09:01 AGN Allergan: Public Citizen petitions for stronger Botox warnings - Bloomberg (65.01 )

09:01 DRE Duke Realty Announces Fourth Quarter Investment Activity; new investments total $377 mln

..
09:01 JADE LJ Intl Announces Continued Listing on Nasdaq

…
09:01 UIS Unisys signs new IT outsourcing services contract worth $48 mln (3.46 +0.06) -Update-

…
09:01 BEN prelim $2.12 vs $1.90 First Call consensus; revs $1.69 bln vs $1.68 bln First Call consensus

09:01 NUE prelim $1.26 vs $1.21 First Call consensus; revs $4.40 bln vs $4.21 bln First Call consensus

09:01 THRM Thermage Appoints Clint Carnell as Chief Operating Officer

…
09:01 SCANX Gapping up

In reaction to strong earnings/guidance: FFIV +17.4% (also upgraded to Outperform at Baird, announces buy back up to $200 mln in stock), NVEC +16.1%, TRMB +15.1% (also announces repurchase program up to $250 mln), SYMC +9.2%, PLXS +8.4%, PLCM +7.7%, CBST +7.5%, QCOM +7.3%, LSI +7.2%, POT +6.5%, WDC +6.3% (also upgraded to Buy at Deutsche Bank, tgt raised to $38 at Hambrecht), XRX +5.7% (also announces $1 bln buyback), SBCF +4.9%, NOK +4.8%, CTXS +4.4%, FLWS +4.1%, CVO +3.8%, PRXL +3.5%, BAX +3.4%, COF +2.9%, SANM +2.8%, PSSI +2.1%, AMCC +1.7%, BXS +1.5%, WSTL +1.3%, QLGC +1.3%, NE +1.3%… Select European banks trading higher despite weakness at Societe Generale after the co uncovered fraud by a rogue trader: CS + 4.1%, BCS + 3.4%, DB + 1.8%… Other news: MBRK +192.8% (says the FDA approves its Amoxicillin PULSYS for pharyngitis/tonsillitis in adolescents and adults), ADLR +13.3% (Adolor and GSK confirm ‘favorable’ FDA advisory committee meeting for ENTEREG), MBI 7.8%and ABK +5.1% (Bond insureers trading higher on continued reports regarding potential bailout), SHRP +2.6% (Sharper Image and EB Brands sign licensing agreement)… Analyst upgrades: HGSI +8.5% (upgraded to Outperform at Bear Sterns), MFE +6.5% (upgraded to Buy at Citigroup, upgraded to Outperform at Bear Sterns), THC +2.8% (upgraded to Equal Weight at Lehman), NNDS +2.3% (upgraded to Top Pick at RBC), ATW +1.9% (upgraded at Raymond James), AAUK +1.9% (upgraded to Buy at Citigroup), GD +1.7% (upgraded to Outperform at Wachovia), LIZ +1.4% (upgraded to Buy at Merrill), TOL +1.4% (upgraded to Outperform at Raymond James), BMR +1.1% (upgraded to Outperform at Wachovia).
09:00 TECD Tech Data announced a distribution agreement with Fujitsu Computer Systems

…
09:00 OVRL prelim ($0.51) vs ($0.37) First Call consensus; revs $34.1 mln vs $36.70 mln First Call consensus

09:00 ECONX Weekly Initial Jobless Claims Follow-up - Still no sign of recession in the claims data

New claims for unemployment are usually considered an important canary in the coal mine warning signal of recession. This cycle, the data are largely being discounted. This is because new claims still do not indicate that businesses have entered into recessionary mode. Claims remain at levels far below that which would indicate significant layoffs or declines in overall payrolls. Claims for the week ended Jan. 19 dropped to 301,000 from 302,000 the prior week. The four-week moving average is at just 314,750. Claims had risen near 350,000 for two weeks in Dec in what appeared to be an uptrend that signaled recession was developing. The drop since then and the data the past two weeks are nothing short of stunning (from a surprise standpoint). Layoffs apparently remain at levels normally consistent with a robust economy. Claims have risen to 375,000 ahead of previous recessions and over 450,000 into the full blown recession. There is no indication of even a slight trend in that direction in mid-Jan. The new claims data should be positive for the stock mkt and economic outlook, but good news is easily discounted given the conviction that recession is imminent.
09:00 ORI prelim $0.09 vs $0.09 First Call consensus; revs $1 bln vs $977.65 mln First Call consensus

08:59 S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +15.8.

