The story of Goldilocks continues . . .
08:33 ENLV Enliven Marketing reports Q4 EPS of ($0.06) vs ($0.03) single estimate; reports revs up 65% yr/yr to $7.1 mln vs $6.9 mln single estimate (1.00 )
08:33 SGMS Scientific Games Racing signs new contracts with Nassau; expected to generate revenue of $12 mln (18.77 )
Co announces that it signed two new contracts with Nassau Regional Off-Track Betting Corp. The two contracts have a term of six years and are expected to generate annual revenue of approx $2 mln.
08:32 DIOD Diodes guides revs below consensus for Q1 (22.06 )
Co issues downside guidance for Q1 (Mar), sees Q1 (Mar) revs of $95-97 mln vs. $98.60 mln First Call consensus. Co continues to expect comparable gross profit margin to the fourth quarter of 2007. The revenue guidance reflects seasonality combined with the impact of the overall weakening of the global economy, as well as the Company’s foundry and subcontracting business continuing to show greater weakness than its core revenue drivers.
08:32 S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +10.5.
Futures spike on a better than expected inflation reading on now point to a positive start to the trading day. Just reported, February CPI was uncchanged, compared the expected rise of 0.3%. Excluding food & energy, CPI was also flat, which was less than than the expected rise of 0.2%. That leaves CPI up 4.0% year over year, and core CPI up 2.3% year-over-year.
08:31 SFSF SuccessFactors announces it was granted temporary restraining order against Softscape (8.22 )
08:31 CORE Core-Mark reports Q4 EPS of $0.46 vs $0.33 single estimate; reports revs of $1.37 bln vs $1.39 bln single estimate (24.54 )
Co sees Y08 revs of approx $6.0 bln vs $6.10 bln single estimate.
08:31 MU Micron: Caris lowering ests and tgt to $6 (6.49 )
Caris says MU is clearly not sitting still during this difficult period for the memory industry — it continues to aggressively lower its cost structure and advance its technology roadmap, and has plans to divest the CMOS image sensor business and pursue joint ventures with other manufacturers. Firm cuts their tgt to $6 from $6.50. Firm’s FY08/09 EPS ests go to ($1.25)/$0.00 from ($0.71)/$0.41 (consensus ($0.95)/$0.23).
08:31 NCT Newcastle Investment decreases common stock dividend to increase retained earnings and declares its preferred stock dividends (10.50 )
Co announces that its Board of Directors has declared a quarterly dividend of $0.25 per common share (down from last qtrs dividend of $0.72). “Given the current market environment, we believe that retaining a significant portion of our earnings to make accretive investments and increase liquidity is in the best interest of our shareholders. Retained earnings will be available to invest in new assets, to buy back stock and to increase cash. Management expects the $0.25 per share dividend to reflect approximately fifty percent of the cash generated from operations in the quarter.”
08:31 DIOD guides revs below consensus for Q1
08:31 BFLY Bluefly announces a 1-for-10 reverse stock split; record date for reverse split is April 3, 2008 (0.42 )
08:31 ECONX February CPI y/y +4.0% vs +4.3% consensus
08:30 ECONX February CPI m/m unchanged vs +0.3% consensus
08:30 ECONX February Core CPI m/m unchanged vs +0.2% consensus
08:30 ECONX February Core CPI y/y +2.3% vs +2.4% consensus
08:28 BONDX Working Higher… 10-yr +11/32 yielding 3.483%
The market is repairing some of the modest damage to prices yesterday. The overnight action was light with trade deferring to an early run of data this morning. Risk aversion remains on the front burner but with nothing new for the grinder the market remained locked between dip buyers and profit takers. The 2-10-yr yield spread is a bit steeper at 192.1 as curve trade awaits the big inflation number. Bond prices in the EuroZone were knocked down by a bump in inflation while in Japan, bonds benefited from slumping equities that suffer at the feet of the soaring yen. Treasuries look well supported into the inflation and confidence data but trade may look to book profits quickly if the reports do not have enough juice in them to get prices over their trend high hump (intraday Jan 25 low yield of 3.285% on the 10-yr). Beyond the data, and should the highs hold, the market will revert to technical trade and watching equities while looking ahead to next week’s events. After the Thurs close Venezuela called for payment in euros on some fuel exports, the dollar got clocked running the euro to 1.5650, data added support, while now talk of intervention (Bloomberg), while remote, on the buck’s behalf is giving it back some ground. The yen had taken a run through 100.00 late but gave up easily and is now consolidating near 100.50. Spot gold is near unchanged, but is holding close to record levels at 995.47 (+0.65). Crude has been sliding from records as well in corrective action now 109.90 (-0.43). Data due is CPI (8:30) and UofM sentiment (10). While Fed- head Bernanke speaks in DC late (13). The euro is at 1.5571 and the yen is at 100.4900. For more click here.
08:28 MGAM Multimedia Games: One-month delay and recent weakness results in buying opportunity - Brean Murray (6.12 )
Brean Murray says they would capitalize on the recent weakness in MGAM shares as recent placements suggest that the number of markets served by the co is increasing and that the co is closer to generating significant free cash flow, which should result in additional share repurchases. Firm notes several catalysts over the next three quarters that should drive earnings growth and the valuation to higher levels: 1) growth in Oklahoma following the expansion of a key facility in 3QFY08, 2) sale of Class III games with current and previous customers outside of Oklahoma, 3) growing installed base of games in Mexico, and 4) generation of significant free cash flow.
08:26 SNP Sinopec denies report of projected Q1, Q2 losses - Xinhuanet.com (92.34 )
Xinhuanet.com reports the co has denied a report that it would probably suffer losses in the first two quarters due to high crude prices, the China Securities Journal reported on Friday. “Such reports are groundless and untrue,” an unnamed co official was quoted as saying in reference to an article in Thursday’s 21st Century Business Herald. Refining business undoubtedly lost money, but that was not the case for the whole co, he said. “Sinopec’s oil and gas exploitation, gas stations and chemical segments are very profitable.” It was also untrue that Sinopec booked a January profit of only one bln yuan (140.8 mln U.S. dollars), about a sixth or a seventh of the level in the same month of the past two years, he said. But he recognized that profits in the first quarter declined compared with the year-earlier period. “The company’s refining profitability depends on the market condition and the national policy,” he said. “The current 110 U.S.dollars per barrel on the international market is an appalling price.”
08:23 ARO Aeropostale: Solid 4Q07; elevated 1H08 inventory concerning - Citigroup (26.26 )
Citigroup says ARO’s 4Q07 EPS upside was driven by by better than exected SG&A (+4c), interest income (+1c), share count (+1c) partially offset by worse gross margin (-4c). Firm says ARO’s 4Q07 inventory jumped an alarming +35% or +20% per square foot reportedly due to the early Easter rather than a change in “controlled inventory management.” However, they remain cautious as no other retailer posted elevated inventory levels despite the same calendar. Inventory also planned to remain inflated at end-1Q08. Firm is remain cautious on high inventory levels, peakish gross margins, and ongoing SG&A deleverage
08:23 WSCI WSI Industries, Inc. provides business update, expects Q2 sales ~$6.4 mln (7.68 )
Co provides business update and announced a new customer in their energy business. Co reports that their energy business, which consists of customers that provide oil and gas drilling and production components, has experienced further growth. The Company has secured a new customer and expects that this first program will generate approximately $2.0 million in sales in fiscal 2009. Co also announces that it expects Q2 sales will amount to ~$6.4 million which would represent a 45% increase YoY (no estimates).
08:23 HOG Harley-Davidson: Details of Citigroup removal from Top Picks Live list - firm says stock is at trough level (36.80 ) -Update-
As mentioned at 7:03, Citigroup removes HOG (Sell) from their Top Picks Live list, saying 1Q08 trends have stabilized somewhat and they think trends improved in Feb. vs Jan. Firm thinks the stock is trading at trough level, and that it may not have that much more downside to their $34 price tgt.
08:22 DXCM Dexcom upgraded to Hold at Lazard (4.48 )
Lazard upgrades DXCM to Hold from Sell saying now that FDA approval of Abbott’s Freestyle Navigator Continuous Glucose Monitor is a given and with consensus estimates down significantly, they believe DXCM shares have reached the point where most negativity is already factored into the price.
08:22 BSC Bear Stearns: Despite the Federal Reserve’s efforts Wall Street fears a big US bank is in trouble - Times of London (57.00 )
Times of London reports global stock markets may have cheered the US Federal Reserve 2 days ago, but on Wall Street the Fed’s unprecedented move to pump $280 bln into global markets was seen as a sure sign that at least one financial institution was struggling to survive. The name on most people’s lips was Bear Stearns… economists and analysts said that the decision appeared to be driven by an urgent need to stave off the collapse of an American bank. “The only reason the Fed would do this is if they knew one or more of their primary dealers actually wasn’t flush with cash and needed funds in a hurry,” Simon Maughan, an analyst with MF Global, said. Mr Maughan said that the most likely victim was Bear Stearns, the first bank to run into trouble in the sub-prime crisis and the one that, among all wholesale and investment banks, is most reliant upon the use of mortgage securities for raising funds in the money markets. The average financial institution was up 7.5% yesterday after the Fed’s actions, but BSC rose just 1% on massive trading volume,” Mr Maughan said. “The market is telling you it’s Bear Stearns.”
