7:28 CASB Cascade Bancorp pre-announced an expected Q4 2007 provision for credit losses of $7.5 mln (Pre-Tax) with resulting net income for the quarter and FY estimated at $5.4 mln and $35.2 mln, respectively (13.82 +0.04)
Co pre-announced it expects to record a provision for credit losses of approximately $7.5 mln (pre-tax) for the fourth quarter of 2007 to increase the Company’s level of reserves primarily related to its portfolio of residential land acquisition and development (A&D) loans and to record approximately $3.8 mln in net charge-offs, a majority of which is against loans affected by the real estate downturn. With these adjustments, the Company estimates fourth quarter 2007 net income at approximately $5.4 mln or $0.19 per diluted share, and full year 2007 net income at approximately $35.2 mln or $1.23 per diluted share. In addition, Cascade also pre-announced higher non performing assets and a compression of its net interest margin as described below.
17:23 OSIR Osiris Therapeutics awarded Department of Defense contract for Prochymal fully valued at $224.7 mln.. stock halted; resumption time set at 17:50 ET (12.57 +0.30)
Co announces that it has been awarded a $224.7 mln contract, including purchase options, from the United States Department of Defense to develop and stockpile Prochymal, an adult stem cell therapy, for the repair of gastrointestinal injury resulting from radiation exposure. Under the terms of the contract, the DoD will provide funding to Osiris for the development of Prochymal for acute radiation syndrome (ARS) in two stages, with an initial amount of $4.2 million in 2008. Upon FDA approval for ARS, the contract provides for the purchase of up to 20,000 doses, at $10,000 per dose, of Prochymal in four 5,000 dose increments. Prochymal was selected by the DoD as part of an open and competitive solicitation with pre-specified criteria that included safety and efficacy data, manufacturing capacity, soundness of the development plan, and time to final product delivery.
17:17 FOR Forestar Real Estate announces venture with Jones Co (22.44 -0.76)
The co announced it has entered into a joint venture with The Jones Co. The venture includes approximately 17,000 acres of land in Georgia owned by The Jones Company. This land is located principally in Paulding, Polk and Haralson Counties, and is subject to a long-term timber lease with Forestar Real Estate Group.
17:12 SONC Sonic beats by $0.01, reports revs in-line; guides FY08 (Aug) EPS in-line (19.98 -1.62)
Reports Q1 (Nov) earnings of $0.22 per share, $0.01 better than the First Call consensus of $0.21. Co reaffirms FY08 EPS growth guidance of 15-17% which equates to $1.10-1.12 vs $1.12 First Call consensus. Sonic’s system same-store sales rose 2.1% in the first quarter of fiscal 2008 versus 3.4% in the year-earlier period.
17:10 BDAY Celebrate Express reports Q2 EPS of $0.05 vs $0.07 in 2Q07; revs rose 10% YoY to $31.3 mln – no ests (7.84 -0.06)
17:08 SONC reaffirms FY08 EPS growth guidance of 15-17% which equates to $1.10-1.12 vs $1.12 First Call consensus;
17:05 SONC prelim $0.22 vs $0.21 First Call consensus; revs $190.2 mln vs $191.50 mln First Call consensus (19.98 )
17:05 RGR Sturm Ruger announces it has repurchased 2.2 mln shares of its common stock in Q4 2007 (8.01 -0.37)
17:04 ATW Atwood Oceanics announces an award of a drilling contract tied to construction of a semisubmersible drilling unit (104.77 +2.85)
The co announces “that its wholly owned subsidiary, Atwood Oceanics Pacific Limited, has been awarded a contract by Chevron Australia to provide a newly constructed Mobile Offshore Semisubmersible Drilling Unit for a firm three (3) year period, with an option to extend the firm period to six (6) years… The contract provides for an operating dayrate of approximately $470,000, if the firm commitment is three (3) years and approximately $450,000, if the option is exercised to extend the firm commitment period to six (6) years. Both dayrates are subject to adjustment pursuant to cost escalation provisions of the contract. To provide the drilling rig required by this contract, AOPL has executed a construction contract with Jurong Shipyard to construct a Friede & Goldman ExD Millennium Semisubmersible Drilling Unit… AOPL estimates the total cost of the rig (including administrative and overhead costs and capitalized interest) will be $570 mln to $590 mln…”
17:04 MCRL Micrel cuts Q4 guidance below consensus (7.82 )
Co lowers Q4 EPS guidance to $0.10-0.11 vs $0.13 First Call consensus, down from prior guidance of $0.13; lowers rev guidance to $64.00 mln vs $66.89 mln First Call consensus, down from from $66.5-67.8 mln prior guidance. The shortfall in revenue is primarily a result of lower than anticipated turns-fill orders received during the last few weeks of Q4. The turns-fill deficit was primarily from China-based wireline communications customers and Korean wireless handset manufacturers, as these customers moderated product deliveries to control inventory levels. Fourth quarter business results in other regions and end markets generally came in as expected. The book-to-bill ratio for the fourth quarter was less than one. The co’s preliminary estimate is that 1Q08 revenues will be flat from fourth quarter 2007 levels (consensus is for $68.31 mln).
