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15:15 ET Newport breaking to lows of day on earnings report (NEWP) 11.30 -1.26: Co reports a Q3 loss from continuing operations of $1.55 per share. The results include an inventory reserve charge of $1.13 per share and valuation reserve charge of $0.40. Excluding these items, the Q3 loss appears to be $0.02, which would be in line with consensus. Sales were $45.5 mln vs consensus of $45.2 mln. For Q4, co sees sales of $32-$36 mln (consensus $45.65 mln). Attributes Q4 outlook to low recent order intake levels, the impact of recent order cancellations and the apparent delay in the semi industry recovery.
17:55 ET Texas Instruments speaks of limited visibility (TXN) 17.12 +0.02: -- Update -- On call, says it has limited visibility in the current environment with historically short lead-times... In Q&A portion of call, says order shortfall was primarily in the PC and PC market peripherals segments... thinks it is too early to comment on Q1... TXN -2.90 at 14.22
18:04 ET Texas Instruments not likely to raise 2003 capex (TXN) 17.12 +0.02: -- Update -- In response to question about 2003 capex forecast, management says it still hasn't put together a formal annual plan but that it's hard to see at this point why it would need to be higher than 2002 capex, which will be $800 mln... TXN -2.87 at 14.25
18:11 ET Texas Instruments likes Q4 wireless prospects (TXN) 17.12 +0.02: -- Update -- On call, says that as Q3 progressed, wireless was better in terms of Q3 growth than it had expected at the beginning of the quarter... for Q4, expects high single-digit sequential growth again for wireless business in Q4.. TXN -2.90 at 14.22
Reuters
Texas Instruments posts 3rd-qtr profit, revs rise
Monday October 21, 4:36 pm ET
DALLAS, Oct 21 (Reuters) - Texas Instruments Inc. (NYSE:TXN - News) on Monday reported a third-quarter profit versus a year-ago loss that was in line with expectations and its own forecast as revenue at the world's No. 1 maker of semiconductors for cellular phones rose 22 percent.
Dallas-based Texas Instruments said it had net income of $188 million, or 11 cents a share, compared with a year-ago net loss of $117 million, or 7 cents. Revenue rose to $2.25 billion from $1.85 billion.
Excluding certain nonstandard items, Texas Instruments said it had a profit of 9 cents. On that basis, analysts had expected a per-share profit of 10 cents, within a range of 9 cents to 11 cents, on revenue of $2.27 billion, according to Thomson First Call.
http://biz.yahoo.com/rc/021021/tech_texasinstruments_earns_1.html
16:09 ET Veritas Software beats by a penny, updates Q4 guidance (VRTS) 15.90 +0.44: Reports Q3 (Sep) earnings of $0.14 per share, $0.01 better than the Multex consensus of $0.13; revs were $365.7 mln, vs consensus of $357.6 mln. Expects EPS of $0.12-$0.14 (consensus is $0.14) and says it is comfortable with First Call's rev consensus of $377 mln.
13:40 ET Nasdaq touches new one-month high : -- Technical -- Index has broken to its best levels since September 12th. Currently trading at 1302, look for initial resistance at 1307 followed by additional overhead at 1315. To the downside, look for initial support now at 1300 followed by an additional floor in the area of 1295.
13:22 ET Crude oil comes under pressure : December crude oil has backed up 4.4% today, taking out support in the $28.80 area and in the process retreating to its lowest level in six weeks. Being attributed for the steep decline in the commodity is statement by Sec of State Colin Powell that the U.S. is more concerned with disarming Iraq than achieving regime change. Decline in crude is carrying over to the Oil Services complex (OSX -0.6%). But group has made a move off its lows as broader market tacks on gains
14:16 ET Beacon Hill to close down biggest hedge funds - WSJ : The Wall Street Journal Online reports that Beacon Hill Asset Mgmt, one of the biggest hedge-fund managers in the bond biz, has told investors that it suffered losses of more than 50%, or more than $400 mln, in just the past few months. Things have gotten so bad that Beacon Hill now is closing down its biggest hedge funds and selling its remaining positions, and has suspended investor redemptions for the next six months.
14:08 ET Cisco Systems could miss their numbers - Pac Crest (CSCO) 10.40 +0.23: -- Update -- Pacific Crest says there is a fairly high probability that CSCO may miss their targets; co told firm that the IT environment has deteriorated, and firm believes that the Oct qtr is weak and the Jan qtr will be even weaker; firm also says that one of CSCO's EMS partners said business is very slow and gray mkt listing are up 5% week/week, which is another negative sign. (Note that Pac Crest cut ests for CSCO this morning... see 9:31 comment.)
Reuters Company News
Mercury Interactive sees Q4 in line with Wall St.
Thursday October 17, 5:33 pm ET
NEW YORK, Oct 17 (Reuters) - Software testing services and products maker Mercury Interactive Corp.(NasdaqNM:MERQ - News) on Thursday said it expects fourth-quarter earnings to be in line with Wall Streets average outlook, after reporting a third-quarter that saw revenue grow 16 percent.
Mercury said it sees fourth-quarter earnings, excluding items, to be between 17 cents a share and 22 cents a share. Analysts, on average, had expected the company to earn 20 cents a share, with 25 estimates between 18 cents and 25 cents a share, according to Thomson Financial First Call.
Mercury said it expects fourth-quarter revenue to be between $105 million to $115 million. Wall Street had expected the company to earn an average of $106.45 million with a range of 16 estimates between $101.8 million to $115.90 million.
http://biz.yahoo.com/rc/021017/tech_mercuryinteractive_outlook_1.html
Zeev,
I'm in at $21.63 on MERQ. I have a limit order for $24.05. You say you'd like north of $25.
Think you get it tonight?
TIA
Tim
17:04 ET Applied Micro reinstates $200 mln buyback (AMCC) 3.72 +0.39: Announces that its Board of Directors has reinstated its stock repurchase program and approved the repurchase of up to $200 mln of its common stock.
Microsoft Announces Record First Quarter Revenue
10/17/02 1:15 PM
Source: PR Newswire
Results Driven by Strong Customer Adoption of Windows XP,
Office XP and .NET Enterprise Servers
REDMOND, Wash., Oct. 17 /PRNewswire-FirstCall/ -- Microsoft Corp. (Nasdaq: MSFT) today announced revenue of $7.75 billion for the quarter ended Sept. 30, 2002, a 26 percent increase over revenue of $6.13 billion for the same quarter last year. Operating income for the first quarter was $4.05 billion, compared to $2.90 billion in the same period last year. Net income and diluted earnings per share for the first quarter of fiscal year 2003 were $2.73 billion and $0.50, which included an after-tax charge for investment impairments of $291 million or $0.05. For the same period of the previous year, net income and diluted earnings per share were $1.28 billion and $0.23, which included an after-tax charge for investment impairments of $1.22 billion.
"Results for the first quarter were exceptionally strong, exceeding our expectations. During the quarter, we saw broader customer adoption of our licensing programs than we anticipated, as customers recognized the value of entering into long-term licensing agreements for our products. This strength in licensing led to solid growth for Windows(R) XP, Office XP and .NET Enterprise Servers," said John Connors, chief financial officer at Microsoft. "Consistent with our view at the outset of this year, the global economic outlook continues to be uncertain, however we remain committed to making the investments necessary to drive long-term product innovation and customer value across our businesses."
Robust sales of the Windows XP operating system drove Client revenue growth of 33 percent, with the business version of Windows accounting for 63 percent of all operating systems sales. Since its launch on Oct. 25, 2001, over 67 million copies of Windows XP have been sold by computer manufacturers on new personal computers and by retailers. During the quarter Microsoft demonstrated its commitment to making Windows XP the platform for innovation with the roll-out of Service Pack 1, containing important security enhancements. Also announced was the new Windows Media(TM) 9 Series, which will power the next wave of digital media experiences.
