Electro Scientific Industries Inc. (NASDAQ:
ESIO -
News) shares fell 6.5% Friday after the company reported second-quarter net earnings of $3.79 million, or 13 cents a share, compared with $3.19 million, or 11 cents a share, during the year-ago period. The Portland, Ore.-based provider of manufacturing systems to the electronics market posted revenue of $59.3 million vs. $48.6 million. Analysts polled by Thomson First Call had forecast second-quarter earnings of 16 cents a share on revenue of $59 million. Additionally, the company said it expects third-quarter shipments and revenue of $55 million to $65 million, and a gross margin increase of 2 to 3 percentage points from the second quarter.
Global Payments Inc. (NYSE:
GPN -
News) shares tumbled 16% after the company reported net income of $34 million, or 42 cents a share, for the second quarter ended Nov. 30, up from $30.6 million, or 37 cents, earned during the same period during fiscal 2006. The Atlanta-based provider of electronic transaction processing services generated quarterly revenue of $260.7 million, up 19% from the prior year's $219.7 million. Adjusted to exclude one-time items, the company said earnings were 44 cents a share in the latest quarter, up from 38 cents a year earlier. Analysts, were looking for earnings of 44 cents a share on revenue of $260 million, according to the average estimate compiled by Thomson First Call. In addition, Global Paymemts affirmed its full-year forecast calling for a profit of $1.79 to $1.85 a share, excluding the impact of stock-option expenses. The company also revised its projected revenue range for the year to $1.057 billion to $1.069 billion. The First Call-derived average forecasts for fiscal 2007 stand at $1.87 a share and $1.069 billion, respectively.
Herbalife Ltd. (NYSE:
HLF -
News) shares plunged 24% after the company forecast fourth-quarter 2006 sales of $482.7 million to $484.7 million, and said it still sees earnings in the range of 52 cents to 55 cents a share, excluding expenses associated with its realignment. For full-year 2007, the company reaffirmed its earnings forecast of $2.40 to $2.47 a share, excluding items. For the first-quarter of 2007, the Los Angeles-based herbal supplement maker forecast earnings of 50 cents to 55 cents a share on sales growth of 6% to 10%.
Lenox Group (NYSE:
LNX -
News) shares tumbled 37% after the company said Susan Engel, its chairwoman and chief executive, has resigned, effective immediately. In a statement, Engel said she and the board of directors agreed that "this is an appropriate time for the company to bring in an individual with substantial operational expertise and skills that will complement the strengths of the existing management team." Stewart Kasen, lead director of the Lenox board, will assume the role of chairman, while Marc Pfefferle, a partner at Carl Marks Advisory Group, LLC, becomes interim chief executive. Engel said the company's 2006 results will fall short of its expectations, impacted by slower than expected sales and lower than expected margins as it focused on an effort to liquidate excess inventory. Lenox now expects that its 2006 loss from continuing operations, excluding items, will be between 20 cents and 30 cents a share.
Medifast Inc. (NYSE:
MED -
News) shares lost 6.4% after the company said Bradley MacDonald will transfer his responsibilities as chief executive to Michael McDevitt, the company's president and chief financial officer, on March 1. MacDonald will continue to serve as executive chairman of the Owings Mills, Md.-based weight-loss company. As part of a board-approved succession plan, McDevitt will retain CFO responsibilities and has selected Margaret MacDonald to be president and chief operating officer.
Micrel Inc. (NASDAQ:
MCRL -
News) shares sank 8.1% after the company cut its outlook for its fiscal fourth quarter ended Dec. 31. Micrel now expects fourth-quarter earnings of 9 cents to 10 cents a share on revenue of $64 million to $65 million. The San Jose, Calif.-based chipmaker had previously forecast earnings of 11 cents to 13 cents a share on revenue of $67 million to $70.5 million. The company said the revenue shortfall is primarily a result of weakness in demand during the last two weeks of December across its end markets. Micrel added that it expects first quarter 2007 revenue to increase sequentially from the fourth quarter of 2006.