08:20 AUDC Audiocodes: Strong results expected; service provider gaining momentum - Oppenheimer (3.73 )
Oppenheimer says based on tehir channel checks, they believe AUDC is seeing strong demand trends in the March quarter and expects AUDC to beat top and bottom line consensus ests (they model $42.8 mln/$0.07 vs. Street $41.9 mln/$0.06). After a long period of dormant activity, firm believes AUDC is seeing growing momentum in service provider activity and recent contract announcements provide solid near term visibility. Firm also believes AUDC continues to see solid enterprise demand globally despite macro concerns. With shares trading at a 5-year low and growing business momentum, they believe this is a good time to revisit the shares.
08:20 CRI Carter Holdings upgraded to Buy from Hold at Sterne Agee- tgt cut to $17 from $28- based on valuation (14.19 )
08:20 TC Thompson Creek Metals reports Q4 results (20.12 )
TC reports $0.22 vs $0.25 single analyst est, up from ($0.14) in 4Q06; revs rose 31% YoY to $197.8 mln (no rev est). Molybdenum production from the co’s two mines was 3.4 mln pounds in the fourth quarter and 16.3 mln pounds in 2007. Outlook for molybdenum prices remains positive and the co continues to expect its molybdenum production to increase to between 23 and 24.5 mln pounds in 2008 and in excess of 34 mln pounds in 2009. “Molybdenum production from our existing mines is expected to more than double from the 16.3 million pounds recorded in 2007 to at least 34 million pounds in 2009 due to higher ore grades at the Thompson Creek Mine. The Company is considering a possible mill expansion at the Endako Mine and the development of the Davidson Deposit. Both of these expansion projects could add to production starting in 2010. They currently are under review and decisions will be announced in the coming months.” Co also announced that its Board of Directors has approved plans to expand capacity at the Endako Mine from 28,000 to 50,000 tonnes of ore per day beginning in 2010.
08:19 RIMM Research In Motion: Govt tells telcos to save BlackBerry data for 6 months - Economic Times (105.65 ) -Update-
Economic Times reports the Department of Telecom is exploring the possibility of asking RIMM and operators such as Bharti Airtel, Vodafone and Reliance Communications, which provide this service, to create a mirror image of all e-mails and data sent on these devices in India. Besides, DoT may also ask all stakeholders to save the mirror image for a minimum period of six months to address concerns of security agencies. The move comes after intelligence and security agencies expressed concerns that data sent on BlackBerry devices travel through an encrypted security layer and, therefore, cannot be monitored. DoT is also looking at other options such as the possibility of asking RIM to migrate all data traffic originating from Indian mobile networks to servers located in India. At present, e-mail traffic generated by BlackBerry subscribers in India is hosted on RIM’s overseas servers, which cannot be lawfully intercepted by national security agencies.
08:18 ICXT ICX Technolgies downgraded to Market Perform from Outperform at Morgan Keegan (6.24 )
08:17 RIMM Research In Motion: India says not considering banning BlackBerry - Reuters.com (105.65 )
Reuters.com reports India is not considering banning the co’s BlackBerry services at this point of time, the top official in the telecoms ministry said on Friday. Security agencies have raised concerns the service posed a risk as emails sent using it could not be traced or intercepted. “There is no question of banning at this point,” Telecoms Secretary Siddhartha Behura told reporters on the sidelines of an industry conference. “We are not interested that we say BlackBerry will not used in this country,” he said, adding the telecoms department was “very keen” the services should continue. “The interactions are going on with various stakeholders including the home ministry … I do believe it will be resolved,” Telecoms Minister Andimuthu Raja said.
08:16 RDNT RadNet downgraded to Market Perform from Outperform at Morgan Keegan- following delay in the filing of their 10-K combined with the delayed Papastavros closing and expectation of soft Q4 results (7.56 )
08:16 C Citigroup: Color on “Meet and Greet” with CEO Pandit; confident on capital position (21.07 )
Lehman says three months after taking the reins as CEO Vikram Pandit hosted a ‘meet & greet’ with the sell-side. He appeared confident in C’s capital position. Also Pandit described implementing a structure that to firm is somewhat akin to the “Good Bank/Bad Bank” concept. He intends to basically split the company in two (figuratively, not literally): one with ‘good’, core, strategic assets and one with ‘bad’, legacy, non-core positions. He will keep, invest and grow the ‘good’ ones, and divest/sell the ‘bad’ ones. Other priorities appear centered around capital allocation, operating excellence/productivity, risk management and talent management. Longer-term firm sees a great deal of value, which should become more apparent as legacy assets are worked down… Deutsche says C CEO was clear that there is no need to talk about long-term vision when there is so much to do, including improving the infrastructure by improving capital allocation, risk management, and efficiency. Firm says mgmt stressed the process used to determine new capital raised a few months ago, but did not say if the assumptions used as part of this process had changed since they raised capital other than to say that the 10-K provided enhanced disclosure which can be used to help make our own estimates. In this regard, firm feels that the door was left open for additional significant write-downs, particularly given recent market dislocations.
08:15 WIRES On The Wires
Liz Claiborne (LIZ) announces that it has entered into a strategic licensing agreement with Donna Karan International to create a new collection of men’s sportswear for the “better” market in the US and Canada… Expedia (EXPE) announces the acquisition of CarRentals.com, an online car rental marketing and retail firm offering a selection of car rentals direct to consumers.
08:15 AMZN Amazon.com: Despite recessionary conditions, still view AMZN as having one of the strongest fundamental outlooks in the Internet sector - Citigroup (68.70 )
08:15 KNTA Kintera upgraded to Buy at ThinkEquity- tgt $2 (0.79 )
ThinkEquity upgrades KNTA to Buy from Accumulate with a $2 tgt noting Kintera reported weaker-than-expected 4Q results, but a year of improved execution and operating margins gives a cautious, but optimistic view of FY’08. Firm says while the co did not give FY’08 guidance, they believe the co could achieve its first full fiscal year of positive adjusted EBITDA and positive operating cash flow.
08:15 RIO Comp Vale Do Rio closer to Xstrata deal, according to newspaper - DJ (34.18 )
DJ reports the co is close to announcing the acquisition of Anglo-Swiss mining group Xstrata, local newspaper Folha de Sao Paulo reported. According to the report, which quoted sources close to the deal, chief executive officers of Vale do Rio Doce Vale, Xstrata and Glencore Intl met in Rio de Janeiro on Thursday to negotiate the final details. The transaction could amount to $90 billion, said the report, which added that a deal could be announced later Friday.
08:13 AIG American Intl urges ‘fair value’ rethink - FT (42.48 ) -Update-
FT reports the co is urging regulators to change controversial accounting rules on asset valuations to stem the tide of writedowns that have wreaked havoc on Wall Street. Under AIG’s proposal, which has been presented to regulators and policymakers, cos and their auditors would estimate the maximum losses they were likely to incur and only recognize these in their profits. All other unrealized losses would be recorded on the balance sheet but would not affect profits. In AIG’s view, this method would have reduced the impact of the $11 bln writedown on fourth-quarter results to $900 mln. Martin Sullivan, AIG’s chief executive, told the FT that “mark-to-market” rules forced cos to recognize losses even when they had no intention of selling assets at current prices. He said the practice created a vicious circle whereby cos recorded huge losses, lost investors’ confidence and were then forced to raise funds at unfavorable prices.
08:12 ISRG Intuitive Surgical: Initiation details (284.98 )
As mentioned at 7:03 ThinkEquity initiates ISRG with a Buy and a $360 tgt saying Intuitive Surgical is renowned for its growth, and they think it will continue as robotic surgery expands into gynecology via the da Vinci hysterectomy. The firm notes the co plans to increase the concentration of sales reps, which they think will have a major impact in driving growth without compromising profitability. The firm expects Intuitive Surgical’s impressive business model to become more profitable over time and to provide upside to current estimates.
08:11 ECONX CPI - data due out in about 19 min at 8:30ET
The consumer price index (CPI) is a key measure of consumer inflation. Core CPI is used by the Fed as a more stable inflation indicator outside of the global influences on energy and food prices. While the Fed officially uses the core personal consumption price index as its inflation guide, core consumer prices are a very close substitute. Briefing.com expects a lighter 0.1% February rise compared to the 0.3% expectation from the consensus forecast. We sit with the same 0.2% rise in the core that the consensus expects. Energy prices are expected to show the first monthly decline since August as a dip in early February gasoline prices add to the decline provided by the seasonal adjustment. The 20% year-over-year rise in energy prices and the $100+ per barrel price of oil reflect the stronger global demand driven by China, India and other developing countries. Annual CPI growth is expected to edge lower to 4.2% year-over-year, not too far from the 16-year high of 4.7% reached in late 2005. That compares to the modest 2% annual gain in August before the onset of a 34% annualized gain in energy over the fourth quarter. The expected 0.2% rise in the core component leaves a slight softening to a 2.4% annual gain — from 2.5% in January after the 2.1% lows of August and September. Briefing.com’s outlook for core inflation remains tame given the weaker economic growth expected over the coming quarters. Service prices remain at the center of the core inflation. Medical services and education prices are up 6% from a year ago as owner equivalent rent (30% of the core) has fallen off to 2.8% year-over-year from 4.3% as we moved into 2007. Core commodities prices are nearly flat from a year ago as few of the producer pipeline pressures are being carried over to the consumer. Surprises in the core component typically provide the market reaction given the expected effect on Fed policy and interest rates. The Fed, however, is now directing policy with more weight on economic than inflation concerns. Still, the market remains nervous that the Fed’s recent rate cuts are helping to stoke inflation pressures. Core CPI data, then, that comes in higher than expected will feed those concerns and serve as a potential source of upset for the stock market if the thinking is that inflation pressures reduce the probability of further Fed easing.
