After Hours Indications : S&P futures at 1220 trade 6 points under
fair value while Nasdaq 100 futures at 1736 trade 29 points below
fair value. Earnings warnings from two big tech names -- AMD and
EMC -- are generating sell pressure in the late session.
After Hours Movers : Prices vs. 4 pm close... AMD -4.40 and
EMC -2.03 earnings warnings are the big stories tonight. INTC
-1.36 lower in sypmpathy with AMD's warning as it looks as if the
two companies have pricing issues. QLGC -3.7, BRCD -2.2 and
EMLX -2.5 lower in sympathy with the EMC warning.
earnings of $0.46-0.50 vs. current EPS estimate of $0.55; the
company cited two factors as the primary reasons for the earnings
shortfall: a lower-than-expected table-games hold percentage at the
Rio in Las Vegas and accelerating weakness in retail, or non-tracked
walk-in, business stemming from the nation's economic slowdown.
Advanced Micro (AMD) 28.64 -0.83: -- Update -- Trading
resumes... AMD -3.64 versus the 4 pm close.
EMC Reaction : Prices vs. close... EMC -2.03 after warning for
Q2. This is the first warning from the storage group which has sector
peers QLGC -1.7, EMLX -1.8, BRCD -1.9 trading lower.
EMC Corp (EMC) 30.03 -1.59: Company warns for Q2; expects
total revs to be approx $2 bln vs. consensus of $2.46 bln; sees
earnings per share of $0.04-$0.06 vs. consensus of $0.18 EPS; says
"Business is being impacted to a degree with each unanticipated
downward step in the global economy. It now appears that there are
fewer dollars being invested in information technology than a year
ago." .
After Hours Indications : Futures trading carries a negative bias on
the heels of AMD's negative earnings pre-announcement. S&P
futures at 1222, trade four points below fair value while Nasdaq 100
futures at 1754, trade eleven points below fair value.
AMD Reaction : Prices vs. 4 pm ET close... Chip and chip
equipment issues responding modestly to AMD's warning. INTC
-0.68, NVLS -0.10; AMAT -0.28. AMD itself has yet to trade in
the late session.
Talarian (TALR) 1.38 -0.02: Company warns for Q3; sees loss of
$0.20-0.22 per share vs. current EPS estimate of ($0.19).
Advanced Micro (AMD) 28.64 -0.83: -- Update -- Says Q2 revs
were $985 mln vs. consensus est of $1,080 mln; earnings for Q2
expected to be $0.03-$0.05 per share vs. consensus ests for $0.27
EPS; cites weakness in the PC mkt which depressed avg selling
prices.
Advanced Micro (AMD) 28.64 -0.83: -- Update -- Company
warns sales declined 17% from the first quarter; cites weaker than
expected flash memory demand.
EXE Tech (EXEE) 4.90 -0.50: Company warns for Q2; sees loss of
$0.08-0.11 vs. current EPS estimate of $0.04; revs for Q2 are
expected to be $25-$26 mln vs. consensus ests of $30.5 mln; will
eliminate approximately 120 positions across all functions and regions,
representing approximately 17% of the company's workforce.
After Hours Movers : Prices relative to 4 pm close... Investors
have a few more earnings warnings to consider tonight. TKLC -3.85
taking the worst of it after warning for its current quarter. INTC
-0.39 trading off as traders wait to see why AMD has been halted.
eXcelon (EXLN) 1.32 -0.08: Company warns for Q2; sees loss of
$0.31-0.33 vs. current EPS estimate of ($0.07).
Management Ntwrk (TMNG) 6.25 +0.15: Company warns for
Q2; sees revs $13.5-14 mln vs. consensus est of $18 mln; sees
earnings of $0.07-$0.08 vs. current EPS estimate of $0.10; says
demand for consulting services was affected by the slowdown in the
global telecom industry.
Int. Intelligence (ININ) 10.02 -0.38: Company warns for Q2; sees
loss of $0.16-0.20 vs. current EPS estimate of ($0.05); revs for Q2
will be in the range of $12.5-$13.0 mln vs. consensus ests for $14.3
mln; says many organizations are reducing spending on all technology
for the short term due to economic uncertainty.
Optibase Ltd. (OBAS) 5.52 -0.01: Company warns for Q2; sees
loss of $0.20-0.25 vs. current consensus EPS estimate of ($0.17);
cites continued broad weakness in the technology markets.
Argonaut (AGNT) 5.83 +0.13: Company warns for Q2; sees
revs of $3-3.2 mln vs. consensus est of $5 mln; cites a challenging
business environment characterized by delayed or postponed
purchasing decisions and reduced capital expenditure budgets as a
result of uncertain economic conditions.
Advanced Micro (AMD) 28.64 -1.12: Trading halted; news
pending.
TEKELEC (TKLC) 25.45 -0.81: Company warns for Q2; sees
earnings of $0.02-0.03 vs. current EPS estimate of $0.17; "Near the
quarter's end, we witnessed an abrupt belt tightening by customers,
resulting in an unanticipated reduction in order activity from our
customer base -- both carriers and equipment manufacturers -- that
we had been able to largely avoid until now." .
Starbucks (SBUX) 21.92 -0.07: Reports a 3% increase in June
same-store sales; total revenues for the period increased 19% to
$259 mln.
BMC Software (BMC) 22.78 -0.83: Company warns for Q1, sees
revs in the range of $338-$345 mln vs. consensus ests of $361 mln;
diluted earnings per share are preliminarily estimated to be in the range
of $.06-$.08 vs. consensus ests for $0.13 EPS; says the current
economic environment is challenging and as a result its closure rates at
the end of the quarter were lower than we expected.