Information Worker turned in healthy revenue growth of 26 percent, reflecting customer adoption of Microsoft Office XP through multi-year licensing programs. Customers acquiring Office this quarter included ChevronTexaco, Lockheed Martin, MetLife, Newell Company (Rubbermaid) and the US Department of the Army, Program Executive Office, Aviation.
Revenues from Server Platforms grew 14 percent in the first quarter, driven by superior performances across a breadth of server products including the Windows 2000 Server and Microsoft(R) SQL Server(TM) 2000 family of products. As in recent quarters, customers purchased an increasing number of servers through multi-year licensing programs. Customers purchasing Microsoft servers this quarter included American Family Life Assurance Company (AFLAC), Bayer Corporation, ChevronTexaco Information Technology Company and Unisys Corporation. Windows 2000 Server revenue growth was fueled by the combination of strong volume licensing sales and continued market share gains by Intel(R)- based server hardware over proprietary Unix products. Further, early excitement for the upcoming launch of Windows .NET Server 2003 continued to build, as over 200,000 customers signed up for the product through the Customer Preview Program in the first 60 days of the program's availability. SQL Server 2000 continued to gain market share, driven in part by increasing demand for SQL Server Enterprise Edition. The enterprise edition experienced 51 percent revenue growth during the quarter, reflecting acceptance of SQL Server for use in the most demanding enterprise environments.
For the quarter, MSN(R) saw significant revenue growth of 23 percent excluding Expedia in the prior period, driven by strong advertising sales and increased end-user subscriptions. To kick off the upcoming holiday season, MSN 8 launches on Oct. 24, 2002, and will offer the best online experience for consumers to date, including the most compelling communication tools and advanced parental controls. November brings the highly anticipated U.S. launch of Xbox Live, which will allow gamers to take full advantage of the built-in power of the Xbox, while demonstrating the ground-breaking advances Microsoft has made in interactive gaming. Over the next few months, a variety of innovative computing devices, such as Tablet PC, Windows XP Media Center Edition and the Windows Powered Smartphone 2002, will be introduced in conjunction with OEM partners to further broaden retail offerings.
Business Outlook
Management offers the following guidance for the quarter ending Dec. 31, 2002:
Revenue is expected to be in the range of $8.5 billion and $8.6 billion.
Operating income is expected to be in the range of $3.2 billion and $3.3 billion.
Diluted earnings per share is expected to be either $0.45 or $0.46.
Management offers the following guidance for the full fiscal year ending June 30, 2003:
Revenue is expected to be in the range of $32.2 billion and $32.6 billion.
Operating income is expected to be in the range of $14.1 billion and $14.4 billion.
Diluted earnings per share is expected to be in the range of $1.89 and $1.95.
Webcast Details
Microsoft will hold an audio webcast at 2:30 pm PDT (5:30 p.m. EDT) today with John Connors to discuss details regarding the company's performance for the quarter and other forward-looking information. The session may be accessed at http://www.microsoft.com/msft. The webcast will be available for replay through the close of business on Friday, Oct. 25, 2002.
Forward-Looking Statements
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as: entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, and reliance on sole source suppliers for key components of Xbox that could result in component shortages and delays in product delivery, any of which may cause revenues and income to fall short of anticipated levels; obsolete inventory or product returns by distributors, resellers and retailers; warranty and other claims on hardware products such as Xbox; changes in the rate of PC shipments; technological shifts; customer demand for our product and services; the support of third party software developers for new or existing platforms; the availability of competitive products or services such as the Linux operating system at prices below our prices or for no charge; the affects of the Consent Decree in United States v. Microsoft on the Windows operating system and server business, including those associated with protocol and other disclosures required by the Decree and the ability of PC manufacturers to hide end user access to certain new Windows features; the ability to have access to MSN service distribution channels controlled by third parties; the risk of unanticipated increased costs for network services; the continued ability to obtain or protect intellectual property rights; changes in product and service mix; maturing product life cycles; product sale terms and conditions; the company's ability to efficiently integrate acquired businesses such as Navision a/s; implementation of operating cost structures that align with revenue growth; the financial condition of our customers and vendors; unavailability of insurance; uninsured losses; adverse results in litigation; the effects of terrorist activity and armed conflict such as disruptions in general economic activity and changes in our operations and security arrangements; disruptions in hardware product assembly and distribution that may arise from shipping interruptions or slowdowns at west coast US ports; general economic conditions that affect demand for computer hardware or software; currency fluctuations; trade sanctions or changes to U.S. tax law resulting from the World Trade Organization decision with respect to the extraterritorial income provisions of U.S. tax law; and financial market volatility or other changes affecting the value of our investments, such as the AT&T securities held by Microsoft, that may result in a reduction in carrying value and recognition of losses including impairment charges.
For further information regarding risks and uncertainties associated with Microsoft's business, please refer to the "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Risk Factors" sections of Microsoft's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft's investor relations department at (800) 285-7772 or Microsoft's investor relations website at http://www.Microsoft.com/msft.
All information in this release is as of Oct. 17, 2002. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
Founded in 1975, Microsoft is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software -- any time, any place and on any device.
Microsoft, Windows, Windows Media, MSN and Xbox are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
Intel is a registered trademark of Intel Corporation in the United States and/or other countries.
Microsoft Corporation
Income Statements
(In millions, except earnings per share)
Three Months Ended
September 30
2001 2002
Revenue $6,126 $7,746
Operating expenses:
Cost of revenue 884 1,199
Research and development 1,013 1,094
Sales and marketing 1,145 1,220
General and administrative 187 183
Total operating expenses 3,229 3,696
Operating income 2,897 4,050
Losses on equity investees and other (30) (22)
Investment income/(loss) (980) 41
Income before income taxes 1,887 4,069
Provision for income taxes 604 1,343
Net income $1,283 $2,726
Earnings per share:
Basic $ 0.24 $ 0.51
Diluted $ 0.23 $ 0.50
Weighted average shares outstanding:
Basic 5,398 5,369
Diluted 5,567 5,458
Microsoft Corporation
Balance Sheets
(In millions)
June 30, 2002 Sept 30, 2002
Assets
Current assets:
Cash and equivalents $ 3,016 $ 5,338
Short-term investments 35,636 35,137
Total cash and short-term investments 38,652 40,475
Accounts receivable, net 5,129 4,450
Inventories 673 959
Deferred income taxes 2,112 2,401
Other 2,010 1,758
Total current assets 48,576 50,043
Property and equipment, net 2,268 2,189
Equity and other investments 14,191 13,580
Goodwill 1,426 2,855
Intangible assets, net 243 642
Other long-term assets 942 926
Total assets $67,646 $70,235
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,208 $ 1,189
Accrued compensation 1,145 851
Income taxes 2,022 3,307
Short-term unearned revenue 5,920 6,841
Other 2,449 1,569
Total current liabilities 12,744 13,757
Long-term unearned revenue 1,823 2,290
Deferred income taxes 398 152
Other long-term liabilities 501 520
Stockholders' equity:
Common stock and paid-in capital - shares
authorized 12,000; Shares issued and
outstanding 5,359 and 5,346 31,647 33,013
Retained earnings, including accumulated
other comprehensive income of $583 and $482 20,533 20,503
Total stockholders' equity 52,180 53,516
Total liabilities and stockholders' equity $67,646 $70,235
Microsoft Corporation
Cash Flows Statements
(In millions)
Three Months Ended
September 30
2001 2002
Operations
Net income $1,283 $2,726
Depreciation, amortization, and other non-cash items 282 297
Net recognized losses on investments 1,517 475
Stock option income tax benefits 415 376
Deferred income taxes (839) (611)
Unearned revenue 2,069 4,093
Recognition of unearned revenue (1,879) (2,743)
Accounts receivable 69 751
Other current assets (39) (37)
Other long-term assets 122 28
Other current liabilities 434 797
Other long-term liabilities (45) 20
Net cash from operations $3,389 $6,172
Financing
Common stock issued 391 539
Common stock repurchased (1,125) (3,497)
Net cash used for financing ($734) ($2,958)
Investing
Additions to property and equipment (150) (160)
Acquisition of companies, net of cash acquired 0 (870)
Purchases of investments (16,020) (26,685)
Maturities of investments 861 3,230
Sales of investments 11,840 23,588
Net cash used for investing ($3,469) ($897)
Net change in cash and equivalents (814) 2,317
Effect of exchange rates on cash and equivalents 5 5
Cash and equivalents, beginning of period 3,922 3,016
Cash and equivalents, end of period $3,113 $5,338
Microsoft Corporation
Channel and Business Division Revenue
(In millions)
Three Months Ended
September 30
2001 2002
Channels
Americas Region $2,345 $2,733
Europe, Middle East, and Africa Region 1,105 1,499
Japan and Asia-Pacific Region 692 860
OEM 1,984 2,654
Total revenue $6,126 $7,746
Business Divisions
Client $2,138 $2,851
Server Platforms 1,395 1,587
Information Worker 1,808 2,273
Business Solutions 74 106
MSN 430 427
CE/Mobility 14 17
Home and Entertainment 267 485
Total revenue $6,126 $7,746
Make Your Opinion Count - Click Here
http://tbutton.prnewswire.com/prn/11690X53219230
SOURCE Microsoft Corp.