A positive start is still expected. Earnings reports results have been mixed, but have not been bad.
08:58 SY Sybase beats by $0.05, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY08 EPS above consensus, revs in-line (25.02 )

Reports Q4 (Dec) earnings of $0.61 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.56; revenues rose 15.1% year/year to $295.2 mln vs the $286.6 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.30-0.35, excluding non-recurring items, vs. $0.33 consensus; sees Q1 revs of $240-250 mln vs. $246.25 mln consensus. Co guides for FY08, sees EPS of $1.85-1.90, excluding non-recurring items, vs. $1.84 consensus; sees FY08 revs of $1.07-1.09 bln vs. $1.08 bln consensus.
08:56 QLTI QLT Inc upgraded to Above Average at Caris- tgt $7 (3.70 )

Caris upgrades QLTI to Above Average from Average with a $7 tgt saying they believe the recent pullback in QLTI’s share price in relation to overall market volatility has improved the upside potential relative to downside risk for QLTI shares. The firm says in 2Q08 they expect the FDA will make a decision on the label revision for Aczone for acne. They expect that the FDA will remove the label requirement for G6PD testing, but may leave a black box warning on the label. Although this may limit the full potential of Aczone, they believe that this is mostly priced into the stock.
08:56 NWA Northwest Airlines merger talks slow over leadership - Minneapolis Star Tribune (17.95 )

Minneapolis Star Tribune reports merger talks involving DAL and the co have hit a stumbling block over which executives would lead the combined airline, according to people familiar with the talks. Many analysts have presumed that current Delta CEO Richard Anderson would serve as CEO of the merged airline. But who would join him as the carrier’s key executives appears to be a major topic still under discussion. “The issue is about who would be in the top management of the company,” a source close to the talks said Wednesday… Minneapolis attorney George Singer, who does merger and acquisition work in his practice, said Wednesday that he is not surprised that Delta and Northwest are grappling with the issue of fielding the surviving leadership team. However, Singer said: “The acquirer has a pretty good idea of what executives they need to continue on a go-forward basis and for what period of time.”
08:56 SY sees FY08 $1.85-1.90 vs $1.84 First Call consensus; sees revs $1.07-1.09 bln vs $1.08 bln First Call consensus

08:56 SY sees Q1 $0.30-0.35 vs $0.33 First Call consensus; sees revs $240-250 mln vs $246.25 mln First Call consensus

08:55 SY prelim $0.61, ex items vs $0.56 First Call consensus; revs $295.2 mln vs $286.59 mln First Call consensus

08:53 China GDP expands 11.2%, supporting global growth; Inflation cools to 6.5% in December - Bloomberg.com

Bloomberg.com reports China’s economy expanded more than 11%, supporting global growth as a recession looms in the U.S. Gross domestic product rose 11.2% in the three months ended Dec. 31, compared with 11.5% in the third quarter. Inflation cooled to a 6.5% pace in Dec, still double the central bank’s annual target, from an 11-year high of 6.9% in Nov. China, poised to become the biggest contributor to global growth this year, risks triggering a sudden slowdown by curbing lending to tame prices just as export demand weakens.
08:51 POWR PowerSecure: Another recurring rev contract; undiscoverd DR provider gaining traction - Roth (12.15 )

Roth notes yesteday POWR announced a new seven-year, recurring rev contract with an investor-owned utility, providing customers with stand-by power and the utility access to DG assets for demand response capability. Once fully implemented, the contract is expected to generate $8-$10 mln in annual recurring rev to POWR. With the addition of this contract, they est POWR’s recurring rev base will approach approx $15 mln per year, upon installation.
08:51 AVX AVX Corp misses by $0.01, reports revs in-line (13.27 )

Reports Q3 (Dec) earnings of $0.22 per share, $0.01 worse than the First Call consensus of $0.23; revenues rose 13.6% year/year to $429.5 mln vs the $431.5 mln consensus.
08:50 AVX prelim $0.22 vs $0.23 First Call consensus; revs $429.5 mln vs $431.50 mln First Call consensus