08:10 RTP Rio Tinto PLC: Lehman increasing earnings ests by 11% for 2008, 2009, 2010 (446.20 )
Lehman is increasing their RTP earnings ests by an avg of 11% for 2008, 2009 and 2010 as they are significantly increasing their thermal coal, coking coal, and aluminium price forecasts.
08:10 OCLS Oculus Innovative Sciences announces Phase II data for Microcyn Technology in mildly infected diabetic foot ulcers met primary endpoint of clinical cure (4.88 )
Co announces additional positive results from its U.S. Phase II clinical trial evaluating Microcyn Technology as a topical antimicrobial treatment for mildly infected diabetic foot ulcers. In the clinically evaluable population of the study (those that complied with the protocol requirements for the duration of the study), the clinical success rate at visit 3 for Microcyn-alone-treated patients was 77.8% compared to 61.1% for the levofloxacin plus saline treated patients. Interestingly, the clinical success rate at visit 4 for Microcyn-alone-treated patients increased to 93.3% compared to 56.3% for the levofloxacin plus saline-treated patients. This study was not statistically powered but the high clinical success rate (93.3%) and the p-value would suggest the difference is meaningfully positive for the Microcyn-treated patients. Co states, “This additional data reaffirms our belief that Microcyn has the potential to be a benefit to patients with infected diabetic foot ulcers. Microcyn demonstrated a positive clinical success rate, meeting the primary endpoint of clinical cure or improvement of infection…”
08:09 TM Toyota Motor to slash production of big pickup gtrucks and SUVs at plants in Texas and Indiana - WSJ (105.00 )
WSJ reports the co said it would slash production of big pickup trucks and sport-utility vehicles by undisclosed amounts at plants in San Antonio and Princeton, Ind., underscoring the impact of high gasoline prices and consumers’ shift toward more fuel-efficient cars.
08:09 HTLF Heartland Finl initiated with a Hold at Stifel (19.80 )
Stifel initiates HTLF with a Hold saying they believe the new branches in faster growth western markets are likely to lead to better than peer group loan growth over the next few years; however, near-term economic weakness is likely to lead to loan growth below recent trends.
08:08 CCL Carnival: Lehman lowering 08 and 09 ests on concerns that business might not be trending as planned; tgt to $49 (39.23 ) -Update-
Lehman is lowering our 08 and 09 estimates for CCL based on their concern that the business might not be trending as planned in 2008, particularly in Europe. While firm is lowering their 08 and 09 ests, firm believes there is limited downside to the shares as the market already reflects the lower expectations. Firm’s new PT of $49 (down from $54) reflects 25% potential upside from current levels. Firm’s new 08E EPS is $2.88, down from $3.10, and compared to guidance of $3.10-$3.30. Firm’s new 09E EPS goes to $3.29, from $3.42.
08:07 WIRES On The Wires
Microsoft (MSFT) announcesplans to acquire Rapt, a provider of advertising yield management solutions for digital media publishers… Lifetime Brands (LCUT) announces it has entered into a Letter of Intent to form a strategic alliance with the Accent-Fairchild Group to expand the sales of Lifetime’s products and brands in Canada… Max Capital Group (MXGL) announces that it has agreed to acquire a U.S.-based admitted insurance co licensed to write business in all fifty states plus the District of Columbia. Financial terms of the transaction were not disclosed.
08:05 CCL Carnival estimates cut at Lehman (39.23 )
Lehman cuts their 2008-09 EPS ests and their tgt to $49 from $54 on CCL ahead of Q1 results on 3/20, based on their concern that the business might not be trending as planned in 2008, particularly in Europe. While firm cuts their 2008-09 ests, they believe there is limited downside to the shares, as the mkt already reflects the lower expectations.
08:05 ATN Atlas Energy Resources initiated with a Buy at Stifel- tgt $43 (32.64 )
Stifel initiates ATN with a Buy and a $43 tgt saying Atlas Energy offers a unique business model with attractive, low decline upstream assets being combined with an industry leading Partnership Management business. Importantly, the firm says the partnership has amassed a 224,000 net acre position over the emerging core of the Marcellus Shale play in southwestern Pennsylvania. They believe these factors combine to support a premium valuation for the units and justify the 7.0% yield versus the group average of ~9.6%.
08:05 MRB Metallica Resources reports Q4 EPS of ($0.03) ; revs of $13.2 mln - no ests (5.58 )
Gold and silver sales in the current year were generated by the Cerro San Pedro mine and totaled $17.8 mln and $5.0 mln, respectively. The co sold a total of 24,278 ounces of gold and 371,333 ounces of silver from May through December 31, 2007 at an average realized price per ounce of $734.89 and $13.52, respectively. There were no metal sales during 2006.
08:04 NVAX Novavax misses by $0.01, misses on revs (2.76 )
Reports Q4 (Dec) loss of $0.15 per share, $0.01 worse than the First Call consensus of ($0.14); revenues fell 14.9% year/year to $0.4 mln vs the $0.7 mln consensus.
08:03 ZANE Zanett issues Q1 rev guidance for its commercial solutions division in a range that is 10-13% above the same period in 2007 (0.44 )
Co issues Q1 revenue guidance for its commercial solutions division in a range that is 10-13% above the same period in 2007. Dennis Harkins, CFO, said, “We have been looking forward to a strong 2008 since the 4th quarter, which followed a record 2007 for Zanett. We will continue to strengthen our balance sheet as we look toward increasing organic growth and toward a number of potential acquisition targets. We continue to sign projects and clients in healthy numbers, for a total of $13.3 ml in new contracts so far in 2008.”
08:03 S&P futures vs fair value: -9.3. Nasdaq futures vs fair value: -13.8.
Futures point to a lower start as market participants await the February CPI report that is set for release at 8:30 ET. In corporate news, National City (NCC) had its credit rating downgraded at Moody’s due to the bank’s second-lien home equity and real estate exposure. Boeing (BA) is set to mover higher after being upgraded to Overweight from Equal-weight at Morgan Stanley. Meanwhile, fellow Dow component Exxon Mobil (XOM) was upgraded to Outperform from Neutral at Credit Suisse.
08:03 MENT Mentor Graphics: Citigroup says 1H08 is a trough so clients should take full-positions before orders begin to accelerate (9.11 )
Citigroup says Investors can optimize returns by buying MENT during its 3-yr trough and selling during its 3-yr peak. 1H08 is a trough so clients should take full-positions before orders begin to accelerate in 2H08 into peak-yr ‘09. MENT remains firm’s top-pick because: a) MENT stock, est changes, and valuation discount 1H’s trough, c) orders should accelerate in 2H08 and peak in ‘09, and d) the stock should rebound strongly into ‘09 and could mimic historical peak-yrs that generated 74% (06) to 108% (00) returns.
08:03 AIG American Intl: Citigroup views results as affirmation of AIG’s robust and diverse earnings power; tgt cut to $47 (42.48 )
Citigroup says ironically, they view results as affirmation of AIG’s robust and diverse earnings power. Considering AIGFP’s $11 bln pre-tax charges, $4 bln in realized losses and $8 bln in unrealized losses from investments, P&C’s $1 bln unfavorable P&C development and $348 mln in UGC losses, this seems like a modest loss. Firm does not foresee near-term improvements to the CDS portfolio or realized/unrealized investment losses - the two primary drivers for AIG’s results and valuation in coming months. Moreover, we see hurdles in P&C operations continuing to mount. We do not view favorable results in life operations, ILFC and asset management as enough of an offsetting factor. Firm does not believe AIG will need to raise additional capital. Firm cuts their tgt to $47 from $69.50.
08:02 HYTM Hythiam: Pilot program involving Prometa Treatment Program and standard of care demonstrates improved outcomes in methamphetamine dependent, Medicaid eligible participants in Arizona (2.75 )
Community Bridges announces the completion of a pilot program to assess the medical component of HYTM’s Prometa Treatment Program as a comparison to their standard ASAM medical detoxification protocol for Medicaid-eligible adults seeking treatment for Methamphetamine abuse. 100 total participants were included in the pilot program (50 in the P.T.P group and 50 in a control group). Patients were evaluated for program participation eligibility by Community Bridges treatment staff and given a medical assessment. The group receiving the P.T.P demonstrated a higher rate of retention in detox over those receiving the ASAM standard of care treatment, and a reduction in cravings over the 16 week Intensive Outpatient Therapy period.
08:02 WAVE Nextwave Wireless reports FY07 revs +143% yr/yr to $59.1 mln; EPS ($3.81) vs ($1.28 in yr ago period (5.25 )
08:02 HH Hooper Holmes reports Q4 EPS of $0.10 vs ($0.62) in yr ago period; reports revs of $58.3 mln vs $61.3 mln in yr ago period (0.67 )
08:01 NMX NYMEX reports Feb 2008 volume averaged record 1.846 mln contracts per day, electronic volume increases 30% and trading volume increases 99% (97.00 )
Co announces average daily volume for February 2008 of 1.846 mln contracts, a 20% increase from 1.542 mln contracts per day in February 2007. NYMEX electronic volume on the CME Globex electronic trading platform was 783,212 contracts per day and represented a 30% increase over 600,953 contracts per day in February 2007 electronic volume. NYMEX floor-traded energy futures and options averaged 240,842 contracts per day for February 2008. COMEX electronic volume on CME Globex averaged 179,934 contracts per day and represented a 99% increase over 90,500 contracts per day in February 2007 electronic volume. COMEX floor-traded average daily volume was 42,147 contracts for February 2008. Average daily volume on NYMEX ClearPort was 506,841 contracts for February 2008, compared to 385,711 for February 2007, representing a 31% increase.