Copyright 2000, PR Newswire
http://investor.cnet.com/investor/news/newsitem/0-9900-1028-20553044-0.html?tag=ltnc
Mercury Interactive Reports Third Quarter Results
10/17/02 1:06 PM
Source: PR Newswire
Announces Revenue of $97.9 Million and Pro Forma EPS of $0.16
SUNNYVALE, Calif., Oct. 17 /PRNewswire-FirstCall/ -- Mercury Interactive Corporation (Nasdaq: MERQ), the leading provider of software and services that optimize business processes, today reported results for the third quarter ended September 30, 2002.
Revenue for the third quarter of 2002 was $97.9 million, an increase of 16 percent over the $84.0 million reported in the third quarter of 2001. Pro forma net income for the third quarter of 2002, which excludes amortization of goodwill and other intangible assets and amortization of unearned stock-based compensation, was $14.2 million. This represents an increase of 44 percent compared to pro forma net income of $9.8 million in the third quarter of 2001. Pro forma diluted earnings per share were $0.16, up 45 percent from $0.11 per share for the third quarter of 2001.
For the nine months ended September 30, 2002, revenue was $282.4 million, an increase of four percent over the $270.7 million for the same period in 2001. Pro forma net income in this period was $39.6 million, a decrease of six percent compared to $42.1 million for the same period in 2001. Pro forma diluted earnings per share were $0.45, down four percent from $0.47 per share for the same period in 2001.
For the third quarter of 2002, net income was $13.3 million or $0.15 per share on a diluted basis. This includes amortization of $0.9 million associated with the Freshwater Software acquisition. Net income for the nine months ended September 30, 2002 was $46.5 million or $0.52 diluted earnings per share.
Cash generated from operations for the third quarter of 2002 was $28.0 million compared to $7.7 million in the third quarter of 2001.
"Mercury Interactive's strong third quarter performance is a result of our ability to address customers' needs and the new IT reality," said Amnon Landan, chairman, CEO and president of Mercury Interactive Corporation. "Our Business Technology Optimization (BTO) solutions enable our customers to optimize the quality of their applications and infrastructure, eliminate technology waste and better align IT with the business."
Mercury Interactive will host a conference call today at 2:00 pm Pacific Time to discuss third quarter results. Information regarding the conference call and webcast is available at www.mercuryinteractive.com/company/ir.
About Mercury Interactive
Mercury Interactive, the global leader in business technology optimization (BTO), delivers Optane(TM), a suite of integrated products for enterprise testing, production tuning and performance management, that enables customers to optimize business processes and maximize business results. Customers worldwide -- including 75% of the Fortune 500 -- use Mercury Interactive solutions across their application and technology infrastructures to continuously measure, maximize and manage performance at every level of the business process and each stage of the application lifecycle to improve quality, reduce costs, and align IT with business goals.
Founded in 1989, Mercury Interactive is headquartered in Sunnyvale, California, with offices in more than 25 countries. Further information is available at www.mercuryinteractive.com or by phone at U.S. +1-408-822-5200. The company's common stock trades on the Nasdaq National Market under the symbol MERQ.
The statements concerning Mercury Interactive's future business prospects and product and service offerings contained in this press release are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Numerous important factors affect Mercury Interactive's operating results and could cause Mercury Interactive's actual results to differ materially from forecasts and estimates or from any other forward-looking statements made by, or on behalf of, Mercury Interactive. These factors include, but are not limited to, the following: 1) the effect of continued weak economic factors on the overall demand for software and services which could result in decreased revenues or lower revenue growth rates and increased uncertainty as to our expected revenues in future periods; 2) Mercury Interactive has historically received a substantial portion of its orders at the end of the quarter and if an order shortfall occurs at the end of a quarter it could negatively impact the company's operating results for that quarter; 3) the dependence of Mercury Interactive's financial growth on the continued success and acceptance of its existing and new software products and services and the ability to increase international sales; 4) intense competition for Mercury Interactive's products and services; and 5) the additional risks and important factors described in Mercury Interactive's SEC reports, including the Annual Report to Stockholders on Form 10-K for the fiscal year ended December 31, 2001 and other filings with the SEC. NOTE: Mercury Interactive is a registered trademark. Freshwater Software
is a registered trademark of our wholly owned subsidiary, Freshwater Software,
Inc. Product and company names are used herein for identification purposes
only, and may be trademarks of their respective companies.
MERCURY INTERACTIVE CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001
Revenue:
License fees $44,055 $42,474 $133,639 $155,617
Subscription fees 14,062 8,726 37,678 22,883
Service fees 39,735 32,800 111,035 92,200
Total revenue 97,852 84,000 282,352 270,700
Cost and expenses:
Cost of revenue 15,485 13,148 43,491 40,891
Marketing and selling 50,478 45,171 147,097 142,003
Research and development 9,233 9,255 27,716 28,051
General and administrative 6,537 5,578 20,147 16,696
Total cost and expenses 81,733 73,152 238,451 227,641
Income from operations 16,119 10,848 43,901 43,059
Other income, net 1,582 1,418 5,559 9,597
Income before provision for
income taxes 17,701 12,266 49,460 52,656
Provision for income taxes 3,540 2,453 9,892 10,531
Net income $14,161 $9,813 $39,568 $42,125
Net income per share (basic) $0.17 $0.12 $0.47 $0.51
Net income per share (diluted) $0.16 $0.11 $0.45 $0.47
Weighted average common shares
(basic) 84,187 83,266 83,732 82,494
Weighted average common shares
and equivalents (diluted) 87,743 88,426 88,548 90,386
The above Pro Forma Condensed Consolidated Statements of Operations for
the three and nine months ended September 30, 2002 and 2001 have been
adjusted to present the Company's operating results excluding
non-operating items. Amortization of goodwill and other intangible assets
of $639 and $12,452, restructuring, integration and other related charges
of $-0- and $4,415, and amortization of unearned stock-based compensation
of $251 and $934 for the three months ended September 30, 2002 and 2001
have been excluded. Amortization of goodwill and other intangible assets
of $1,917 and $17,783, restructuring, integration and other related
charges of $(537) and $5,361, amortization of unearned stock-based
compensation of $918 and $1,489 and a gain on early retirement of debt of
$11,610 and $-0- for the nine months ended September 30, 2002 and 2001
have been excluded.