Motorola (NYSE:
MOT -
News) shares dropped 7.8% in heavy trading after the world's No. 2 mobile phone maker cut its fourth-quarter sales and profit forecast as handset prices fell amid fierce competition..
Nokia (NYSE:
NOK -
News) shares fell 5.3% after the company was downgraded to neutral from outperform at Credit Suisse. The firm said the handset maker's fourth quarter is expected to be weak, with continued average selling price and gross margin pressure. "Given the near term risk, we are issuing a trading sell," the bank added.
Nvidia (NASDAQ:
NVDA -
News) shares lost 6.3% after the company was downgraded to neutral from buy at American Technology Research, citing valuation.
Openwave Systems (NASDAQ:
OPWV -
News) shares fell 5.7% after the company forecast a second-quarter per-share loss of 24 cents, or a loss of 8 cents to 9 cents on a pro forma basis, on revenue of $83 million to $84 million. The pro forma loss outlook excludes stock-based compensation expense of 8 cents a share, amortization of acquisition-related costs of 6 cents a share, and restructuring and other expenses of 2 cents a share. The Redwood City, Calif.-based software company also said it has authorized a $100 million share buyback program, scheduled to begin later this month. Additionally, Openwave said it expects third-quarter pro forma earnings to be breakeven on a per-share basis, on revenue of $85 million to $90 million. For the fourth quarter, the company said it expects pro forma earnings to increase slightly from the prior quarter on revenue of revenue of $90 million to $95 million.
PC Connection (NASDAQ:
PCCC -
News) shares sank 105 after the company was downgraded to underperform from market perform at Raymond James on valuation concerns.
Pinnacle Entertainment (NYSE:
PNK -
News) shares fell 9.9% after the company said it plans to offer 10 million common shares from a shelf registration. The Las Vegas casino company said it will grant underwriters an option to purchase up to 1.5 million shares. Pinnacle expects to have 58.2 million common shares outstanding after the offer. The company plans to use the proceeds for one or more of its capital projects.
RightNow Technologies Inc. (NASDAQ:
RNOW -
News) shares fell 8.2% after the company said it expects fourth-quarter results to come in below its previous outlook. The Bozeman, Mont.-based company had previously forecast results in a range of a net loss of 2 cents a share to breakeven. RightNow also said it expects fourth-quarter revenue of $28 million.
UAP Holding Corp. (NASDAQ:
UAPH -
News) shares lost 7.8% after the company reported a fiscal third-quarter net loss of $13.2 million, or 26 cents a share, compared with a net loss of $9.35 million, or 19 cents a share, in the year-ago period. Revenue at the Greely, Colo.-based distributor of agricultural and non-crop inputs rose 16% to $375.7 million from $323.1 million. UAP revised its fiscal 2007 earnings forecast to a range of $1.15 to $1.25 a share, excluding charges related to the refinancing of debt.
Virage Logic Corp. (NASDAQ:
VIRL -
News) shares sank 10% after the Fremont, Calif.-based provider of intellectual property for the design of integrated circuits said late Thursday it expects to post a fiscal first-quarter net loss of 3 cents to 8 cents a share on revenue of $11 million to $12 million. In addition, the company announced that Adam Kablanian, a company co-founder, has resigned as president and chief executive effective immediately and will become Virage Logic's chairman. Dan McCranie, previously executive chairman, will become president and CEO effective immediately.
Westaff Inc. (NASDAQ:
WSTF -
News) shares tumbled 17% after the Walnut Creek, Calif.-based staffing services provider late Thursday reported fourth-quarter net earnings of $2.6 million, or 16 cents a share, down from $18.8 million, or $1.14 a share, in the year-ago period. Last year's fourth quarter included a $16.7 million deferred tax valuation allowance reversal. Revenue in the quarter ended Oct. 28 fell to $196.9 million from $201 million. Westaff said it is experiencing "some softening in domestic revenues" in the first fiscal quarter of 2007 when compared with last year. However, the company said there is "a reasonable chance" its first-quarter net income will improve from a year ago.
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