By Michael Baron, CBS.MarketWatch.com
Stocks to Watch
Barr Laboratories says it will begin selling a generic version of Prozac by the end of the week. Barr said a federal district judge in Indiana invalidated a December 2003 patent Eli Lilly held for Prozac and also vacated an injunction that prevented Barr from launching the generic version. Lilly's current patent on Prozac expires at midnight on Thursday and the Food and Drug Administration has given Barr tentative approval to sell its drug. Final approval is expected Thursday. Lilly /zigman2/quotes/200106384/composite LLY +1.07% says it plans to appeal. Shares of Barr closed up $3.60, or 4.2 percent, at $89.38. Eli Lilly ended up 71 cents at $79.09.
Cable Design Technologies warned on Monday that fourth-quarter sales and profits wouldn't meet analysts' expectations. The company blamed a downturn in the telecommunications market, which they said should continue into next year. The Pittsburgh-based maker of high bandwidth connectivity products said revenue should come in between $160 million and $165 million, well below the $195 million expected by analysts polled by First Call/Thomson Financial. Profits before special charges should range from 7 to 12 cents -- compared with the 16 cents previously expected. The company also cut 600 jobs, reaching a total of 900 this year. It also expects to incur $20 million in charges in the fourth quarter related to the job cuts, impairment of goodwill, and to reflect higher-than-normal bad debt and inventory valuation adjustments. However, Cable Design expects to save $25 million a year as a result of its restructuring efforts. Shares of Cable Design closed at $15.65, up 1.6 percent, on Monday.
Online travel site Expedia /zigman2/quotes/202291990/composite EXPE -0.66% beat analyst estimates for operating income by a nickel for the fourth quarter ended June 30. Shares settled down 3.7 percent to $48.14 ahead of the news. See full story.
After the market closed, FreeMarkets posted a narrower-than-expected second-quarter loss of $6.6 million, or 17 cents a share, beating the average expectation of analysts polled by First Call. See full story.
International Multifoods said Monday the Federal Trade Commission review of the proposed General Mills-Pillsbury merger will delay its acquisition of Pillsbury's dessert and specialty products business. International Multifoods now expects the purchase to close by the end of September, not August, as previously planned. As a result, the Minneapolis-based food distributor expects full year 2002 earnings to be in the range of $1.25 to $1.35 per share. Analysts polled by First Call/Thomson Financial had expected the company to earn $1.47 per share. Shares of International Multifoods closed unchanged at $21 ahead of the news.
Lydall /zigman2/quotes/206637349/composite LDL +0.02% is off $2.37, or 17.7 percent, to $10.99, after the Manchester, Conn., provider of air filtration, thermal and acoustic products reported second-quarter earnings from continuing operations to $3.2 million, or 20 cents a share, 2 cents short of the average estimate of analysts polled by First Call/Thomson Financial.
Macrovision said Monday second quarter net income fell 13 percent to $5.1 million, or 10 cents per share, from $5.7 million, or 11 cents per share, in the same period a year earlier. Shares of the security software maker dropped $3.82, or 6 percent, to $61.57 in after-hours trading.
Mercury General /zigman2/quotes/200837562/composite MCY +1.11% added $3.62, or 10.7 percent, to $37.20, after the Los Angeles automotive insurer reported a second-quarter operating profit of $26.5 million, or 49 cents a share, up from the year-ago period. See full story.
Motorola said Monday it will buy RiverDelta Networks for $300 million in stock. Motorola shares ended Monday up 3 cents at $19.03. See full story.
On July 16, SCI agreed to be bought by competitor Sanmina /zigman2/quotes/207312436/composite SANM -2.24% for $6 billion in equity and debt. Ahead of Monday's report, SCI shares ended down $1.10, or 3.8 percent, at $27.70. Sanmina shares ended down 78 cents, or 3.6 percent, at $20.78.
SCI Systems /zigman2/quotes/200293647/composite SCI +1.14% reported a fourth-quarter loss of $840,000, or 1 cent a share, on revenue of $1.99 billion. During the same quarter last year, net income was $57 million, or 38 cents a share, on revenue of $2.3 billion. Income, excluding realignment charges, was 27 cents a share, matching the average target of analysts surveyed by First Call/Thomson Financial. The contract manufacturer said it could incur charges of $70 million to $100 million during the September quarter due to an ongoing program to realign its capacity and organization. The company expects earnings, excluding charges, of 23 cents to 25 cents a share on revenue of $1.7 billion to $1.8 billion during its first quarter.
Amarin /zigman2/quotes/201885540/composite AMRN -0.20% jumped 25.5 percent to $16.16 after the company formed a strategic partnership with Elan. The companies plan to "establish a franchise in the therapeutic area of Parkinson's disease." Specifically, the deal gives Amarin the exclusive U.S. marketing, sales, and distribution rights to Permax tablets, a treatment for Parkinson's. Amarin also received an option to acquire Zelapar, a dissolving formulation of selegiline tablets, for treatment of Parkinson's, and an option to acquire Permax.
Avenue A advanced 14 cents, or 10.9 percent, to $1.43 after the Seattle digital marketing services firm announced it will partner with AT&T Wireless .
Carriage Services /zigman2/quotes/203015698/composite CSV -0.02% leapt 19.4 percent to $6.95 after the Houston death care firm reported second-quarter earnings $2.1 million, or 12 cents a share, up from a year-ago loss of $800,000, or 5 cents a share, and 3 cents ahead of the average estimate of analysts polled by First Call/Thomson Financial. Revenue advanced more than 7.2 percent in the latest three months to $41 million from $38.3 million in the same period a year earlier. Same-store revenue jumped 11.1 percent in the quarter due to higher funeral volumes and averages, and higher cemetery revenue.
Copper Mountain gained 26 cents, 8.7 percent, to $3.24 after the Palo Alto, Calif., provider of copper-based broadband access products agreed to provide its CopperEdge 2000 digital subscriber line concentrators to Sprint Canada to launch its nationwide business DSL service.