MERCURY INTERACTIVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001
Revenue:
License fees $44,055 $42,474 $133,639 $155,617
Subscription fees 14,062 8,726 37,678 22,883
Service fees 39,735 32,800 111,035 92,200
Total revenue 97,852 84,000 282,352 270,700
Cost and expenses:
Cost of revenue 15,485 13,148 43,491 40,891
Marketing and selling 50,478 45,171 147,097 142,003
Research and development 9,233 9,255 27,716 28,051
General and administrative 6,537 5,578 20,147 16,696
Amortization of unearned
stock-based compensation 251 934 918 1,489
Restructuring, integration and
other related charges -- 4,415 (537) 5,361
Amortization of goodwill and
intangible assets 639 12,452 1,917 17,783
Total cost and expenses 82,623 90,953 240,749 252,274
Income (loss) from operations 15,229 (6,953) 41,603 18,426
Other income, net 1,582 1,418 17,169 9,597
Income (loss) before provision
for income taxes 16,811 (5,535) 58,772 28,023
Provision for income taxes 3,540 1,570 12,321 9,648
Net income (loss) $13,271 $(7,105) $46,451 $18,375
Net income (loss) per share
(basic) $0.16 $(0.09) $0.55 $0.22
Net income (loss) per share
(diluted) $0.15 $(0.09) $0.52 $0.20
Weighted average common
shares (basic) 84,187 83,266 83,732 82,494
Weighted average common shares
and equivalents (diluted) 87,743 83,266 88,548 90,386
Pro forma net income and net income per diluted share before
non-operating items for the three months ended September 30, 2002 and
2001 were $14,161 and $0.16 compared to $9,813 and $0.11; for the
nine months ended September 30, 2002 and 2001 pro forma net income and
net income per diluted share before non-operating items were $39,568 and
$0.45 compared to $42,125 and $0.47, respectively.For further detail see
attached Pro Forma Condensed Consolidated Statements of Operations.
MERCURY INTERACTIVE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, December 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $343,324 $248,297
Short-term investments 141,526 179,484
Trade accounts receivable, net 64,096 66,529
Prepaid expenses and other assets 35,973 30,945
Total current assets 584,919 525,255
Long-term investments 137,244 161,091
Property and equipment, net 89,509 93,375
Goodwill and other intangible assets, net 116,334 117,843
Interest rate swap 15,991 --
Restricted cash 6,000 --
Other assets, net 29,169 30,061
Total assets $979,166 $927,625
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $12,756 $12,420
Accrued liabilities 58,351 58,131
Income taxes payable 42,837 32,630
Deferred revenue 126,664 92,619
Total current liabilities 240,608 195,800
Convertible subordinated notes 315,605 377,480
Total liabilities 556,213 573,280
Stockholders' equity:
Common stock 169 166
Capital in excess of par value 250,872 232,750
Treasury stock (16,082) (16,082)
Notes receivable from issuance of stock (11,060) (11,164)
Unearned stock-based compensation (1,580) (4,795)
Accumulated other comprehensive loss (1,552) (2,265)
Retained earnings 202,186 155,735
Total stockholders' equity 422,953 354,345
Total liabilities and stockholders'
equity $979,166 $927,625
MERCURY INTERACTIVE CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001
Cash flows from operating
activities:
Net income (loss) $13,271 $(7,105) $46,451 $18,375
Adjustments to reconcile
net income (loss) to net
cash provided by operating
activities:
Depreciation and amortization 3,930 3,701 11,606 9,904
Sales reserve 1,723 309 2,017 2,456
Unrealized gain on interest
rate swap (386) -- (386) --
Amortization of goodwill and
other intangible assets 639 12,452 1,917 17,783
Amortization of unearned
stock-based compensation 251 934 918 1,489
Gains on early retirement
of debt -- -- (11,610) --
Loss on non-consolidated
companies -- -- 411 --
Non-cash restructuring charge -- 230 -- 230
Changes in assets and
liabilities:
Trade accounts receivable (6,095) 2,432 1,402 886
Prepaid expenses and
other assets 3,166 615 (4,539) 969
Accounts payable (247) (2,065) 207 (3,284)
Accrued liabilities (5,428) (6,906) (1,204) (10,242)
Income taxes payable 3,213 914 10,846 7,481
Deferred revenue 13,917 2,154 32,906 7,662
Net cash provided by
operating activities 27,954 7,665 90,942 53,709
Cash flows from investing
activities:
Cash paid in conjunction with
Freshwater acquisition, net -- -- -- (143,961)
Maturity of investments 189,339 165,686 305,868 811,400
Purchases of investments (30,049) (131,518) (244,063) (733,023)
Purchases of investments
in non-consolidated
companies (744) (5,808) (2,244) (18,944)
Acquisition of property and
equipment, net (2,682) (6,929) (6,461) (19,289)
Net cash provided by
(used in) investing
activities 155,864 21,431 53,100 (103,817)
Cash flows from financing
activities:
Issuance of common stock,
net of related notes
receivable 5,404 4,800 20,524 23,498
Purchases of treasury stock -- (16,082) -- (16,082)
Increase in restricted cash -- -- (6,000) --
Retirement of convertible
subordinated notes -- -- (64,640) --
Net cash provided by
(used in) financing
activities 5,404 (11,282) (50,116) 7,416
Effect of exchange rate
changes on cash 658 (872) 1,101 (453)
Net increase (decrease) in
cash and cash equivalents 189,880 16,942 95,027 (43,145)
Cash and cash equivalents at
beginning of period 153,444 166,300 248,297 226,387
Cash and cash equivalents at
end of period $343,324 $183,242 $343,324 $183,242
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RESEARCH ALERT-Bear Stearns ups QLogic profit view
Thursday October 17, 11:58 am ET
NEW YORK, Oct 17 (Reuters) - Bear Stearns said on Thursday it raised storage networking equipment maker QLogic Corp's (NasdaqNM:QLGC - News) 2003 and 2004 earnings estimates, citing the company's "superb" quarterly earnings that beat consensus expectations.
Bear Stearns analyst Andrew Neff said in a research note that he raised 2003 earnings estimates to $1.09 from $1.00 and raised 2004 earnings estimates to $1.20 from $1.15.
In the note, Neff said he sees QLogic "as the premier low-cost arms supplier to the server/storage vendors."
Shares of QLogic closed Wednesday at $23.36.
http://biz.yahoo.com/rc/021017/tech_qlogic_research1_1.html
Zeev,
I was with you in playing QLGC multiple times yesterday & today. Talk about an ATM! I even made a nice scalp short today too.
Congrats on your gains ZEEV! I don't know how you can be so active trading & posting simultaneously. Simply amazing.
You da man, man.
Tim
17:32 ET IBM Q4 guidance clarification (IBM) 64.90 -3.58: -- Update -- In Q&A portion, was asked to clarify its Q4 guidance with respect to PwC contribution... company says that current Street revenue estimate implies 12% sequential growth and that it is comfortable with that range when including revenues from PwC Consulting... IBM +5.00 at 69.90
17:29 ET IBM "generally comfortable" with Q4 estimates (IBM) 64.90 -3.58: -- Update -- On call, says it will begin to benefit from the enhanced revenue contribution from the PwC acquisition in Q4 and notes it is generally comfortable with the range of analyst expectations for its Q4 performance (current Multex consensus is $1.34 EPS and revenues of $22.27 bln), but adds that PwC contribution hasn't been accounted for in most analyst models... separately, says it's not ready to give specific 2003 guidance... IBM +4.99 at 69.89
17:20 ET After Hours Indications : The late session tone is solidly positive behind IBM's results. S&P futures at 867, trade six points above fair value while the Nasdaq 100 after hours indicator is higher by 7.5 points.
