Positive surprises
After the market closed Wednesday, Extreme Networks (EXTR: news, chart) reported its second-quarter financial results. The Internet infrastructure company reported second-quarter pro forma earnings of $2 million, or 2 cents a share, on revenue of $109.1 million. On average, analysts expect a second-quarter profit of 1 cent, on revenue of about $110 million, according Thomson Financial/First Call. Shares closed down 75 cents to $14.61 ahead of the news. See full story.
Compaq (CPQ: news, chart) reported earnings of $92 million, or 5 cents a share, vs. a year-ago loss, even though sales declined 27 percent from the same period last year. Analysts had expected the company to earn a penny a share, on average, according to a survey of analysts by Thomson Financial/First Call. Excluding a $36 million charge for merger-related expenses, the company earned 6 cents a share. Sales came in at $8.46 billion, compared with $11.5 billion in the year-ago period. Analysts had expected sales of $8.02 billion. Shares of Compaq fell 23 cents to close at $11.17 in regular trading on the New York Stock Exchange. See full story.
After the market closed, Mercury Computer Systems (MRCY: news, chart) reported second-quarter earnings of $3.8 million, or 16 cents a share, beating the consensus estimate by a penny a share. Revenue for the latest quarter totaled $37.4 million, up 7 percent compared with the first quarter total. In the year-ago period, the company earned $6.9 million, or 30 cents a share, on revenue of $43 million. Shares closed down $1.21 to $34.06 ahead of the news.
Semiconductor products company Conexant Systems (CNXT: news, chart) reported a first-quarter loss of $107.7 million, or 42 cents a share, excluding one-time items. Analysts polled by First Call anticipated a loss of 44 cents a share. Revenue totaled $201 million, up 10 percent compared with the company's previous expectations. Revenue was driven by "strong performance" in the company's wireless communications business. The company noted that it is entering the second quarter with a sequentially higher backlog. As a result the company expects to build on its first quarter revenue base. Shares closed down 14 cents to $12.58 but traded higher in after-hours trading.
Inktomi (INKT: news, chart) said after the close of regular trading Wednesday that it recorded a first-quarter loss of $29.4 million, or 22 cents per share, compared with a net loss of $38.1 million, or 31 cents per share, in the same quarter the year before. Revenues at the search-engine software company totaled $40 million, compared with $80.5 in revenue the year before. On a pro forma basis, Inktomi lost $7.7 million, or 6 cents per share on revenue of $40 million, compared with a $3.7 million, or 3-cent per share loss on revenue of $75.4 million the year before. Analysts surveyed by Thomson Financial/First Call had been expecting the company to lose 11 cents per share on revenue of $39.09 million. Shares of Inktomi finished Wednesday's session down 6.5 percent at $6.66.
Yahoo (YHOO: news, chart) said late Wednesday that it lost 2 cents in the fourth quarter. Excluding certain items, Yahoo posted a pro forma profit of 3 cents, vs. 13 cents earned in the year-ago period. Quarterly sales fell to 39 percent to $188.9 million from $311 generated in the same period a year ago. Additionally, Jeff Mallett, Yahoo's president is stepping down. Analysts expected Yahoo to earn 1 cent on revenue of $170 million. See full story.
Internet security software maker Symantec Corp. said it posted a significant profit improvement in its fiscal third quarter, easily surpassing most estimates. Shares (SYMC: news, chart) climbed $4.36 to $71.31 in after-hours trading on the Island ECN after dropping $3.45 in the regular session. Symantec said its profit from operations was $59.4 million, or 78 cents a share, compared with a profit of $40.4 million, or 52 cents, in the same period last year. Analysts were expecting a profit of 64 cents in the latest quarter. Revenue rose to $290.2 million from $241.8 million. See full story.
Internet security software developer McAfee.com said after the market closed that it was able to post a profit in the fourth quarter, reversing a loss in the year-ago period and easily speeding past most forecasts. Reflecting increased concerns in the aftermath of the Sept. 11 terrorist attacks, the company's profit from operations was $4.2 million, or 9 cents a share, compared with a deficit of $2.8 million, or 6 cents, in the same period last year. Analysts were expecting a profit of 5 cents in the latest quarter. Revenue rose to $18.6 million from $12.1 million. Shares (MCAF: news, chart) rose $1.01 to $33.30 on the Island ECN after falling 11.3 percent in the regular session. See full story.
Advanced Micro Devices (AMD: news, chart) reported a fourth-quarter loss of $15.8 million, or 5 cents a share, on revenue of $951.87 million. During the same quarter last year, net income was $177.97 million, or 53 cents a share, on revenue of $1.175 billion. Analysts surveyed by Thomson Financial/First Call expected AMD to lose 18 cents a share on revenue of $839.7 million. The company said it logged record unit and dollar sales of chips used in personal computers. Also, AMD said it remains on track to return to profitability in the second quarter and to achieve "solid profitability" for the entire year. Sales during the first quarter are expected to track seasonal patterns and AMD is targeting a revenue decline to $900 million. Shares closed down $1.24 to $17.91 ahead of the news. See full story.
Exfo Electro-Optical (EXFO: news, chart) posted a first-quarter loss and said it expects lower second-quarter revenue. The company cited weakness for its products that test fiber-optic telecommunications equipment. The company lost $19.1 million, or 33 cents a share. In the year-ago period, the company earned $7.5 million, or 16 cents a share. Excluding one-time items, the company would have lost $1.9 million, or 3 cents a share. Analysts polled by First Call expected a 4-cent loss. Sales totaled $20.1 million down compared with $28.5 million in the year-ago period. The company anticipates second-quarter revenue to come in between $14 million and $18 million, with a per share loss between 5 cents and 9 cents a share. Analysts had been expecting a loss of 3 cents a share for the second quarter. The stock closed down 74 cents to $10.32.