17:03 ITWO i2 Tech announces Directors’ intent to not stand for re-election to Board of Directors (12.25 +0.55) -Update-
Co announced that two of the Company’s current directors, Harvey Cash and Michael McGrath, have notified the co of their intention to not stand for re-election at the Company’s 2008 annual meeting of stockholders. Additionally, the co confirmed that it has received notice that R2 Top Hat, Ltd., an affiliate of Amalgamated Gadget LP, intends to nominate J. Coley Clark and Richard L. Hunter for election to the Company’s board of directors at the Company’s 2008 annual meeting. The Company’s board of directors and nominating and governance committee will consider these nominations, as well as other qualified candidates, in accordance with their procedures.
17:01 MCRL lowers Q4 guidance; sees EPS of $0.10-0.11 vs $0.13 First Call consensus; revs $64.00 mln vs $66.89 mln First Call consensus
17:00 JSDA Jones Soda names Joth Ricci as Chief Operating Officer (7.19 -0.22)
Co announces that Joth Ricci has been named COO of the company. Ricci is currently General Manager of Columbia Distributing Company. He will join JSDA on January 7, 2008.
16:35 WX WuXi PharmaTech promotes Edward Hu to COO (30.30 +1.46) -Update-
16:33 RTN Raytheon: U.S. Pentagon names RTN as chief supplier for potential $328 mln missile sale to Kuwait – Reuters (61.93 +1.93)
16:33 HRB H & R Block comment on proposed RAL restrictions (17.75 -0.86) -Update-
The co says “We look forward to working with the IRS on continuing to develop best practices for refund anticipation loans, just as we did over the past two years on the privacy rules announced today, which reflect many of H&R Block’s existing guidelines. H&R Block’s tax professionals are not compensated on the sale of ancillary products, so there is no incentive for them other than serving taxpayers’ best interests. In addition, RALs are currently regulated by 10 federal laws and IRS rules. The typical RAL at H&R Block costs about 2% of the principal, or less than the cost of a credit card advance, bank overdraft, or in many cases, using an ATM.”
16:30 WX WuXi PharmaTech to acquire AppTec Laboratory Services for $151 mln; deal to be immediately accretive (30.30 +1.46)
The co announces it has has signed a definitive agreement to acquire AppTec Laboratory Services. The acquisition of AppTec allows WuXi PharmaTech to immediately obtain biologics capabilities and expertise, gain a significant U.S. operational footprint, and expand its customer base and addressable market size. The transaction consideration totals approximately $151 million with the assumption of AppTec debt totaling approximately $11.7 mln. AppTec’s full year 2007 revenue is expected to be in the range of $70 mln to $72 mln. The transaction is expected to be immediately accretive to WuXi PharmaTech’s earnings per share, excluding the amortization of acquired intangible assets and one-time charges related to the acquisition.
16:23 IIVI II-VI announces change in independent registered public accounting co (31.84 +2.22) -Update-
The co announces that it has engaged Ernst & Young as its independent registered public accounting co to perform the co’s annual audit for its fiscal year ending June 30, 2008 including the review of the co’s fiscal second and third quarter financial statements that will be filed during the fiscal year ending June 30, 2008. The co had previously engaged Deloitte & Touche to perform such audit services.
16:19 BBBY Bed Bath & Beyond reports Q3 (Nov) results, beats on revs; guides Q4 EPS below consensus (27.40 -0.96)
Reports Q3 (Nov) earnings of $0.52 per share, includes $8 mln tax gain, may not be comparable to the First Call consensus of $0.52; revenues rose 10.9% year/year to $1.8 bln vs the $1.77 bln consensus. Co issues downside guidance for Q4, sees EPS of $0.64-0.67 vs. $0.78 consensus; sees flat comps for Q4.