08:01 SUP Superior Ind beats by $0.07, misses on revs (19.10 )
Reports Q4 (Dec) earnings of $0.22 per share, $0.07 better than the First Call consensus of $0.15; revenues rose 8.0% year/year to $229.2 mln vs the $238.3 mln consensus. Co to restate 2003-2006 financials, see 6:17 comment.
08:01 NVAX prelim ($0.15) vs ($0.14) First Call consensus; revs $.40 mln vs $0.69 mln First Call consensus
08:01 NX Quanex announces state court denied plaintiff’s request for temporary injunction on its merger with Gerdau S.A. (51.34 )
Co announces that the Harris County State District Court denied Momentum Partners’ request for a temporary injunction of the co’s previously announced pending merger with a subsidiary of Gerdau S.A.
08:01 CBF CBRE Realty Finance weighs strategic moves after loss - WSJ (3.86 )
WSJ reports the co said it is considering strategic “initiatives” after posting a fourth-quarter loss partly due to bad loans tied to developer Harry Macklowe. The co, which has lost more than 70% of its mkt value since its IPO in October 2006, said it had hired Goldman Sachs on yesterday’s morning conference call to help explore “a wide range of strategic and operational initiatives.” CBRE Realty declined to elaborate but in similar situations options have included possible sales of businesses or equity infusions.
08:00 SUP prelim $0.22 vs $0.15 First Call consensus; revs $229.2 mln vs $238.34 mln First Call consensus
07:58 AMGN Amgen: Color on ODAC panel vote (47.18 ) -Update-
Friedman Billings says the ODAC panel voted to keep Aranesp on the market but favored putting in some severe restrictions, which force firm to lower their already below-consensus Aranesp estimates even further. Doctors tell firm that 40% of their patients fall under the to-be-restricted populations of adjuvant, breast cancer, or head and neck. Firm’s new 2009 U.S. Aranesp estimate is now 29% lower than 4Q’s run-rate. Firm is cutting their U.S. Aranesp sales ests for 2008 and beyond; for 2008, they are at $1.48 bln (down from $1.79 bln); the Street is at $1.54 bln; their EPS est goes to $4.12 (from $4.21)… Citigroup says the outcome of the ODAC meeting represents a partial win for AMGN. They were concerned that the outcome could be worse. But the ~25% potential volume hit is in-line with the place holder in their model. They caution that with CMS’ NCD not fully implemented until April 7 and little private payers’ adoption to date, they do not believe that the ESA franchise has bottomed yet.
07:57 FMCN Focus Media: Expecting strong 4Q results and outlook - Citigroup (45.81 )
Citigroup notes that FMCN is a monopolist/near monopolist in its core Digital OOH and burgeoning Wireless Adv businesses. They note that in Internet, FMCN is set to perhaps become the largest co in China in terms of online adv revs in 2008, yet the co trades at a significant and unjustified discount. Firm is expecting strong 4Q results and outlook.
07:52 CFC Countrywide seeks to block abuse inquiry - WSJ (4.77 )
WSJ reports the co has sought to block a Justice Department probe into its treatment of bankrupt homeowners, saying the agency is exceeding its authority in a way that has “really staggering” implications for other big lenders. “The ramification of the U.S. Trustee’s interpretation of its power is really staggering, and it doesn’t relate simply to Countrywide,” Countrywide lawyer Richard Connop said at a recent hearing in the U.S. Bankruptcy Court in Pittsburgh. A transcript of the hearing was put into the court record this week.
07:51 MPW Medical Properties Trust announces public offering of 11 mln shares of common stock; under the co’s existing shelf registration (12.08 )
07:49 PCOP Pharmacopeia: Positive update with mgmt as key milestone nears - Broadpoint Capital (3.46 )
Broadpoint Capital says with the last patient recently enrolled in the four-week Phase IIa study, firm expects top-line results in May, perhaps in time for the American Society for Hypertension meeting. The primary endpoint-superior blood pressure reduction vs. placebo (statistical significance with a 7.5mmHg decrease)-represents a very low hurdle, so the real question will be whether DARA appears superior to the historical, 7-10mmHg decrease in systolic B.P. seen with angiotensin-receptor blockers. If so, the proposed dual mechanism will become much more credible. Firm believes positive Phase IIa data would 1) spread awareness that Pharmacopeia has changed dramatically from its original, fee-for-service business model; 2) raise the possibility DARA could be a unique, major product; and 3) increase the probabilities of a partnership on favorable terms.
07:45 ALO Alpharma initiated with a Buy at Roth Capital- tgt $35 (27.05 )
Roth Capital initiates ALO with a Buy and a $35 tgt saying Flector is an NSAID patch that could potentially avoid the side effects (ulcers) that occur with heavy systemic exposure to oral versions. The firm says the launch is already annualizing ahead of the co’s 2008 revenue forecast, and feedback from pain-treating physicians indicates that this strong start is likely to continue for Flector. The firm believes that the combination of a strong base business and growing new products could drive significant EPS growth that is above expectations.
07:45 ZUMZ Zumiez: Color on quarter (14.10 )
Robert Baird says ZUMZ reported better-than-expected Q4 results, largely due to lower-than-expected SG&A expense from lower bonus accruals. The co also provided FY08 guidance that is essentially in line with consensus, and raised their est by $0.01; however, the guidance is back-half loaded, as the co assumes better comps later in the year. Firm believes this is an appropriate assumption, due to easier comparisons and certain merchandise considerations… Thomas Weisel says gross margin was down 100bp y/y to 38.4% y/y due to occupancy deleverage but 186bp ahead of firm’s model due to better than expected product margin. Margin protection despite unanticipated comp weakness was helped by vendor support, highlighting the benefit of a third party branded merchandising strategy in a challenging consumer spending environment. SG&A as a percentage of sales was down 20bp y/y to 23.1% due to lower levels of bonus accruals. As a result, operating margin of 15.3% was down 80bp y/y. Firm says new stores are a headwind for margins but expansion remains economically rational. Firm cuts their tgt to $16 from $19.
07:44 SCANX Early pre-market gappers
Gapping up: SCA +34.8%, ZUMZ +17.4%, COGO +8.7%, SHPGY +6.1%, LSCC +6.0%, RSO +5.8%, BA +1.9%, ZIPR +1.9%, YHOO +1.8%, BHP +1.2%, ADS +1.0%… Gapping down: IFON -23.9%, PANL -8.9%, HIBB -8.0%, JMBA -7.6%, CEDC -4.8%, NCC -3.3%, WAVX -3.3%, NITE -2.9%, CCL -2.2%, AU -1.9%, DB -1.7%, NOK -1.6%, TOT -1.6%, SAP -1.5%, TS -1.4%.
07:43 EQT Equitable Res tgt upped to $75 from $57 at Citigroup, citing high resource potential (63.74 )
07:39 BWY BWAY Holding: VA SmallCap Partners discloses 7.0% stake in amended 13D filing; up from 5.9% previously on 11/14 (10.07 )
07:39 HIT Hitachi guides lowers guidance to net loss of 70 bln Yen from profit of 10 bln Yen for FY08 (71.05 )
Co said that “due to a re-assessment of the realizability of deferred tax assets in line with the projected lower earnings in the Digital Media & Consumer Products Segment, Hitachi plans to record a one-off write-down of deferred tax assets related to local taxes of approximately 62.0 billion yen. As a result, Hitachi has revised its previous forecasts and is now projecting income before income taxes and minority interests of 300.0 billion yen, income before minority interests of 34.0 billion yen and a net loss of 70.0 billion yen.” Prior guidance called for a profit of 10 bln Yen.
07:37 PSUN Pacific Sunwear: Color on quarter (11.67 )
Wachovia says last night PSUN walked down Q1 consensus of ($0.02) to ($0.06)-($0.08), principally due to higher SG&A spending, excluding all one-time charges related to the d.e.m.o business closure. Q1 assumes a 3%-4% comp increase. Importantly, mgmt also provided full year guidance for EPS in the range of $0.73 to $0.77, also assuming a 3% to 4% comp increase. Full year guidance is in line with firm’s est and consensus. Firm believes PSUN is gaining traction with improvements in presentation efforts, based on their channel checks. Further, the PSUN fleet is getting some decent reads, from firm’s field team. However, they still believe there is room for improvement in merchandising and systems upgrades… Robert Baird says PSUN is attempting to turn around its PacSun business. Co hopes to achieve this by refining the merchandise mix and upgrading the appearance of its stores. So far, PSUN seems to be heading in the right direction with its turnaround, and this has been reflected in its apparel comps. At the same time, PSUN has finally decided to get rid of its demo and One Thousand Steps concepts. This leaves the co without any tangible square footage growth potential, as PacSun is a mature concept. But that isn’t to say that the co is without growth potential, as it is mgmt’s goal to drive productivity from $350 to nearly $500, and also improve operating margin from 6% to low double-digits… Citigroup says PSUN mgmt highlighted initiatives to drive growth and profitability in 2008, which include: 1) drive apparel sales to 80% of total business from ~71% on avg. in 2007 through growth of juniors, 2) drive store productivity, 3) strengthen internal talent and 4) continue to invest capital in store refreshes and technology. Firm believes PSUN division is on right track with improving apparel, strong inventory control, and improving merch. margin driving accelerating earnings growth on substantial margin recovery over the next 2 years
07:35 MAM Maine & Maritimes reports Q4 EPS of $0.73 vs $0.72 single estimate; reports revs of $10.6 mln vs $10.2 mln single estimate (28.50 )
07:34 ANN AnnTaylor misses by $0.01, reports revs in-line; guides Q1 & FY09 EPS below consensus; discontinues monthly same store sales reporting (23.90 )
Reports Q4 (Jan) earnings of $0.19 per share, $0.01 worse than the First Call consensus of $0.20; revenues fell 1.6% year/year to $600.8 mln vs the $600.5 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.35-0.40, excluding non-recurring items, vs. $0.41 consensus. Co issues downside guidance for FY09 (ending Jan 2009), sees EPS of $1.80-1.90, excluding non-recurring items, vs. $1.95 consensus. The Company indicated that, given the current environment and potential volatility in performance based on factors outside of its control, it has decided to provide earnings guidance for the next few quarters on a quarter- by-quarter basis. At the same time, the Company noted that, effective immediately, it will discontinue reporting sales on a monthly basis, but will continue to report sales and earnings on a quarterly basis.
