is based on current information as of July 10, 2002.
Yahoo! expects revenues for the third quarter 2002 to be between $225 and $250 million, and to be between $900 and $940 million for the full year 2002. EBITDA (earnings before interest, taxes, depreciation, amortization and stock compensation expense) is expected to be between $38 and $48 million for the third quarter 2002 and to be between $140 and $165 million for the full year 2002.
Capital expenditures are expected to be between $10 and $15 million for the third quarter 2002, and to be between $40 and $50 million for the full year 2002. Depreciation expense is expected to be between $22 and $24 million for the third quarter 2002 and to be between $85 and $90 million for the full year 2002.
Yahoo!'s business outlook as of today will be available on the Company's Investor Relations Web site throughout the current quarter. It is currently expected the full business outlook will not be updated until the release of Yahoo!'s next quarterly earnings announcement; however, Yahoo! may update the full business outlook or any portion thereof at any time for any reason.
Leading Internet Brand and Global Audience
Yahoo!'s brand leadership and broad audience support the Company's leadership position and success in efforts to build deeper relationships with consumers. Yahoo! is the No.1 Internet brand in the United States, according to Brand Asset Valuator® (Young and Rubicam, May 2002), reflecting the fact that consumers prefer Yahoo! over any other brand on the Internet, and providing a strong basis for increasing consumer loyalty and usage.
During the quarter, Nielsen//NetRatings (May 2002) ranked Yahoo!'s global network the world's most trafficked Internet destination for the 24th consecutive month, based on unique audience, total time spent, reach, and total page views. In addition, Yahoo! was recognized as the most trafficked Internet brand in the United States, with the greatest breadth of usage, having 20 Yahoo! properties ranked among the top three in their respective vertical categories.
Yahoo!'s global audience was approximately 238 million unique users (including 42 million reported by Yahoo! Japan) in June 2002 compared to approximately 200 million (including 28 million reported by Yahoo! Japan) in June 2001. In addition, approximately 83 million active registered users, excluding Yahoo! Japan, logged onto Yahoo's global network during June 2002, compared to approximately 61 million in June 2001.
"The brand strength is the basis for our users' loyalty, high usage levels, and preference of Yahoo! over any other Internet destination worldwide. We are methodically taking steps to improve the consumer experience on Yahoo! while driving deeper relationships with them. By doing so, we hope to improve the quality of the traffic across the network in order to better monetize our opportunity," said Semel.
Quarterly Conference Call
Yahoo! will host a conference call to discuss second quarter results at 5:00 p.m. Eastern Time today. A live Webcast of the conference call and related financial information can be accessed through the "What's New" area of the Company's Investor Relations Web site at http://docs.yahoo.com/info/investor/. In addition, an archive of the call can be accessed through the "Conference Calls" area at the same site. A replay will be available for 48 hours following the conference call by calling 800-633-8284, reservation number: 20087966.
About Yahoo!
Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 World properties and is available in 13 languages.
This press release and its attachments contain forward-looking statements that involve risks and uncertainties concerning Yahoo!'s expected financial performance (as described without limitation in the Business Outlook section and quotations from management in this press release), as well as Yahoo!'s strategic and operational plans. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the slower spending environment for advertising sales; the actual increases in demand by customers for Yahoo!'s premium and corporate services; general economic conditions; risks related to the integration of recent acquisitions; the ability to adjust to changes in personnel, including management changes; and the dependence on third parties for technology, content and distribution. All information set forth in this release and its attachments is as of July 10, 2002, and Yahoo! undertakes no duty to update this information. More information about potential factors that could affect the Company's business and financial results is included in the Company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2001 and Quarterly Report on Form 10-Q for the three-month period ended March 31, 2002, including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. Additional information will also be set forth in those sections in Yahoo!'s Quarterly Report on Form 10-Q for the three-month period ended June 30, 2002, which will be filed with the SEC in the near future.
Note to Editors: Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.
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http://biz.yahoo.com/bw/020710/100341_1.html
16:39 ET McAfee.com beats by three cents (MCAF) 13.85 -0.32: Reports Q2 (Jun) earnings of $0.10 per share, $0.03 better than the Multex consensus of $0.07; revenues rose 43.8% year/year to $20.7 mln vs the $21 mln consensus.
VIX @ 39.08
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14:11 ET Yahoo! may beat estimates and raise targets, but stock rich-- Merrill Lynch (YHOO) 12.70: Merrill Lynch believes that YHOO may report results tonight ahead of ests and at the high end of the co's target range; firm also thinks YHOO will raise targets for 2H02 due to the extension of the OVER deal; however, even after the likely est increases, stock remains richly valued. Maintains Neutral rating.