State Street Boston Corp. (STT: news, chart) posted earnings of $171 million or 52 cents a share, up from the year-ago total of $148 million or 45 cents. The latest results were a penny ahead the consensus estimate. Revenue rose $115 million to $1 billion "on a taxable-equivalent basis," the bank group said. Servicing fees were up 16 percent in the fourth quarter, to $414 million. The stock closed down 54 cents to $54.90.
Metris (MXT: news, chart) reported fourth-quarter earnings that exceeded expectations and reiterated its previous forecast for 2002. The credit card issuer said it earned $70.7 million, or 72 cents a share, compared with a profit of $48.6 million, or 52 cents a share in the same period a year earlier. Analysts surveyed by Thomson Financial/First Call had been expected a profit of 70 cents, on average. For 2002, the company said it continues to expect a profit of $3 to $3.05, ahead of analysts' expectations of $2.96. The stock closed down $2.41 to $21.03.
AMR Corp. (AMR: news, chart) reported a fourth-quarter loss of $798 million, or $5.17 per share, versus earnings of $47 million, or 29 cents a share in the comparable period a year ago. Excluding special charges and a U.S. government grant, the parent of American Airlines' loss from operations totaled $734 million, or $4.75 per share during the quarter ending December, narrower than the average analyst loss forecast compiled by Thomson Financial/First Call of $5.08 per share. The stock closed up 23 cents to $26.02. See full story.
Continental Airlines (CAL: news, chart) said it lost $149 million, or $2.58 per share in the fourth quarter, versus a profit of $44 million, or 70 cents a share in the same period a year ago. Excluding a government grant as part of the Air Transportation and System Stabilization Act and other charges, the airliner posted a loss from operations of $220 million, or $3.81 per share, narrower than the average analyst forecast compiled by Thomson Financial/First Call of $4.49 loss per share. Revenue for the period fell 28 percent to $1.74 billion. The stock closed up $1.71 to $31.10.
Teradyne (TER: news, chart) reported a fourth-quarter loss of $112.6 million, or 63 cents a share, on revenue of $220.2 million. During the same quarter last year, net income was $132 million, or 74 cents a share, on revenue of $821.7 million. Excluding charges, Teradyne's loss from operations was $75.6 million, or 42 cents a share. Analysts surveyed by Thomson Financial/First Call expected a loss of 43 cents a share on revenue of $213.7 million, on average. For the first quarter, the chip equipment maker expects a loss of 40 cents to 50 cents a share on revenue of $200 million to $250 million. Analysts had expected a loss of 37 cents a share on revenue of $219 million, on average. Shares closed down $4.75 to $28.75.
DoubleClick (DCLK: news, chart) said it lost 48 cents a share in the fourth quarter and $2.02 for the full year. Excluding non-cash and one-time charges, the online media company said it earned a penny a share. It broke even in the same period a year ago. Analysts expected DoubleClick to lose 5 cents. Quarterly sales fell 27 percent to $96 million from $132 million in the year-ago period. But the revenue number was higher than the $88 million in sales analysts' expected. DoubleClick projects 2002 revenues between $330 and $400 million, down from $406 million generated in 2001. Analysts currently estimate 2002 revenues to be $388 million. Shares closed down 27 cents to $12.36.
Intel (INTC: news, chart) reported fourth-quarter net income of $504 million, or 7 cents a share, compared with net income of $2.2 billion, or 32 cents a share, during the same quarter last year. Revenue was $6.98 billion compared with $8.7 billion during the same quarter last year. Excluding acquisition-related costs, income was 15 cents a share compared with 38 cents a share during the same quarter last year. Analysts surveyed by Thomson Financial/First Call expected earnings, excluding charges, of 11 cents a share on revenue of $6.83 billion. As recently as Dec. 6, Intel said its sales would be $6.7 billion to $6.9 billion. The company did not provide an earnings target. Intel shares closed down 97 cents to $33.71.
Brio Software (BRIO: news, chart) reported a third-quarter loss excluding items of $968,000, or 3 cents a share, wider than a year-ago loss of $260,000, or 1 cent a share, but 2 cents narrower than the average estimate of analysts polled by Thomson Financial/First Call. Including non-recurring expenses and stock compensation charges, the Santa Clara, Calif., developer of business intelligence software lost $5 million, or 17 cents a share. Revenue dipped in the latest three months to $28.2 million from $38.9 million in the same period a year earlier. Shares closed down 86 cents to $3.50.
Rockwell Collins (COL: news, chart) reported first-quarter earnings of $48 million, or 26 cents a share, down from pro forma earnings of $60 million, or 32 cents a share, in the same period a year earlier, but 4 cents ahead of the average estimate of analysts polled by Thomson Financial/First Call. Sales tumbled 4 percent in the latest three months to $563 million from $539 million in the same period a year earlier. Looking ahead, the Cedar Rapids aviations electronics and communications firm forecast earnings of 25 to 30 cents per share on revenue of roughly $600 million in the second quarter, and earnings of $1.15 to $1.25 per share on revenue of roughly $2.5 billion in fiscal 2002. Shares closed up 20 cents to $19.91.
Keep the Faith!
M&M Man