16:17 FINL Finish Line misses by $0.02, reports revs in-line (2.21 -0.04)
Reports Q3 (Nov) loss of $0.17 per share, excluding non-recurring items, $0.02 worse than the First Call consensus of ($0.15); revenues fell 4.0% year/year to $268.7 mln vs the $271.1 mln consensus. Co reports Q3 comparable store net sales -3.6%. “We are implementing both operating and product initiatives to drive improvements in our business. Our customers are responding well to the new brands that we’ve recently introduced. Going forward, we see growth opportunities in both performance and sport style product and will continue to emphasize premium offerings as part of our efforts to differentiate Finish Line and create enthusiasm with our customers.”
16:16 SSW Seaspan Signs contracts to build 5 new 4,520 TEU vessels and secures 12-year charters with K-Line (25.01 +0.01)
Co announces that it has signed contracts to build five new 4,520 T.E.U. container vessels with Samsung Heavy Industries. Concurrent with the signing of the newbuilding contracts, the co has signed 12-year time charters with Kawasaki Kisen Kaisha. The co also announced debt financing for these newbuildings will be provided from a portion of its more than $900 mln of new debt financings that were completed today. Co states, “With 39 vessels scheduled for delivery between 2008 and 2011, including six vessels to be delivered this year, Seaspan will grow its estimated annual revenue and EBITDA to more than $700 million and $550 million, respectively…”
16:16 EMR Emerson sells Brooks Instrument to American Industrial Partners (55.83 +0.66)
Co announces it sold its Brooks Instrument unit on December 31, 2007, to American Industrial Partners Capital Fund for approximately $100 mln in cash.
16:16 SEPR Sepracor: Timothy Barberich to resign as Executive Chairman and will continue to serve as Chairman of the Board (26.55 +0.61)
The co announces that Timothy Barberich will retire as an executive of the co on or prior to May 13, 2008 and is expected to continue to serve as Chairman of Sepracor’s Board of Directors. Mr. Barberich also plans to serve as an advisor to the co through December 2009.
16:15 FINL prelim ($0.17) vs ($0.15) First Call consensus; revs $268.7 mln vs $271.09 mln First Call consensus
16:15 BBBY sees Q4 $0.64-0.67 vs $0.78 First Call consensus; sees flat comps for Q4
16:15 BBBY prelim $0.52 vs $0.52 First Call consensus; revs $1.8 bln vs $1.77 bln First Call consensus
16:14 LNDC Landec reports EPS in-line, misses on revs; reiterates FY08 rev growth of 10-15% (12.62 )
Reports Q2 (Nov) earnings of $0.12 per share, in-line with the First Call consensus of $0.12; revenues rose 6.9% year/year to $59 mln vs the $61.4 mln consensus. Co says they are not changing their original guidance for fiscal year 2008. For FY08 sees revs growing by 10%-15% and, after excluding the following non-recurring events from fiscal year 2007, they plan to grow pre-tax net income 45%-55% and net income after tax 30%-40% compared to fiscal year 2007.
16:12 Revised worldwide semiconductor sales figures for 2007
The Semiconductor Industry Association released revised worldwide semiconductor sales figures for the year 2007. The data reflects upward revisions in the DRAM sales data for the period Jan through Sept 2007 made by the World Semiconductor Trade Statistics. For the year to date period (January through November 2007), DRAM sales are $1.35 bln or 4.8% higher than previously reported. As a result, for the same time period, total semiconductor sales are also $1.35 bln or 0.6% higher than previously reported. Jan through Nov 2007 sales are running 3.4% ahead of the same time period in 2006.
16:11 IVD IVAX Diagnostics announces resignation of President and Chief Executive Officer (0.60 +0.02)
Co announced today that Giorgio D’Urso is resigning as President and Chief Executive Officer of the co and as a member of the Board of Directors of the co, effective January 10, 2008. The co also announced that Kevin Clark, the co’s Chief Operating Officer since September 2007, has been appointed acting Chief Executive Officer of the co effective from Mr. D’Urso’s resignation until the time the co names Mr. D’Urso’s permanent
16:08 IFC Irwin Fincl sees Q4 consolidated loss, including discontinued operations, in a range of $15 to $20 mln (6.93 -0.12)
Co sees Q4 consolidated loss, including discontinued operations, in a range of $15 to $20 mln. Results include restructuring charges of $5 mln. The co announced that it expects to report a loss from operations for the fourth quarter of 2007 due to the effects of conditions in the mortgage market and housing markets. “… During the fourth quarter, we took several steps to align operational and staffing costs to the current environment. These will be reflected in restructuring charges of approx $5 mln during the quarter; we expect at this point to take less than $2 mlnmore in the first quarter,”
16:08 LDIS Leadis Tech acquires Acutechnology Semiconductor (2.80 +0.01)
The co announces the acquisition of Acutechnology Semiconductor, a privately held analog semiconductor company specializing in power management technologies for industrial and consumer markets. Under terms of the agreement, Leadis acquired Acutechnology for $5 million in cash.