July 09, 2002
INTERNATIONAL BUSINESS MACHINES CORP (IBM)
form 8-K
Item 5. Other Events
The company announced on June 4, 2002, the decision to sell its disk drive operations to Hitachi, Ltd. which under generally accepted accounting principles will be accounted for as a discontinued operation.
The financial results from prior periods will be presented to conform with this accounting treatment. The company is publishing quarterly consolidated financial earnings results for 2001 and the first quarter of 2002 in order to facilitate an analysis by users of the company's financial statements under this format. The financial results reported as discontinued operations include the external original equipment manufacturer, (OEM) hard disk drive business and charges related to hard disk drives used in the company's e-server and e-storage products that were recorded in the Technology segment. The discontinued operations results do not reflect hard disk drive shipments to IBM internal customers. These results are included in Exhibit I of this Form 8-K. In addition, segment pre-tax income results from continuing operations are provided for the same periods in Exhibit II of this Form 8-K. Exhibit III of this Form 8-K is the registrant's press release dated June 4, 2002, regarding a definitive agreement between Hitachi and IBM on the transfer of their hard disk drive operations to a new standalone company under Hitachi ownership.
Also, on June 4, 2002, the company announced that it would record pre-tax charges of approximately $2.0B to $2.5B, primarily in the second quarter, associated with the company's exit from the hard disk drive business, write-offs of assets in the Microelectronics business, and charges related to productivity initiatives, principally workforce reductions. IBM will describe these actions in additional detail when the company announces second quarter results on July 17, 2002. Exhibit IV of this Form 8-K is the registrant's press release dated June 4, 2002, regarding actions to strengthen the company's strategic and competitive position.
IBM's web site (www.ibm.com) contains a significant amount of information about IBM, including financial and other information for investors (www.ibm.com/investor/). IBM encourages investors to visit its various web sites from time to time, as information is updated and new information is posted.
http://biz.yahoo.com/e/020709/ibm.html
15:18 ET Veritas Software may be losing share-- Pac Crest (VRTS) 18.52 -0.79: Pacific Crest is out with some cautious comments on VRTS, saying the co may be losing mkt share to privately-held competitor Commvault, which told the firm it won 97 deals in the latest qtr, up from 60.
15:09 ET Preannouncement rumors : The market is rife with rumors about preannouncements: General Electric (GE) is getting the most play, though it announces results Friday making a preannouncement highly unlikely - it could be that there are bets on downward guidance; unusual activity in out-of-the-money puts has been noted on GE. IBM also mentioned as possibly warning; they warned last quarter at about this time (Apr 8). Finally, a number of software players mentioned: SEBL, PSFT, SAP - all of which are certainly plausible given the many warnings already seen in the sector.
14:53 ET Micron: positive comments from Lehman (MU) 21.71 +0.11: Lehman's Dan Niles says that MU was relatively upbeat at their London analyst meeting, saying inventories have now declined to the lower end of a 4-6 week range and pricing is in a range of $2.50-$3.00; Micron is also seeing their OEMs starting to use greater memory configurations as a selling feature again, and as such contracts have some potential to move higher; also, capex is expected to increase to roughly $1.4 bln in FY03 within a prior range of $1.0-$1.5 bln. Reiterates Strong Buy rating and $25 price target.
12:15 ET Fox reports that shooting incident a 'robbery attempt gone wrong'
Reuters Market News
U.S. consumer credit rose $9.5 billion in May
WASHINGTON, July 8 (Reuters) - Consumers accelerated their borrowing in May, with new loans for big ticket items like cars leading the way, the Federal Reserve reported on Monday.
The Fed said total consumer credit oustanding rose by $9.5 billion in May to a seasonally adjusted $1.706 trillion. That followed a revised $8.6 billion increase in borrowing in April, down slightly from the previously reported rise of $8.8 billion.
The May increase in borrowing, the biggest since November, was led by a rise in nonrevolving credit, reflecting closed-end loans for cars, boats, education expenses and vacations. Those types of loans rose by $7.1 billion after a $4.2 billion rise in April.
The growth of revolving credit, which includes credit and charge cards, slowed in May to a gain of $2.4 billion from a $4.4 billion increase in April.
The gain in overall consumer credit growth in May exceeded the expectations of Wall Street economists surveyed by Reuters, who had projected a $5.6 billion increase.
http://biz.yahoo.com/rf/020708/economy_credit_1.html
I seem to have fallen through some type of portal..........
I was in this turnip patch over by Silicon Investor........ and the next thing I know I'm in a different turnip patch......
OOF
Hi Zeev
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WOW! Now this is different. Very nice Reid.
And to think I am amused with my little text/font faces :-
Got this one bookmarked.
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Tick, tick, tick...... You're wrong again :-
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=15807804
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