17:09 ET IBM comments on PwC acquisition (IBM) 64.90 -3.58: -- Update -- On call, says it continues to expects PwC Consulting acquisition to have an impact of about $0.30 per share in Q4 ($0.05 from ongoing operations, including amortization of intangibles; $0.08-0.09 related to deal proceeds; and $0.15-0.16 worth of transition charges)... maintains that deal will be accretive in 2H02 and break-even for full-year... IBM +3.09 at 67.99
17:01 ET Macromedia beats by 11 cents (MACR) 7.33 +0.01: Reports Q2 (Sep) earnings of $0.13 per share, $0.11 better than the Multex consensus of $0.02; revenues fell 2% year/year to $85.4 mln vs the $83.8 mln consensus. Expects Q3 revs to be $78-$82 mln (vs consensus of $84.6 mln), and "both revenues and profit are expected to show sequential increases into the March quarter."
16:59 ET Symantec raises guidance (SYMC) 35.56 : -- Update -- On conference call, company guides Q3 (Dec) to around $0.38 EPS and $335-355 mln revenues (excluding costs from acquired businesses) vs. Multex consensus estimates of $0.35 and $336.5 mln; puts operating expenses at $204 mln. Company expects FYO3 earnings to come in at $1.55 and revenues at $1.33 bln vs. consensus of $1.42 and $1.31 bln.
17:20 ET After Hours Indications : The late session tone is solidly positive behind IBM's results. S&P futures at 867, trade six points above fair value while the Nasdaq 100 after hours indicator is higher by 7.5 points.
Apple cautious on holidays, sees new Mac users
Wednesday October 16, 5:04 pm ET
SAN FRANCISCO, Oct 16 (Reuters) - Apple Computer Inc.(NasdaqNM:AAPL - News) does not expect strong holiday sales for the PC industry, although it expects to do better than its competitors, Chief Financial Officer Fred Anderson said on Wednesday.
"Given the uncertain environment out there, I don't think anyone should be optimistic about the holiday season," Anderson said in a telephone interview.
He said Apple held its share in the education market in its fiscal fourth quarter and that the weak market had not deteriorated further in the quarter.
He also said that Apple had seen some success in its retail stores, winning users of its Microsoft Corp.(NasdaqNM:MSFT - News) Windows-powered computers to its Macintosh line.
Apple-owned retail store sales rose to $102 million in the quarter from $63 million the previous quarter, and 40 percent of the Macintoshes, measured by processors, were bought by users new to the Mac platform, he said.
http://biz.yahoo.com/rc/021016/tech_apple_holidays_1.html
QLogic reports larger second-qtr profit
Wednesday October 16, 4:59 pm ET
ALISO VIEJO, Calif., Oct 16 (Reuters) - Storage networking equipment maker QLogic Corp. (NasdaqNM:QLGC - News) posted a larger quarterly net profit on Wednesday and said it would buy back $100 million of its stock.
QLogic reported a profit of $23 million, or 24 cents per share, for the fiscal second quarter ended Sept. 29, compared with a year-earlier profit of $15.9 million, or 17 cents per share.
Excluding charges, the company posted a profit of $27 million, or 28 cents per share. The average estimate of 24 analysts polled by Thomson First Call was for earnings per share of 26 cents on that basis, with a range of 25 cents to 28 cents.
The Aliso Viejo, California-based company had revenue of $107.1 million, compared with year-earlier revenue of $80.9 million.
QLogic shares closed sharply lower ahead of its earnings announcement, ending down 11.5 percent at $23.36 on Nasdaq.
http://biz.yahoo.com/rc/021016/tech_qlogic_earns_1.html
16:56 ET QLogic beats by two cents (QLGC) 23.36 -3.04: -- Update -- -- Correction -- QLGC reported pro forma EPS of $0.28, two cents better than the Multex consensus (we originally reported EPS of $0.26, or in-line with consensus). QLGC trading up 7.1% to 25.02 after hours.
16:52 ET IBM lowering pension plan rate of return assumptions (IBM) 64.90 -3.58: -- Update -- On call, says it is lowering its rate of return assumptions for its pension plan in 2003 to 8.0-8.5% (from 9.5% in 2002)... notes that this assumption will affect income statement by roughly $700 mln, but impact will be offset by $900 mln in cost savings... says its working assumption is that it will contribute as much as $1.5 bln to the U.S. pension plan with plan for it to be fully funded by 2005... IBM +2.10 at 67.00
QLogic Corporation Reports Second Quarter Results for Fiscal Year 2003
Revenues Reach Record Level
Wednesday October 16, 4:43 pm ET
ALISO VIEJO, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--QLogic Corporation (Nasdaq:QLGC - News), the only end-to-end storage network infrastructure provider, announced today its financial results for the second fiscal quarter ended September 29, 2002.
Revenues in the second quarter on a pro forma basis were a record $108.5 million, up 8% sequentially from $100.8 million in the June 2002 quarter. Fibre Channel revenues were up 10% sequentially to a record $75.6 million representing 70% of the overall business, up from 68% in the prior quarter. Gross margins were 63.0% compared to 63.2% in the previous quarter. Second quarter pro forma net income increased 7% from the previous quarter to a record $27.0 million, or $0.28 per share on a diluted basis compared to $25.3 million, or $0.26 per share on a diluted basis.
Revenues increased 33% compared to $81.7 million reported for the same quarter a year ago on a pro forma basis. Fibre Channel revenues grew 33% from $57.0 million in the September 2001 quarter, which represented 70% of the overall business. Pro forma net income increased 52% from $17.7 million, or $0.19 per share on a diluted basis in the same quarter last year.
Net revenues on a GAAP basis for the quarter ended September 29, 2002 were $107.1 million, and were net of a $1.4 million sales discount for warrants issued to Sun Microsystems. Second quarter revenues on a GAAP basis were up 32% compared to net revenues of $80.9 million reported in the September 2001 quarter. The Company's second quarter net income recorded on a GAAP basis was up 45% to $23.0 million or $0.24 per diluted share, compared to $15.9 million or $0.17 per diluted share in the prior year. The pro forma adjustments include the Sun warrants, merger related stock compensation charges and an impairment charge for a technology company investment, net of the related tax effects.
"We continue to be encouraged by our strong financial performance," said H.K. Desai, the Company's chairman, CEO and president. "Despite the sluggish overall technology spending across the industry, the company once again experienced strong growth in our Fibre Channel segment and continued moderate growth in our SCSI business. Fibre Channel revenues increased 10% sequentially, while SCSI revenues grew 3% driven by demand from a diverse range of customers."
The Company's balance sheet was again highlighted by an increase in cash and investments, ending the quarter with $571.9 million, an increase of $24.5 million during the quarter.
In a separate announcement, QLogic announced today that its Board of Directors has authorized a program to repurchase up to $100 million of the Company's outstanding common stock. The stock repurchase program will be put into effect immediately. Share repurchases by the Company may be made from time to time in the open market and in private transactions over the next two years.
QLogic's second quarter 2003 conference call is scheduled today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chairman of the board, chief executive officer and president and Frank Calderoni, senior vice president and chief financial officer, will conduct the conference call. The call is being webcast live via the Internet at www.qlogic.com or via CCBN. Phone access is available at (719) 457-2666, passcode: 694615.
A replay of the conference call will be available via webcast at www.qlogic.com or audio at (719) 457-0820, passcode: 694615. The webcast will be available for 90 days. The audio replay will be available through October 31, 2002.
Powered by QLogic
QLogic technology powers SAN solutions from the world's leading storage vendors including Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Quantum, Sony, StorageTek and Sun. The industry depends on QLogic to simplify SANs with native Fibre Channel support designed into all major operating systems and to innovate new ways to network storage through new technologies like Virtual Interface (VI), Fibre Down(TM) and iSCSI.