07:34 SYX Systemax discloses in 10-k that it received subpoena on Jan 2 for documents relating to the payment and processing of rebates (11.51 )
From 10-k, “On January 2, 2008 the Company received a subpoena for documents from the Florida Attorney General’s Office relating to the payment and processing of rebates by the Company. On January 30, 2008 the Company received a second subpoena for additional documents. The Company is cooperating with the Florida Attorney General’s Office to provide the requested documents.”
07:34 PWER Power-One: Bel Fuse sends letter to Power-One; Bel CEO says “In short, the strategic fit between Bel and Power-One is ideal” (2.44 )
In a letter to PWER mgmt, Bel Fuse (BELFA BELFB) CEO states “There are significant opportunities for the realization of synergies resulting from the combination of our businesses. Combining our operations on a global basis would result in the broadest range of products in the industry. In short, the strategic fit between Bel and Power-One is ideal. It is our strong belief that such a transaction would enable our two organizations to best serve our respective customers, shareholders and employees. Over the past couple of weeks, I have tried to contact you both to discuss this opportunity and other ideas. Hopefully after reviewing this letter, you will see that there is a benefit to a meeting.”
07:34 RSO Resource Capital reports Q4 EPS if $0.14 vs $0.36 in yr ago period; reports net interest income of $14.1 mln vs $10.0 mln in yr ago period (7.03 ) -Update-
07:33 FRM Furmanite reports Q4 EPS of $0.09 vs $0.10 single analyst est; revs rose 9% YoY to $72.9 mln vs $73.70 mln two analyst est (10.40 ) -Update-
“We saw revenues increase in every region for the quarter and for the year… We’re excited by the progress we made in 2007 and our opportunities for growth in 2008.”
07:32 NITE Knight Trading releases Feb 2008 volume statistics; average daily dollar value traded in Feb 2008 was $15.39 bln (17.20 )
Co says it had average daily dollar value traded in Feb 2008 was $15.39 bln, down approximately 16.1% from $18.34 bln in January 2008 and up approximately 56.8% from $9.82 bln in Feb 2007. Average daily U.S. equity trade volume in Feb 2008 was 1.59 mln, down approximately 14.1% from 1.85 mln in January 2008, and up approximately 35.6% from 1.17 mln in Feb 2007. Average daily U.S. equity share volume was 3.5 bln in Feb 2008, up approximately 16.4% from 3.01 bln in January 2008, and down approximately 16.6% from 4.2 bln in Feb 2007.
07:32 FRM Furmanite reports Q4 EPS of $0.09 vs $0.10 single estimate; reports revs up 9% yr/yr to $72.9 mln vs $73.7 mln two analyst estimate (10.40 )
07:31 ANN sees Q1 $0.35-0.40 vs $0.41 First Call consensus
07:31 UAPH UAP Holding: Agrium extends tender offer for UAP and withdraws Hart-Scott-Rodino pre-merger notification (38.54 )
Agrium (AGU) announces that it extended its previously announced tender offer for all of the common stock of UAPH until 12:00 midnight, New York City time, on Wednesday, April 30, 2008. The tender offer was previously set to expire today at midnight, New York City time. AGU extended the offer because all of the conditions to completion of the offer have not yet been satisfied. In particular, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has not yet expired or been terminated. In addition, Agrium announced that it intends to voluntarily withdraw its notification and report form from the FTC later today. As a result of informal discussions between Agrium and the staff of the FTC since the original filing of its notification and report form, Agrium believes that Staff’s concerns are limited to approximately a dozen UAPH stores. Agrium plans to work with Staff in an attempt to further reduce or eliminate the stores of concern.
07:31 ANN sees FY09 $1.80-1.90 vs $1.95 First Call consensus
07:31 ANN prelim $0.19, ex items vs $0.20 First Call consensus; revs $600.8 mln vs $600.49 mln First Call consensus
07:30 INWK InnerWorkings initiated with an Outperform at Cowen (12.51 )
07:30 ACL Alcon profiled in New America section of IBD (136.50 )
IBD reports the co sells vision care products all over the world… ACL was partially spun off from longtime owner Nestle in 2002; Nestle still owns about 75% of Alcon’s shares. Lately, investors have been rattled by fears Nestle would flood the mkt with Alcon shares in a secondary offering and thus create a supply-demand imbalance, analysts say. “The stock is going up because the fundamentals are fantastic. It’s going down because of fear Nestle will dump shares on the market,” said Peter Bye of Jefferies. Though it doesn’t bear on the financial health of the co, uncertainty over a supply-demand imbalance from a secondary offering — at least in the short run — has created an overhang on the stock, Bye says… If you take away the iffy Nestle ownership question, Alcon’s picture looks pretty sunny, especially compared with the cloudy outlook of many other cos operating in today’s weak economy… Analysts polled by Thomson Financial see ACL’s earnings growing 17% this year vs last year. “Only about 3% of Alcon’s sales are exposed to consumer discretionary spending, so Alcon appears insulated from further downturns in consumer confidence,” Wachovia analyst Larry Biegelsen wrote in a March 4 report… In surgery products, Alcon is the dominant player in the $2.5 bln cataract surgery mkt. It’s a mkt that will surely get bigger as a growing portion of the population ages into their senior years, when cataracts start to cloud vision. Alcon’s cataract franchise is seeing strong growth in emerging mkts, too, where cataract surgeries — lagging the developed world — are becoming more popular.
07:27 NEXC NexCen misses by $0.04; reaffirms FY08 guidance (3.50 )
Co reports Q4 EPS of $0.01, ex items vs $0.04 First Call consensus; revs $10.3 mln vs $12.10 mln First Call consensus. Co reaffirms FY08 EPS guidance of $0.27-0.30, ex items vs $0.20 single estimate.
07:25 Gross, SEC fail to break auction-rate bond paralysis - Bloomberg
Bloomberg reports that billionaires Bill Gross and Wilbur Ross and the SEC failed to restore confidence in the $330 bln auction-rate bond market, as borrowing costs for states and municipalities rose. Auctions for borrowers from San Francisco to Houston were unsuccessful even after Gross, who runs the world’s biggest bond fund, and Ross, who invests in distressed companies, said they were buying municipal debt to take advantage of rising yields. Thirty-year tax-exempt yields rose 6 basis points to 4.89 percent after falling 18 basis points last week from a three-year high of 5.01 percent, Municipal Market Advisors data show. More than 67% of auctions failed this week, based on data compiled by Bloomberg. The market became unhinged last month, after dealers who supported the securities for more than two decades stopped bidding for bonds investors didn’t want. Auction rates jumped to 6.73 percent this month from an average 3.94 percent in the previous year, the Securities Industry and Financial Markets Association said.
07:24 AMGN Amgen: ODAC votes for restricted Aranesp label in cancer; lowering est - Rodman & Renshaw (47.18 )
Rodman & Renshaw notes the ODAC panel voted for the inclusion of specific language in the label restricting use in curable cancers, metastatic head and neck cancer and metastatic breast cancer. These restrictions come as something of a surprise to firm, as they had handicapped the probability of Aranesp’s loss of its indication in breast cancer at 30%. According to AMGN, US Aranesp sales in metastatic and adjuvant breast cancer are approx 20% of the total sales in CIA, whereas there is little use of the drug in head and neck cancer. According to firm’s ests, without the US breast cancer market, the Aranesp NPV is reduced by approximately $2 bln, while the NPV per share is lowered by approx $2 from its current level.
07:23 JMBA Jamba: Soft finish to 2007; new menu board and product introductions are positives for 2008 - Merriman (2.49 )
Merriman says JMBA previously reported 4Q rev of $54.6 mln compared $49.7 mln in the same period a year ago. These results were driven by a system-wide comp decline of 2.9%, including a co-owned decline of 3.3% and a franchise decline of 1.8%. The co’s new initiatives include new menu boards, a new breakfast product lineup nationwide rollout, hot sandwich pocket trials in selected markets and its Jamba/Nestle RTD partnership. For FY08, firm’s rev est is lowered to $375 mln from $382 mln and their EBITDA est remains at $7.7 mln. For FY09, firm’s rev est is reduced to $441 mln from $449 mln and their EBITDA est goes to $19.1 mln from $19.4 mln.