16:06 LNDC prelim $0.12 vs $0.12 First Call consensus; revs $59 mln vs $61.39 mln First Call consensus
16:06 LION Fidelity Southern sees Q4 earnings under increasing pressure; sees Q4 loan losses of approx $3.5 mln (9.02 +0.52)
Co sees Q4 provision for loan losses to be approx $3.5 mln, compared to $2.8 mln in Q3. Co’s non-performing assets increased because of continuing deterioration in residential real estate although co’s residential construction lending is only 20% of their loan portfolio. Nonperforming assets will increase to approx 1.75% of total loans and ORE at Y07. An additional charge of approx $500k will be assessed for settlement of the Visa litigation with American Express and a reserve for the lawsuit between Visa and Discover Financial Services. Co sees positive Q4 earnings, but increases in the provision for loan losses, the expenses related to the liquidation of other real estate, and the impact of nonperforming loans on interest income will continue to have a negative effect on earnings for the near term.
16:05 THRM Thermage appoints John Glenn as Chief Financial Officer (6.25 +0.10)
Co announces the appointment of John Glenn as Chief Financial Officer. Mr. Glenn, the former CFO of Cholestech Corporation, succeeds Laureen DeBuono, who resigned from the co after five years of service to pursue broader executive leadership opportunities in the life sciences sector. Ms. DeBuono will remain with the co through February.
16:05 GPN Global Payment beats by $0.03, beats on revs; guides FY08 EPS in-line, revs in-line (45.21 -0.06)
Reports Q2 (Nov) earnings of $0.48 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.45; revenues rose 18.5% year/year to $308.8 mln vs the $297.1 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.89-1.96 vs. $1.94 consensus; sees FY08 revs of $1.23-1.26 bln vs. $1.22 bln consensus.
16:04 TGT Target Correction: CNBC segment highlighted investment losses in Ackman’s Pershing Square stake… not a decrease in the actual stake, as we previously reported at 15:48 (49.57 +0.06) -Update-
CNBC’s David Faber highlighted investment losses in Ackman’s Pershing Square stake in TGT. He noted that Pershing Square appears to be a long-term investor in TGT, given Ackman’s comments out yesterday (from a letter dated Dec 27) suggesting the stock will be $120 in three years. (Our previous 15:48 comment has been removed)
16:04 ANGO AngioDynamics reports EPS in-line, revs in-line; reaffirms FY08 EPS guidance, revs guidance (18.93 -0.33)
Reports Q2 (Nov) earnings of $0.13 per share, in-line with the First Call consensus of $0.13; revenues rose 70.4% year/year to $41.5 mln vs the $41.3 mln consensus. Co reaffirms guidance for FY08, sees EPS of $0.56-0.60 vs. $0.58 consensus; sees FY08 revs of $170-175 mln vs. $172.33 mln consensus.
16:03 FDX FedEx says it is preparing to meet with the IRS audit team to review their tentative assessment and to provide an initial response (87.36 +1.20)
Co announces that, in response to a tentative assessment by the Internal Revenue Service on Dec 20, 2007 regarding the classification of owner-operators at FedEx Ground, the Company is preparing to meet with the IRS audit team to review their tentative assessment and to provide an initial response. It is expected that the meeting will occur in the spring of 2008 and that a final resolution of this matter will not occur for some time. The co notes that some reporting concerning this matter has been inaccurate.
16:03 ARTC ArthroCare reaffirms Y07 and Y08 guidance; acquires reimbursement service provider (50.26 -1.25)
Co announces it has acquired DiscoCare, Inc., a third-party billing and reimbursement service provider, for $25 mln in cash plus potential future milestone payments. The acquisition is not expected to have a material impact on Y08 earnings. Co reaffirms Q4 GAAP EPS of $0.48-0.50 may not compare to $0.49 consensus; co sees rev growth at least 20%, with strong rev growth across all business units. Co sees Y08 rev growth of at least 20%.