About QLogic (www.qlogic.com)
QLogic Corporation (Nasdaq:QLGC - News) simplifies the process of networking storage for OEMs, resellers and system integrators with the only end-to-end infrastructure in the industry, consisting of award-winning controller chips, host bus adapters, network switches and management software to move data from the storage device through the fabric to the server. A member of the S&P 500 Index, QLogic was recently ranked number 25 on Forbes' Best 200 Small Companies and was named to Fortune's 100 Fastest Growing Companies list for the third consecutive year.
Note: All QLogic-issued press releases appear on the company's web site (www.qlogic.com). Any announcement that does not appear on the QLogic web site has not been issued by QLogic.
Disclaimer-Forward Looking Statements
With the exception of historical information, the statements set forth above include forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. QLogic wishes to advise readers that these potential risks and uncertainties relate to, but are not limited to, in no particular order: the introduction of new and changing technologies in our industry and customer acceptance of those technologies; a change in semiconductor foundry capacity or conditions; fluctuations in the growth of I/O markets; fluctuations or cancellations in orders from OEM customers; QLogic's ability to compete effectively with other companies; cancellation of OEM products associated with design wins; and fluctuations in our operating results and our stock price.
More detailed information on these and additional factors which could affect QLogic's operating and financial results are described in QLogic's Forms 10-Q, 10-K and other reports, filed or to be filed with the Securities and Exchange Commission. QLogic urges all interested parties to read these reports to gain a better understanding of the many business and other risks that QLogic faces. Additionally, QLogic undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Note to Editors: Trademarks and registered trademarks are the property of the companies with which they are associated.
-0-
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -- PRO FORMA
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
Sep. 29, June 30, Sep. 30, Sep. 29, Sep. 30,
2002 2002 2001 2002 2001
Net revenues $108,525 $100,780 $81,746 $209,305 $173,808
Cost of revenues 40,200 37,107 32,607 77,307 66,918
Gross margin 68,325 63,673 49,139 131,998 106,890
Operating expenses
Engineering and
development 18,065 16,612 15,034 34,677 31,060
Selling and
marketing 11,435 10,618 9,063 22,053 19,220
General and
administrative 3,651 3,194 3,194 6,845 6,977
Total
operating
expenses 33,151 30,424 27,291 63,575 57,257
Operating income 35,174 33,249 21,848 68,423 49,633
Interest and other
income, net 5,167 4,612 4,662 9,779 9,768
Income before income
taxes 40,341 37,861 26,510 78,202 59,401
Income taxes 13,321 12,537 8,765 25,858 19,717
Net income $27,020 $25,324 $17,745 $52,344 $39,684
Net income per share:
Basic $0.29 $0.27 $0.19 $0.56 $0.43
Diluted $0.28 $0.26 $0.19 $0.55 $0.42
Number of shares
used in
per share
computations:
Basic 93,377 93,177 92,535 93,277 92,467
Diluted 95,189 95,857 94,761 95,384 94,908
QLOGIC CORPORATION
Reconciliation of Pro Forma Net Income to GAAP Net Income
(Unaudited)
The following represents a reconciliation of pro forma net income
to GAAP net income. The amounts below are substantially non-cash and
have arisen primarily from the Company's stock-based discounts, merger
and acquisition related charges, and an impairment of an investment in
a technology company.
Three Months Ended Six Months Ended
Sep. 29, Sep. 30, Sep. 29, Sep. 30,
2002 2001 2002 2001
Pro forma net income $27,020 $17,745 $52,344 $39,684
Items excluded from pro forma:
Sales discounts for stock
warrants (1,410) (867) (3,228) (3,028)
Acquired in process R&D
charges -- (275) -- (529)
Merger related stock
compensation charges (1,568) (985) (3,135) (2,102)
Technology company investment
impairment (3,000) -- (3,000) --
Amortization of goodwill and
other intangibles -- (682) -- (1,332)
Impact on income before taxes (5,978) (2,809) (9,363) (6,991)
Income tax effect of the pro
forma adjustments 1,973 926 3,090 2,349
Impact on net income (4,005) (1,883) (6,273) (4,642)
GAAP net income $23,015 $15,862 $46,071 $35,042
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -- GAAP
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
Sep. 29, Sep. 30, Sep. 29, Sep. 30,
2002 2001 2002 2001
Gross revenues $108,525 $81,746 $209,305 $173,808
Stock-based sales
discounts 1,410 867 3,228 3,028
Net revenues 107,115 80,879 206,077 170,780
Cost of revenues 40,200 32,607 77,307 66,918
Gross margin 66,915 48,272 128,770 103,862
Operating expenses:
Engineering and
development 19,633 16,294 37,812 33,691
Selling and marketing 11,435 9,063 22,053 19,220
General and
administrative 3,651 3,876 6,845 8,308
Total operating
expenses 34,719 29,233 66,710 61,219
Operating income 32,196 19,039 62,060 42,643
Interest and other
income, net 2,167 4,662 6,779 9,768
Income before income
taxes 34,363 23,701 68,839 52,411
Income taxes 11,348 7,839 22,768 17,369
Net income $23,015 $15,862 $46,071 $35,042
Net income per share:
Basic $0.25 $0.17 $0.49 $0.38
Diluted $0.24 $0.17 $0.48 $0.37
Number of shares used in
per share computations:
Basic 93,377 92,535 93,277 92,467
Diluted 95,189 94,761 95,384 94,908
QLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
ASSETS
Sep. 29, March 31,
2002 2002
Current assets:
Cash and cash equivalents $128,231 $76,124
Short-term investments 443,651 416,422
Accounts receivable, net 32,033 38,360
Inventories 30,405 24,758
Deferred income taxes 28,064 27,635
Prepaid expenses and other current assets 3,577 3,345
Total current assets 665,961 586,644
Property and equipment, net 60,467 60,293
Other assets 12,117 23,078
$738,545 $670,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,460 $15,025
Accrued expenses 38,254 36,007
Total current liabilities 55,714 51,032
Total stockholders' equity 682,831 618,983
$738,545 $670,015
QLogic Corporation Announces Stock Repurchase Program
Wednesday October 16, 4:39 pm ET
ALISO VIEJO, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--QLogic Corporation (Nasdaq:QLGC - News) announced today that its Board of Directors has authorized a program to repurchase up to $100 million of the Company's outstanding common stock. The stock repurchase program will be put into effect immediately and will continue over the next two years.
Share repurchases by the Company may be made in the open market and in private transactions at the discretion of management as market conditions warrant.
"The buy-back of our shares is an attractive opportunity for the Company. We believe this is a good investment of corporate funds and is in the best interests of our shareholders," stated H.K. Desai, QLogic Corporation's chief executive officer. As of September 29, 2002, QLogic Corporation had $571.9 million in cash and investments, and there were 93.4 million shares of common stock issued and outstanding.
Powered by QLogic
QLogic technology powers SAN solutions from the world's leading storage vendors including Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Quantum, Sony, StorageTek and Sun. The industry depends on QLogic to simplify SANs with native Fibre Channel support designed into all major operating systems and to innovate new ways to network storage through new technologies like Virtual Interface (VI), Fibre Down(TM) and iSCSI.
About QLogic (www.qlogic.com)
QLogic Corporation (Nasdaq:QLGC - News) simplifies the process of networking storage for OEMs, resellers and system integrators with the only end-to-end infrastructure in the industry, consisting of award-winning controller chips, host bus adapters, network switches and management software to move data from the storage device through the fabric to the server. A member of the S&P 500 Index, QLogic was recently ranked number 25 on Forbes' Best 200 Small Companies and was named to Fortune's 100 Fastest Growing Companies list for the third consecutive year.
Note: All QLogic-issued press releases appear on the company's web site (www.qlogic.com). Any announcement that does not appear on the QLogic web site has not been issued by QLogic.