07:23 TXRH Texas Roadhouse initiated with a Hold at Jefferies- tgt $11 (9.72 )
Jefferies initiates TXRH with a Hold and a $11 saying while they find Texas Roadhouse’s discount valuation hard to ignore, they see no near-term, company-specific catalyst on the horizon and expect the company’s unit-level economics, new unit productivity, and ROIC trends to further soften in 2008.
07:22 FRE Freddie Mac tgt cut to $17 at FBR on higher loss provision (21.30 )
Friedman Billings cuts their tgt on FRE to $17 from $20 as they now expect loss provision in 2008 to rise beyond current guidance, which will affect book value further. Firm reduces their FY08 EPS est to a loss of $5.00 from their prior est of a loss of $4.40 to reflect their higher est for loss provision, given the continued deterioration in house prices. Firm believes losses will continue to rise, putting further pressure on capital, and another capital raise in the second half of 2008 may be unavoidable for FRE, given the deteriorating housing market conditions.
07:22 EME EMCOR Group: Friedman Billings raises 2008 ests following strong Q4 and solid backlog growth (23.59 )
Friedman Billings raises their 2008 ests on EME for strong Q4 results and solid backlog growth. Backlog, albeit flat sequentially, was up 28% YoY and provides a fair degree of visibility through 2008. As a late-cycle non-residential construction services co, EME has continued to benefit from favorable construction spending over the past 12 to 18 months. Firm’s 2008 EPS ests go to $2.20 (from $2.13) and introduce their 2009 EPS est of $2.50 (+13.4% YoY growth).
07:19 Carlyle may help CCC investors, according to report - Reuters
Reuters reports private equity group Carlyle will look at ways to help investors who have lost money in Dutch-listed Carlyle Capital, Carlyle co-founder David Rubenstein was quoted on Friday as saying. In an interview with France’s Les Echos newspaper, Rubenstein said Carlyle had done all it could to help CCC, citing a $150 million credit line provided by its partners “no doubt at a loss” but wanted to try and make amends. “We are looking at all ways to help CCC investors who have lost their capital outlay. For the most part, these are large commercial banks,” Rubenstein was quoted as saying.
07:19 AEA Advance America Cash downgraded to Equal Weight at boutique firm (7.13 )
07:18 BVF Biovail: Broadpoint Capital maintains cautious stance given lack of visible pipeline progress; cuts 2008 EPS est (13.38 )
Broadpoint Capital says yesterday BVF announced Q4 and full-year financial results, ahead of firm’s expectations. Firm believes BVF continues to struggle with the advancement of its pipeline and key sources of revenue appear to be slowing. Firm says the dividend continues to support the share price but, given its current yield of approx 11%, investors appear to be unconvinced that future payments are sustainable. Firm does not believe that mgmt will suspend these payments unless a strategic acquisition is contemplated. Firm reducing firm’s 2008 earnings per share est to reflect the removal of BVF-033 from their forecasts. Firm’s EPS est is $1.20, down from $1.56 (consensus $1.43).
07:18 ITU Banco Itau: Hearing downgraded to Sell from Neutral at tier 1 firm (25.08 )
07:17 BBD Banco Brad SA: Hearing downgraded to Neutral from Buy at tier 1 firm (30.98 )
07:16 PRICE Filings, Offerings, Pricings and IPOs
Filings: AgFeed Industries (FEED) files an S-3 relating to a 2.964 mln share common stock offering by selling shareholders… Atlas Energy Resources (ATN) files for a mixed shelf offering… Rudolph Tech (RTEC) files for an S-3 relating to a 1.3 mln share common stock offering by selling shareholders.
07:15 TSP Telesp Part Adr: Hearing downgraded to Neutral from Buy at tier 1 firm (26.76 )
07:13 NETC Net Servicos de Comunicacao: Hearing upgraded to Buy from Neutral at tier 1 firm (10.42 )
07:13 SMBL Smart Balance reports Q4 EPS of ($1.41) may not compare to $0.12 two analyst estimate; reports revs up 26.3% yr/yr to $50.7 mln vs $52.6 mln two analyst estimate (6.65 )
In Y08, co sees continued growth in net sales on an operating basis in line with its long-term target of approximately 30% through both volume and pricing growth.
07:13 NNDS NDS Group: Hearing upgraded to Buy from Neutral at tier 1 firm (46.70 )
07:12 LPNT Lifepoint Hospitals: Hearing upgraded to Buy from Neutral at tier 1 firm (26.03 )
07:10 TICC Technology Investmt Cap downgraded to Market Perform at Friedman Billings- tgt $8 (8.65 )
Friedman Billings downgrades TICC to Market Perform from Outperform and cuts their tgt to $8 from $14 as they believe the lower-rate environment, in concert with a lack of debt capacity, will result in a lower dividend.
07:08 SHW Sherwin-Williams added to Focus List at J.P Morgan (52.08 )
07:08 ULTA Ulta Salon added to Alpha List at Piper Jaffray (10.49 )
07:04 SKIL SkillSoft reports Q4 (Jan) results, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY09 EPS in-line, revs above consensus (8.68 )
Reports Q4 (Jan) earnings of $0.31 per share, includes gains, charges, may not be comparable to the First Call consensus of $0.01; revenues rose 34.3% year/year to $77.5 mln vs the $75.5 mln consensus. Co issues guidance for Q1, sees EPS of $0.04-0.05 vs. $0.05 consensus; sees Q1 revs of $79-81 mln vs. $77.53 mln consensus. Co issues guidance for FY09, sees EPS of $0.32-0.35 vs. $0.33 consensus; sees FY09 revs of $328-336 mln vs. $321.95 mln consensus.
07:04 ITT ITT Corp profiled in Inside Wall Street - BusinessWeek Online (55.05 )
BusinessWeek Online reports the defense portion of ITT’s revenues could become bigger after their purchase in December of EDO, which makes engineering systems for military gear and vehicles.
07:04 XCR Xorporeal profiled in Inside Wall Street - BusinessWeek Online (3.85 )
BusinessWeek Online reports Xcorporeal, which has developed a battery-powered, wearable dialysis machine, is catching the eye of some investors. “The new, smaller version could be more effective than conventional types that require daily or thrice-weekly treatments in hospitals,” says Marc Cummins of Prime Capital, which has acquired 6.7%, or 1 mln shares. Xcorporeal also makes portable machines for home or hospital use. “The portables will have great impact on patients suffering from kidney failure,” says Cummins. He expects the stock to soar once the FDA approves the portables for home use, expected in late 2009. Jay Wolf of Trinad Capital, with a 2.5% stake, says the machines are safe, less costly, and more efficient.
07:03 IMAX Imax misses by $0.08, beats on revs (6.74 )
Reports Q4 (Dec) loss of $0.21 per share, excluding non-recurring items, $0.08 worse than the First Call consensus of ($0.13); revenues fell 11.4% year/year to $32.3 mln vs the $31.5 mln consensus.
07:03 CALLS Early Research Calls IV
Upgrades: Thomas Weisel upgrades InterMune (ITMN 13.07) to Overweight from Market Weight and maintains their $23 tgt, based on ITMN’s lead clinical candidate, pirfenidone, that is in Ph. III trials to address a multi-billion dollar, nascent market opportunity, and its protease inhibitor for the treatment of hepatitis C, ITMN-191, that is potent and strategically partnered with the market leader in HCV therapy (Roche)… RBC upgrades Helca Mining (HL 11.7 
to Outperform from Sector Perform. Miscellaneous: Citigroup removes Harley-Davidson (HOG 36.80) from Top Picks Live list… ThinkEquity initiates Intuitive Surgical (ISRG 284.9 with a Buy and a $360 tgt… Morgan Stanley initiates Aegon (AEG 14.22) with an Underweight… JMP initiates Optimer Pharma (OPTR 6.59) with an Outperform… JMP initiates ViroPharma (VPHM 8.94) with an Outperform…. Credit Suisse initiates Rayonier (RYN 40.85) with an Outperform… Credit Suisse initiates Plum Creek Timber (PCL 39.97) with a Neutral… Credit Suisse initiates Potlatch (PCH 40.89) with a Neutral… Credit Suisse initiates Anworth Mortgage (ANH 5.57) with a Neutral… RBC initiates DURECT (DRRX 4.85) with an Outperofrm… J.P Morgan initiates Southern Copper (PCU 111.56) with an Underweight… UBS initiates Sinclair Broadcast (SBGI 9.32) with a Neutral… Jefferies initiates Red Robin Gourmet Burgers (RRGB 33.49) with a Buy and a $40 tgt saying past miscues are still unjustly weighing on valuation. The firm sees relative fundamental strength in coming Q’s driving merit-based multiple expansion.
07:03 WIRES On The Wires
GOL Linhas Aereas Inteligentes (GOL) announces interline agreements between V.R.G and the United Arab Emirate’s Etihad Airways and Turkey’s Turkish Airlines… BPZ Resources (BZP) announces that OSINERGMIN, the government regulatory agency in Peru responsible for monitoring industrial safety, has cleared the co to resume operations at the CX-11 platform in the offshore Z-1 Block in northwest Peru… Isolagen (ILE) announces the completion of enrollment of approximately 120 patients in its Phase II/III Study IT-A-008 investigating the Isolagen Therapy for the treatment of moderate to severe acne scars.