16:03 LDG Longs Drug reports Dec same store sales -1.5% (42.91 -3.09)
16:02 GPN sees FY08 $1.89-1.96 vs $1.94 First Call consensus; sees revs $1.23-1.26 bln vs $1.22 bln First Call consensus
16:01 BMRN Biomarin Pharm and Genzyme restructure Aldurazyme 50/50 joint venture (37.19 +0.55)
BioMarin Pharmaceutical (BMRN) and Genzyme (GENZ) announce a restructuring of their joint venture regarding Aldurazyme (laronidase). Under the revised structure, the operational responsibilities for BMRN and GENZ will not significantly change. GENZ will continue to globally market and sell Aldurazyme for mucopolysaccharidosis I (MPS I) and BMRN will continue to manufacture Aldurazyme. As of Jan 1, 2008, instead of sharing all costs and profits equally through the 50/50 joint venture, GENZ will record sales of Aldurazyme and will pay BMRN a tiered payment ranging from approx 39.5 to 50% of worldwide net product sales, which will also be recorded by BMRN as product revenue. Under the revised structure, payments are projected to result in both BMRN and GENZ receiving approx the same profit as under the original joint venture structure. BMRN will receive all of the benefits from increased manufacturing efficiencies and GENZ will receive all of the benefits from increased commercialization efficiencies. Certain research and development activities related to Aldurazyme and intellectual property will continue to be managed in the joint venture on a 50/50 basis.
16:01 GPN prelim $0.48, ex items vs $0.45 First Call consensus; revs $308.8 mln vs $297.12 mln First Call consensus
16:01 ANGO reaffirms FY08 $0.56-0.60 vs $0.58 First Call consensus; sees revs $170-175 mln vs $172.33 mln First Call consensus
16:00 KOSN Kosan Biosciences opens TIME-1 pivotal phase 3 trial in multiple myeloma (3.50 -0.04)
The co announces that the Tanespimycin in Myeloma Evaluation or TIME-1 pivotal Phase 3 trial for tanespimycin as a potential treatment for multiple myeloma is open for enrollment. TIME-1 is a pivotal Phase 3 trial comparing tanespimycin in combination with bortezomib with bortezomib alone in patients following a single prior course of treatment. Kosan has completed both a Special Protocol Assessment with the U.S. Food and Drug Administration and a Scientific Advice process with the Committee for Medicinal Products for Human Use of the centralized European Medicines Agency, thus, providing what the company believes is a validated path to registration in many major world markets for the TIME-1 trial. TIME-1 is the most advanced Hsp90 inhibitor clinical program in the industry, underscoring the company’s leadership in this new class of anticancer therapies.
16:00 RF Regions Fincl increases 4Q07 loan loss provision (23.27 -0.01)
Co announcesit plans to increase its loan loss provision to approx $360 mln in Q4, an increase of approx $270 mln from Q3 of 2007. Regions’ decision was prompted by weakening credit quality, primarily in its residential builder loan portfolio. 4Q07 net loan charge-offs and non-performing assets are expected to rise to approx an annualized 46 basis points of average loans and 91 basis points of period-end loans and foreclosed properties, respectively. The total allowance for credit losses is expected to be strengthened to about 1.45% of net loans at Dec 31, 2007, from the prior period’s 1.19%. “We are experiencing a sharp slowdown in real estate demand, especially in parts of Florida and Georgia, and are responding aggressively to counter its effects,” In addition to increasing the loan loss provision, the co is implementing several measures to support the management of this portion of its portfolio, including reassignment of highly experienced, key relationship managers to focus on work-out strategies for distressed borrowers. While the co expects that these actions will help mitigate the overall effects of the credit down cycle, it also expects that weakness in the homebuilder segment will continue well into 2008. Accordingly, it is anticipated that Regions’ non-performing asset and charge-off levels will continue to increase as the year progresses. Despite more challenging residential real estate market conditions, loans within the co says their residential first mortgage and home equity portfolios generally continue to perform well. Other charges the co also expects to record approx $131 mln of additional pre-tax charges in the fourth quarter of 2007, excluding merger-related expenses.
16:00 ARTC reaffirms Y07 and Y07 guidance
16:00 ANGO prelim $0.13 vs $0.13 First Call consensus; revs $41.5 mln vs $41.32 mln First Call consensus