Disclaimer -- Forward-Looking Statements
With the exception of historical information, the statements set forth above include forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. QLogic wishes to advise readers that these potential risks and uncertainties relate to, but are not limited to, in no particular order: the introduction of new and changing technologies in our industry and customer acceptance of those technologies; a change in semiconductor foundry capacity or conditions; fluctuations in the growth of I/O markets; fluctuations or cancellations in orders from OEM customers; QLogic's ability to compete effectively with other companies; cancellation of OEM products associated with design wins; and fluctuations in our operating results and our stock price.
More detailed information on these and additional factors which could affect QLogic's operating and financial results are described in QLogic's Forms 10-Q, 10-K and other reports, filed or to be filed with the Securities and Exchange Commission. QLogic urges all interested parties to read these reports to gain a better understanding of the many business and other risks that QLogic faces. Additionally, QLogic undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Note to Editors: Trademarks and registered trademarks are the property of the companies with which they are associated.
--------------------------------------------------------------------------------
Contact:
QLogic Corporation, Aliso Viejo
Steve Sturgeon, 949/389-6268 (editorial)
steve.sturgeon@qlogic.com
or
Investor Relations Contacts:
Frank Calderoni, 949/389-6120
Laurie Moreland, 949/389-6418
investor.relations@qlogic.com
--------------------------------------------------------------------------------
Source: QLogic Corp.
http://biz.yahoo.com/bw/021016/160595_1.html
Apple Reports Fourth Quarter Results
Wednesday October 16, 4:30 pm ET
CUPERTINO, Calif., Oct. 16 /PRNewswire-FirstCall/ -- Apple® today announced financial results for its fiscal 2002 fourth quarter ended September 28, 2002. For the quarter, the Company posted a net loss of $45 million, or $.13 per share. These results compare to a net profit of $66 million, or $.19 per diluted share, in the year-ago quarter. Revenues for the quarter were $1.44 billion, flat with the year ago quarter, and gross margins were 26.4 percent, down from 30.1 percent in the year-ago quarter. International sales accounted for 35 percent of the quarter's revenues.
The quarter's results included several non-recurring items: the write-down of certain equity investments totaling $49 million net of tax; a restructuring charge of $4 million net of tax; an in-process R&D charge of $1 million net of tax; and the reversal of a portion of a previous executive compensation expense resulting in a favorable impact of $2 million. Excluding these non-recurring items, the Company's net profit for the quarter would have been $7 million, or $.02 per share.
Apple shipped 734 thousand Macintosh® units during the quarter, down 14 percent from the year-ago quarter.
"Though our industry continues to struggle, we had some bright spots this quarter -- Mac OS X v10.2 Jaguar is a big hit and on track to have 5 million users by the end of this year, our 'Switchers' campaign is very well received and is attracting a lot of new customers, and our retail stores sold over $100 million and hosted 2.25 million visitors this quarter," said Steve Jobs, Apple's CEO. "Looking forward, we do not expect our industry to pick up anytime soon, though we're hoping to help put a lot of iPods, iMacs and iBooks under trees this holiday season. With the stability of our rock-solid balance sheet, Apple will continue to invest through this downturn to create the industry's most innovative products and best buying experience."
"We were extremely pleased with our ability to achieve our revenue target for the fourth quarter while reducing channel inventory to a normal level," said Fred Anderson, Apple's CFO. "Continued strong asset management enabled us to maintain a solid balance sheet with over $4.3 billion in cash. Looking ahead to the first quarter of 2003, we expect revenue to be up slightly from the September quarter, and expect a slight profit for the quarter before non-recurring items."
For the year, the Company reported net earnings of $65 million on revenues of $5.74 billion, compared to a net loss of $25 million on revenues of $5.36 billion in 2001.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
Apple will provide live streaming of its Q4 2002 financial results conference call utilizing QuickTime® 6, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PT on Wednesday, October 16, 2002 at http://www.apple.com/quicktime/qtv/earningsq402/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.
This press release contains forward-looking statements about future revenues and profit. These statements involve risks and uncertainties and actual results may differ. Potential risks and uncertainties include continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company's reaction to them may have on consumer and business buying decisions with respect to the Company's products; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; risks associated with the Company's retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Company's dependency on manufacturing and logistics services provided by third-parties may have on the quality or quantity of products manufactured; and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC, including the Company's Form 10-Q for the quarter ended June 29, 2002, and the Company's Form 10-K for the 2002 fiscal year to be filed with the SEC.
NOTE: Apple, the Apple logo, Macintosh, Mac OS, QuickTime, iPod, iMac and iBook are either registered trademarks or trademarks of Apple. Other company and product names may be trademarks of their respective owners.
CONSOLIDATED BALANCE SHEETS
(In millions, except share amounts)
ASSETS:
Sept. 28, Sept. 29,
2002 2001
Current assets:
Cash and cash equivalents $2,252 $2,310
Short-term investments 2,085 2,026
Accounts receivable, less allowances of
$51 and $51, respectively 565 466
Inventories 45 11
Deferred tax assets 166 169
Other current assets 275 161
Total current assets 5,388 5,143
Property, plant, and equipment, net 621 564
Non-current debt and equity investments 39 128
Acquired intangible assets 119 76
Other assets 131 110
Total assets $6,298 $6,021
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $911 $801
Accrued expenses 747 717
Total current liabilities 1,658 1,518
Long-term debt 316 317
Deferred tax liabilities 229 266
Total liabilities 2,203 2,101
Commitments and contingencies
Shareholders' equity:
Common stock, no par value; 900,000,000
shares authorized; 358,958,989 and
350,921,661 shares issued and
outstanding, respectively 1,826 1,693
Acquisition-related deferred stock compensation (7) (11)
Retained earnings 2,325 2,260
Accumulated other comprehensive loss (49) (22)
Total shareholders' equity 4,095 3,920
Total liabilities and shareholders' equity $6,298 $6,021
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share amounts)
THREE MONTHS ENDED TWELVE MONTHS ENDED
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 2002 2001
Net sales $1,443 $1,450 $5,742 $5,363
Cost of sales 1,062 1,013 4,139 4,128
Gross margin 381 437 1,603 1,235
Operating expenses:
Research and development 116 116 446 430
Selling, general, and
administrative 280 268 1,111 1,138
Restructuring costs 6 0 30 0
Executive bonus (2) 0 (2) 0
Purchased in-process research
and development 1 0 1 11
Total operating expenses 401 384 1,586 1,579
Operating income (loss) (20) 53 17 (344)
Gain (loss) on non-current
investments, net (65) 1 (42) 88
Unrealized loss on convertible
securities 0 0 0 (13)
Interest and other income, net 25 40 112 217
Total interest and other income,
net (40) 41 70 292
Income (loss) before provision
for (benefit from) income taxes (60) 94 87 (52)
Provision for (benefit from)
income taxes (15) 28 22 (15)
Income (loss) before accounting
change (45) 66 65 (37)
Cumulative effect of accounting
change, net of income taxes of $5 0 0 0 12
Net income (loss) $(45) $66 $65 $(25)
Earnings (loss) per common share
before accounting change:
Basic $(0.13) $0.19 $0.18 $(0.11)
Diluted $(0.13) $0.19 $0.18 $(0.11)
Earnings (loss) per common share
after accounting change:
Basic $(0.13) $0.19 $0.18 $(0.07)
Diluted $(0.13) $0.19 $0.18 $(0.07)
Shares used in computing
earnings (loss) per share
(in thousands):
Basic 358,910 350,819 355,022 345,613
Diluted 358,910 356,525 361,785 345,613
RECONCILIATION OF REPORTED NET LOSS
TO NET INCOME BEFORE NON-RECURRING ITEMS
(In millions, except share and per share amounts)
Three Months Ended
September 28, 2002
Net loss as reported $(45)
Adjustments (net of tax effect, if any):
Loss on non-current investments 49
Restructuring costs 4
Purchased in-process research and development 1
Executive bonus (reversal) $(2)
Net income before non-recurring items $7
Net income before non-recurring items per
common share:
Basic $0.02
Diluted $0.02
Shares used in computing Net income before
non-recurring items per common share
(in thousands):
Basic 358,910
Effect of dilutive options 1,965
Diluted 360,875
Reuters Business Report
IBM Quarterly Earnings Rise
Wednesday October 16, 4:06 pm ET
ARMONK, N.Y. (Reuters) - International Business Machines Corp. (NYSE:IBM - News) on Wednesday said its third-quarter earnings from continuing operations and before items rose as the computer services, hardware and software company offset weak demand for technology by cutting costs.