07:02 SKIL sees Q1 $0.04-0.05 vs $0.05 First Call consensus; sees revs $79-81 mln vs $77.53 mln First Call consensus
07:02 SKIL sees FY09 $0.32-0.35 vs $0.33 First Call consensus; sees revs $328-336 mln vs $321.95 mln First Call consensus
07:01 IMAX prelim ($0.21), ex items vs ($0.13) First Call consensus; revs $32.30 mln vs $31.50 mln First Call consensus
07:01 SKIL prelim $0.33 may not compare $0.01 First Call consensus; revs $77.5 mln vs $75.50 mln First Call consensus
07:00 CYTO Cytogen reports Q3 EPS of ($0.15) vs ($0.20) single estimate; revs $5.13 mln vs $6.64 mln single estimate (0.57 )
07:00 STE Steris announces new $300 mln share repurchase authorization; names Michael Tokich as CFO (25.81 )
Co announced that its Board of Directors has authorized the purchase of up to $300 mln in shares of common stock (represents ~20% of outstanding shares). Co also announces that Michael Tokich has been promoted to senior vice president and chief financial officer. Tokich joined STERIS in 2000 and was most recently vice president and corporate controller.
07:00 FTWR FiberTower reports Q4 EPS of ($0.90) may not compare to ($0.20) consensus; reports revs up 14% yr/yr to $8.3 mln vs $8.4 mln consensus (1.61 )
06:53 CVO Cenveo reports Q4 EPS of $0.53, ex-items, vs $0.49 consensus; reports revs of $584.4 mln vs $597.5 mln two analyst estimate (13.65 )
06:52 CALLS Early Research Calls III -Update-
Upgrades: Credit Suisse upgrades Exxon Mobil (XOM 87.05) to Outperform from Neutral and raises their tgt to $102 from $100 based partly on the recent disconnect between the performance of commodity prices and the performance of the US Big Oil sector. Oil prices are well over $100/bbl, suggesting consensus earnings forecasts for the sector need to move up in the near term. Firm notes last week XOM disappointed some investors with an increase in capital expenditure, but they saw this as more of a mark-to-market and ExxonMobil is still the most efficient re-investor of capital in the business…. J.P Morgan upgrades Quicksilver Gas (KGS 5.04) to Overweight from Neutral. Downgrades: Friedman Billings downgrades UCBH Holdings (UCBH 8.71) to Market Perform from Outperform and cuts their tgt to $5 from $8 saying the departure of long-time auditor PWC could not have come at a worse time, considering the recent replacement of the CFO and a credit-quality-related adverse change to 4Q08 earnings in the 10-K. The firm also believes that the confidence investors once had in management has eroded materially and is unlikely to return in the nearterm… Thomas Weisel downgrades Cubist Pharma (CBST 19.0 to Market Weight from Overweight and lowers their tgt to $21 from $31, as they acknowledge the continued growth of the Cubicin franchise makes current valuation levels appear compelling, but don’t believe shares will outperform the sector in ‘08 given CBST remains a co built entirely around one product and, excluding label-expanding Cubicin trials, has no clinical development pipeline to deliver near-term catalysts while the drug’s expiring period of market exclusivity remains a concern as expectations surrounding the announcement of Paragraph IV filings and emerging competition are likely to provide a source of near-term headline risk.
06:51 TECUA Tecumseh Prods reports Q4 EPS from continuing ops of $0.18 vs ($1.36) in yr ago period; reports revs up 2% yr/yr to $256.1 mln (25.99 )
06:47 Dollar rebounds from record versus euro on intervention concern - Bloomberg.com
Bloomberg.com reports the dollar rose from a record low against the euro and traded above 100 yen as securities firms speculated central banks will intervene for the first time in 13 years to shore up the U.S. currency. Goldman Sachs and Morgan Stanley said concerted action by policy makers to stem the currency’s slide is increasingly likely. The gains limited the dollar’s losses in a week when it fell to the lowest in 12 years against the yen, approached parity with the Swiss franc and traded above $2 per U.K. pound. “While I don’t think we have reached the threshold yet, the argument in favor of it is gradually becoming compelling. We’re on an intervention watch.”
06:35 HK shares fall further as record oil whacks Sinopec; Sensex up 375pts
Japan’s benchmark Nikkei average closed at a more than 2.5 yr low on Friday as the dollar fell back below 100 yen, dragging exporters such as Toyota Motor. The dollar slid below 100 yen, falling to 99.84 yen, down 0.8% on the day and back near a 12-year low of 99.77 yen hit on Thursday. It later bounced back over 100 yen. The Nikkei fell 4.2% for the week and has lost 20% so far this year. Hong Kong stocks piled on more losses on Friday, adding to the last session’s sell-off, as investors remained on edge following more bad news about credit markets, while top Asian oil refiner Sinopec sank on record crude prices. The benchmark Hang Seng Index closed down 0.3%, or 64.5 points, at 22,237.11 for a weekly loss of 1.2%… The Sensex is now up 375 points at 15,732. The NSE Nifty is up 119 points at 4,742. (Reuters, Business Standard)
06:35 Miners push European shares higher, retailers weigh
European shares inched up in early trade on Friday as gains in mining stocks offset weaker retail shares, while markets eyed key U.S. inflation data later in the day for clues on interest rates. By 0922 GMT, the pan-European FTSEurofirst 300 index was up 0.4 percent at 1,272.75 points, dipping in and out of negative territory and looking for direction after closing 1.3 percent lower in the previous session. Around Europe, England’s FTSE is +0.4%, Germany’s DAX is +0.6%, and France’s CAC is +0.5%. (Reuters)
06:31 S&P futures vs fair value: -4.7. Nasdaq futures vs fair value: -8.0.
06:30 European Markets
FTSE…5727.50…+35.10…+0.6%. DAX…5638.87…+38.31…+0.6%.
06:30 Asian Markets
Nikkei…12241.60…-191.84…-1.5%. Hang Seng…22237.11…-64.53…-0.3%.
06:27 Video Games Sales Top $1 bln in Feb - Next-Gen.biz
Next-Gen.biz reports that accodring to NPD, total videogame sales for the month of February topped out at $1.33 billion in the US, driven by a 47 percent increase in software sales, which hit $668.7 million. Overall hardware sales were up 19 percent to $480 million for the month, while accessory sales were up 36 percent to $185.3 million. The top software title for the month was once again the Xbox 360 version of Call of Duty 4: Modern Warfare (ATVI), followed by the Xbox 360 version of Devil May Cry 4 and the Wii Play/Remote bundle. “With several marquee titles still to come in the front half of the year, the industry is poised to achieve another year of record-breaking sales despite difficult economic condition,” said NPD analyst Anita Frazier in an e-mail. Hampered by reported hardware shortages during the month of February, Microsoft (MSFT) sold 254,600 Xbox 360 hardware units, trailing the PlayStation 3 (SNE) for the second month in a row. Sony’s console sold 280,800 units during the month, while the Nintendo Wii sold a hefty 432,000 units. But the biggest hardware seller in unit sales during the month was the $130 Nintendo DS, which sold 587,600. Handheld rival PSP sold a solid 243,100, while the aging PS2 still managed to outsell younger, more powerful consoles with 351,800 in sales.
06:26 GHS GateHouse Media announces Q4 results and authorizes stock repurchase of up to $75.0 mln of common shares (5.86 )
Reports Q1 (Dec) earnings of $0.22 per share, excluding goodwill impairment, may not be comparable to the First Call consensus of $0.04; revenues rose 76.0% year/year to $172.2 mln vs the $172.1 mln consensus. Briefing.com note: Goodwill impairment charge was added to operating loss of $213.68 mln, resulting in operating income of $12.3 mln. Diluted shares outstanding is 56.82 mln.
06:18 CALLS Early Research Calls II -Update-
Downgrades: SunTrust downgrades Goodrich Petroleum (GDP 27.86) to Neutral from Buy and lowers their tgt to $24 from $26, based on valuation, a 2% lower production outlook and higher operating expense following Q407 EPS that missed firm and consensus estimates… Citigroup downgrades Teva (TEVA 46.32) to Hold from Buy and lowers their tgt to $50 from $51, as they continue to favor the co’s long-term growth potential, but see limited near-term upside as demonstrated by the muted share price reaction to their bold 5-year goal to surpass $20 bln in revenues and believe in the absence of a major patent challenge win or settlement, investor concern about Teva’s ability to exceed 2009 EPS of $3.00/share may increase as 2008 unfolds… Citigroup downgrades National Atlantic Holdings (NAHC 5.99) to Hold from Buy and lowers their tgt to $6.25 from $8, following their announcement they have entered into a merger agreement to be acquired by a subsidiary of Palisades Safety and Insurance. Miscellaneous: Broadpoint initiates Salesforce.com (CRM 58.91) with a Buy and sets a $70 tgt, based on strong Q4 results and believe CRM is heading into FY09 with a healthy pipeline and increased visibility.
06:17 SUP Superior Ind identifies material weakness; to restate 2003-2006 financials due to tax errors (19.10 )
In light of the income tax errors, which resulted primarily from differences between the book basis and the tax basis of fixed assets not being reconciled to the underlying subsidiary ledger amounts, management has concluded that a material weakness exists in the Company’s internal controls over financial reporting as it relates to the accounting for deferred taxes. The Company has not yet completed its assessment of the effectiveness of its internal control over financial reporting at December 30, 2007, so there is no assurance that other material weaknesses will not be identified as part of completing that process.