IBM said its profit excluding most of its hard disk drive operations, which it plans to sell this year, rose to $1.7 billion, or 99 cents per share, compared with $1.7 billion, or 97 cents per share, a year ago.
On that basis, the Armonk, New York-based company was expected to report earnings of 96 cents per share within a range of 90 cents to $1.02 per share, according to Thomson First Call.
http://biz.yahoo.com/rb/021016/tech_ibm_earns_1.html
15:44 ET QLogic falls on earnings rumor, JNI win (QLGC) 23.32 -3.08: Stock has been notably weak today, due we're told to a rumor that the co may lower guidance tonight as well as this morning's news that competitor JNIC won an OEM contract with SUNW.
13:57 ET Genesis Microchip spikes on contract speculation (GNSS) 11.81 +1.06: Stock has spiked in the last 10 min on chatter that the co has won a contract from GTW; while we cannot confirm this speculation, we do note that yesterday GTW announced yesterday that it will make flat panel displays standard on its PCs.
18:15 ET Intel not claiming more visibility (INTC) 16.52 +1.42: -- Update -- On call, analyst suggests tighter revenue range for Q4 implies better visibility... Management says it is hard to claim it has more visibility and attributes tighter revenue range to fact that Q4 is less back-end loaded and is the most linear quarter of its year... INTC -2.13 at 14.39
17:53 ET Intel (INTC) 16.52 +1.42: -- Update -- On call, management's prepared remarks pretty much follow text of press release... did note that corporate purchasing remained weak in Q3 in the mature markets of Europe and that Asia-Pacific region set new revenue record for quarter with China achieving 39% yr/yr revenue growth... INTC -1.91 at 14.61
18:01 ET Intel expects to bring inventories down some in Q4 (INTC) 16.52 +1.42: -- Update -- In Q&A portion of call, says it expects to bring inventory down a little bit in Q4, which should take some pressure off underutilization charges... INTC -1.99 at 14.53
18:10 ET Intel hit wall in terms of cost savings (INTC) 16.52 +1.42: -- Update -- On call, says it is seeing a situation where it's just not seeing demand pick up and that it hit a wall in the way of cost savings, which was the biggest factor behind the disappointing margin performance in Q3... says margin improvement going forward will have a lot to do with demand... INTC -2.08 at 14.44
17:04 ET Motorola matches earnings ests; falls short on revs (MOT) 10.10 Unch : Reports Q3 (Sep) earnings of $0.05 per share, in line with the Multex consensus of $0.05; revenues fell 11.9% year/year to $6.37 bln vs the $6.76 bln consensus.
16:52 ET Novellus provides mixed Q4 guidance (NVLS) 26.13 -2.68: -- Update -- On call, says it expects Q4 EPS of $0.11 and revenues of $211 mln... Current Multex consensus estimates are $0.06 and $216.1 mln, respectively... NVLS -1.80 at 24.33
16:43 ET Intel: CFO sees "soft demand in end mkts", Q4 PC demand at low end of forecast (INTC) 16.52 +1.42: -- Update --
16:37 ET Nasdaq 100 after hours indicator -23 following Intel -11.5% :
16:27 ET Intel capex cut driven by construction savings (INTC) 16.52 +1.42: -- Update -- It's notable that Intel says the majority of its capex reduction is due to cost savings with ongoing construction projects; Intel noted on its last earnings conference call that it could drive capex savings through savings on construction projects, and that appears to be the case here. There is an important distinction between capex savings due to reduced investment in new semi equipment and due to construction savings. The news here is not as bad for semi equip cos as it appears at first glance.
16:22 ET Intel guides Q4 revs below consensus, cuts 2002 capex & gross margin forecast (INTC) 16.52 1.42: -- Update -- Expects Q4 rev to be $6.5-$6.9 bln, vs consensus of $6.9 bln, and expects 2002 capex to be about $4.7 bln, lower than the previous expectation of between $5.0-$5.2 bln. Gross margin for 2002 is expected to be about 49%, near the low end of the previous expectation of 51%.
"Can anyone recall the last time we had 2 gap ups this close together?"
10/9 - 10/10
9/24 - 9/25
9/10 - 9/11 - VSG
8/23 - 8/26 - VSG
8/21 - 8/22 - VSG
8/6 - 8/7
7/26 - 7/29
* VSG = very small gap
Why wouldn't this just be another round of kill the puts now, get the calls later during expiration week?
16:42 ET Juniper edges higher on guidance : JNPR +0.01 now vs the 4 pm ET close to 5.19.
16:38 ET Juniper Networks guides in line for Q4 (JNPR) 5.18 +0.58: -- Update -- Sees Q4 net loss of $0.01 per share -- Multex consensus estimate is for a net loss of $0.01 per share.
16:36 ET Juniper Reaction : Networking sector trading down modestly on the Juniper report. Prices vs 4 pm ET close -- JNPR -0.32, CSCO -0.05, EXTR -0.08, FDRY -0.01
16:20 ET Juniper Networks reports in-line Q3 (JNPR) 5.18 +0.58: Reports Q3 (Sep) loss of $0.02 per share, in line with the Multex consensus of ($0.02); revenues fell 24.6% year/year to $152.0 mln vs the $151.3 mln consensus.
Island shows JNPR even with the close......... & JNPR was up 12.61% on the day.
13:53 ET Dow off 5.7 or 50? : Finding that on several major quote services the Dow Jones Industrial Avg is being quoted down 5.7 pts. However, other services indicate that the Dow is currently trading 50 pts lower. Appears that the -50 is the accurate quote, and that problem is due to a number of trades not being reflected in the Dow change by some services.
12:49 ET Fed's Broaddus sounds cautious : Richmond Fed President Broaddus (who is not a voting FOMC member this year) on the tape saying that disinflation is a plausible risk, the labor market recovery is tepid, and the business/consumer mood is pessimistic. But he also notes glimmers of light on the business investment front. This is a relatively negative tone, but the market appears willing to focus more on the positive (possible Fed rate cuts) than the negative (continued economic weakness).
14:52 ET BEA Systems maintains Q3 outlook (BEAS) 5.26 -0.12: Reuters reports that company is maintaining its guidance for Q3. BEAS issued the comments today at its analyst meeting.
14:48 ET Dell Computer expected to reaffirm guidance (DELL) 23.42 -0.88: Lehman analyst Dan Niles expects DELL to reaffirm guidance of 5% rev growth for the qtr and EPS of $0.21. In general, believes the market will view this as a slight positive given the number of pre-announcements seen recently... Tomorrow, DELL kicks off its 2-day analyst meeting.
14:03 ET FOMC wanted to convey concern for economy : The FOMC minutes for the Aug 13 meeting did indeed indicate that policy makers were becoming more concerned about the prospects for the economy, as was indicated by their decision to shift to an easing bias. Interestingly, in discussing the possible need for future actions, the FOMC said that a rate cut could be prompted by "a further significant weakening in economic prospects--for example, that might be associated with additional deterioration in financial markets". This statement suggests that financial market weakness alone could be enough to prompt an easing.
13:39 ET Brocade defended by Merrill Lynch (BRCD) 8.50 -1.87: -- Update -- Merrill Lynch doing the requisite defense of BRCD -- says sell off is way overdone; worst case scenario is price of 7.50.