06:15 CALLS Early Research Calls I
Upgrades: Baird upgrades Omniture (OMTR 21.34) to Outperform from Neutral and maintains their $30 tgt, based on valuation and beleive a modest slowing in marketing spend is reflected in shares while long-term growth prospects remain above average… UBS upgrades Orient-Express Hotels (OEH 47.79) to Buy from Neutral… Citigroup upgrades Mylan (MYL 10.69) to Buy from Hold and raises their tgt to $16 from $15.50, based on valuation and view the current share price as justifiable even if Mylan’s results were to fall short of consensus expectations… Citigroup upgrades Eastman Kodak (EK 16.92) to Hold from Sell and lowers their tgt to $20 from $22, based upon their view that risk reward is approaching more attractive equilibrium between balance sheet strength and the embedded call optionality of potential success with new product initiatives and expansion of ingredient brand strategy (IP licensing)… Oppenheimer upgrades Global Industries (GLBL 17.35) to Outperform from Perform and sets a $24 tgt, based on robust bidding activity, record backlog, and its increased appetite for larger projects, all of which position the co for strong organic growth… Jefferies upgrades WuXi PharmaTech (WX 21.16) to Buy from Hold and maintains their $30 tgt, following Q407 EPS and net revenues that exceeded firm estimates while noting that gross margins held up… Morgan Stanley upgrades Boeing (BA 74.1 to Overweight from Equal-weight.
06:04 EXEL Option to develop Exelixis compound exercised by Genentech (5.49 )
Co announces that Genentech (DNA) has exercised its option to further develop and commercialize Exelixis’ compound XL518, a selective and potent inhibitor of MEK, which is currently in a phase 1 clinical trial. Under the terms of the collaboration agreement between the parties, Exelixis will continue to be responsible for the phase 1 clinical trial until the point that a maximum tolerated dose is determined. After MTD is achieved, Genentech will be responsible for completing the phase 1 clinical trial and subsequent clinical development. Selection of the compound and opt-in by Genentech trigger a payment of $3.0 mln. Another $7.0 mln is due when a phase 2 program is initiated by Genentech.
05:39 TGT Target, JP Morgan in talks on credit-card deal - WSJ (50.56 )
The Wall Street Journal reports Target is in discussions with JP Morgan (JPM) about taking a half-interest in TGT’s credit-card operations, according to people familiar with the matter. TGT yesterday said it was discussing the sale of a half-interest in its credit-card receivables for about $4 bln with a co it would not name. It said the discussions also include a long-term relationship around its cards business. JPM is also expected to be a leading bidder in a coming auction of General Electric’s (GE) private-label card portfolio, which includes retail brands Wal-Mart Stores (WMT), Gap (GPS) and Brooks Brothers. Analysts estimated the sale of a 50% stake in the business could reduce Target’s exposure to consumer debt at a time when the economy appears to be contracting. Using proceeds to fund share repurchases could also increase per-share profits, they say.
05:35 SEC to widen range for asset valuations - WSJ
The Wall Street Journal reports the SEC is expected to tell public companies that while they still need to use market prices for many of the instruments they hold no matter how bad those prices look, they can also give investors a wider range of the possible values for those securities. The guidance is aimed at giving investors more information about prices that are difficult to gauge because many markets have seized up in recent months. Some observers worry, though, that companies could use the opportunity to soften the blow of big losses in markets where the value of even safe securities have been battered by mortgage defaults, hedge-fund implosions, worries about inflation and recession fears. Chairman of the House Financial Services Committee Barney Frank says there is an urgent need to look at mark-to-market accounting because it’s having a “downward pull” on the economy. Mr. Frank says he is in touch with regulators and will hold a hearing when Congress returns from break next month. The SEC move won’t change the actual accounting for instruments torched by the credit crunch. In many cases, companies will still have to use market prices and so record big hits to profit, on instruments that some executives believe won’t ultimately show long-term losses. But they will allow companies to give a range of alternatives in the text of their earnings reports. The SEC plans to tell companies, as soon as next week, that they can provide ranges for the values that surround those market prices. But the agency, whose plans could change, is expected to suggest that companies explain how they’ve come up with the values, especially in cases where there isn’t an active market for a security and, as a result, a model has to be used for pricing. The risk is that this could also allow companies to present overly rosy views of the losses they are facing. That could lull investors and analysts into a false sense of comfort, some fear, much in the same way overly optimistic assumptions about mortgage defaults spurred the current crisis.
05:32 Microsoft pitches merger vision to Yahoo at meeting - WSJ
The Wall Street Journal reports senior executives from Microsoft (MSFT) and Yahoo (YHOO) met Monday to discuss Microsoft’s takeover offer for Yahoo, according to people familiar with the matter. The meeting wasn’t a negotiation, and no bankers attended, these people said. The session was intended to allow Microsoft to present its vision of a combined co, and Yahoo executives mostly listened, one of the people said. No further talks have been scheduled. Several executives from both Yahoo and Microsoft attended the meeting, which took place near Yahoo’s headquarters. It wasn’t immediately clear if Chief Executive Officer Jerry Yang and Microsoft CEO Steve Ballmer participated. The talks came after Yahoo last week extended the deadline for shareholders to nominate director candidates to be voted on at its annual meeting. Microsoft may nominate candidates as a lever to try to push the deal through. Microsoft has refused to consider raising its offer unless it gets a closer look at Yahoo’s books, the people familiar with the matter say. Separately, Yahoo said it is moving its European headquarters to Switzerland from London. The co said it will move to a site on the shores of Lake Geneva within 18 months. The move is “part of our ongoing international business strategy to increase competitiveness, deliver financial results, performance and efficiencies,” the co wrote in a release.
05:29 Early Newspaper Headlines: MSFT/YHOO - TGT/JPM
WSJ: Microsoft (MSFT) pitches merger vision to Yahoo (YHOO) at meeting… SEC to widen range for asset valuations… Target (TGT), JP Morgan (JPM) in talks on credit-card deal.
01:02 Airvana and Foundry Networks mentioned positively in Weekday Trader - Barron’s Online
Barron’s Online screened tech companies with market caps between $50 mln and $2 bln and came up with a couple companies that could be winners over the next 12 months: wireless-equipment maker Airvana (AIRV), and computer-networking firm Foundry Networks (FDRY). Airvana’s technology is something all the major cellular operators plan to implement at some point, but sales are uneven quarter to quarter, hence the stock’s 30% drop in the last six months. Analysts expect modest sales growth of 11% this year at Foundry. But its $966 mln in cash stands in stark contrast to the co’s $1.6 bln market cap.
01:01 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com
Cramer was bearish on Under Armour (UA), Gilead Sciences (GILD), Systemax (SYX), Western Refining (WNR) and Advanced Micro Devices (AMD).
01:00 ‘Mad Money’ Recap: Lightning Round - TheStreet.com
Cramer was bullish on Sadia (SDA), Salesforce.com (CRM), Research In Motion (RIMM), Apple (AAPL), United Technologies (UTX), Chicago Mercantile Exchange (CME), Energy Transfer Partners (ETP), Sunoco (SUN), Marathon Oil (MRO), Applied Materials (AMAT) and Intel (INTC).
00:59 Cramer’s ‘Mad Money’ Recap - TheStreet.com
On Thursday’s edition, Jim recommends Vale (RIO) and says the co looks attractive for investors after its failed attempt to acquire the European mining company Xtrada. “It doesn’t look like Vale is going to pay up for Xtrada, and that means they’re smart,” he said. But he also noted that once the arbitrage pressures are relieved, Vale’s stock will head higher. Using estimates from Goldman Sachs, Cramer sees Vale hitting $57 a share. Next, he recommends Dow Chemical (DOW) for its 4.5% yield and two recent partnerships, a JV with Kuwait and the other with Monsanto (MON). He believes downside is limited.
00:58 WIRES On The Wires
Medco Health Solutions (MHS) announces that it has agreed to sell $300 mln aggregate principal amount of 6-1/8% senior notes due March 15, 2013 and $1.2 bln aggregate principal amount of 7-1/8% senior notes due March 15, 2018 in an underwritten public offering.
00:57 ULTR Ultrapertol misses by $0.10, beats on revs (11.99 )
Reports Q4 (Dec) earnings of $0.10, excluding non-recurring items, $0.10 worse than the First Call consensus of $0.20; revenue rose 26.5% year/year to $57.8 mln vs the $51.2 mln consensus.
00:49 CX CEMEX S.A. issues in-line Q108 sales guidance (28.20 )
Co issues in-line guidance for Q1 (Mar), sees Q1 (Mar) revs in excess of $5300.0 bln vs. $5.41 bln First Call consensus. Co also expects EBITDA for Q108 of around $920 mln, an increase of about 6% vs the same period last year, while operating income is expected to be close to $420 mln, 25% lower than the same period a year ago.
00:44 KOG Kodiak Oil & Gas misses by $0.01 (2.20 )
Reports Q4 (Dec) loss of $0.02, $0.01 worse than the First Call consensus of ($0.01); revenue rose 51.6% year/year to $2.35 mln vs the $3.05 mln consensus.
00:38 ERJ Embraer SA reports Q4 (Dec) results, beats on revs (41.79 )
Reports Q4 (Dec) GAAP earnings of $1.08 per share, may not be comparable to the First Call consensus of $0.75; revenues rose 77.0% year/year to $1.88 bln vs the $1.8 bln consensus.
00:31 QNTA Quanta Capital announces special cash dividend of $1.75 per share (2.74 )
Co announces special cash dividend of $1.75 per share payable on March 28, 2008. Record date is March 25, 2008.
00:29 RSO Resource Capital reports Q4 results (7.03 )
Reports Q4 (Dec) earnings of $0.43, excluding non-recurring items, $0.02 better than the First Call consensus of $0.41; revenue rose 40.1% year/year to $14.08 mln vs the $14.70 mln consensus.