08:50 UNP Union Pacific, in conf call slides, gives EPS guidance for Q1 and FY08; also gives vol growth (117.01 ) -Update-

In co slides prepared for its Q4 conf call, co says they see Q1 EPS of $1.50-$1.70 (vs $1.69 consensus); says volume growth to be flat to +2%. Co sees FY08 EPS of $7.75-$8.25 (consensus is $8.19). For 2008, co sees volume growth at -1% to +1%.
08:49 WIRES On The Wires

Hewlett-Packard (HPQ) and Sony Pictures Home Entertainment announces that S.P.H.E. will license select catalog titles from its vast home video library for production and distribution via HPQ’s DVD manufactured-on-demand service… Energy Services Acquisition (ESA) announces that it has entered into a Stock Purchase Agreement to acquire GasSearch Drilling Services. The agreed upon total acquisition cost is $23.5 mln, payable in a combination of cash and stock.
08:48 AZ Allianz: Prelim 07 net profit +14%; Q4 bank operations revaluation weighs - DJ (16.89 )

DJ reports the co reported a rise of around 14% in 2007 net profit to around EUR 8 bln, confirming a previous forecast the co renewed in Nov. The rough set of preliminary figures published Thursday also included substantial fourth-quarter writedowns of around EUR 900 mln at its banking operations for the fallen value of structured products in the bank’s trading book. Allianz said group net profit rose to around EU 8 bln from EUR 7.02 bln in 2006, with operating profit topping EUR 10.8 bln, slightly below the co forecast of EUR 11 billion and up from EUR 10.4 bln in 2006. The banking segment reported an operating loss of around EUR 450 mln for Q4, largely due to some EUR 900 mln in valuation adjustments on structured products in the trading book. Still, the banking operations booked an operating profit for the full year of around EUR 750 mln. (Briefing.com note: Shares are trading at 18.24 pre-market)
08:48 IMB IndyMac Banc: Follow up on Fitch ratings downgrade (4.36 ) -Update-

As mentioned at 8:44, Fitch Ratings has downgraded the Long-term Issuer Default Ratings (IDRs) of IMB and Indymac Bank FSB to ‘BB’ from ‘BBB-’. The Rating Outlook is Negative. Fitch’s action reflects the continued weakness of the U.S. residential mortgage market and virtual absence of a private, secondary mortgage market. Approximately $440 million in debt is involved in Fitch’s rating action. Fitch’s downgrade reflects the expectation that IMB’s near-term return to profitability will be challenging as changes in mortgage industry dynamics, once viewed as temporary, become more permanent. Fitch believes that, due to company’s mono-line focus and diminished competitive advantage, credit risk is more speculative in nature. Fitch views IMB’s efforts to right size costs while maintaining adequate capital and liquidity positions as appropriate given the operating environment.
08:47 MOT Motorola: Mobile devices challenges worsen; lowering tgt to $18 - Kaufman (10.01 )

Kaufman notes MOT reported largely in line 4Q07 results of $9.646 bln in rev and pro forma EPS of $0.14. However, mgmt’s guidance for 1Q08 was extremely disappointing in projecting an operating loss of $0.05-$0.07 per share predicated on steep declines in volume and revs at the Mobile Devices unit. The net result of changes to firm’s model is an outlook of $7.6 bln in revs for 1Q08 and an operating loss of $0.05 per share
08:46 NVEC NVE Corp upgraded to Outperform at Northland Securities- tgt $30 (2026 )

Northlan Securities upgrades NVEC to Outperform from Market Perform with a $30 tgt following earnings and saying saying they had been concerned about margin pressure due to higher inventory levels and the potential for competitive pressures at a key medical OEM customer. However, they believe that these issues are largely behind the company. The company’s viewpoint on this matter has been corroborated by their independent channel checks.
08:44 IMB IndyMac Banc: Fitch downgrades long-term IDR to junk - Bloomberg

IDR stands for Issuer Default Rating.
08:43 Semiconductor Industry: Cutting estimates and highlighting preferred names

Caris notes that while they have been cautious on semiconductor stocks, it’s now clear that they have not been cautious enough. With fundamentals now clearly set to soften, and news flow likely to remain negative, firm is cutting ests and lowering price targets on several stocks in their universe. Investors are unlikely to rush back into the group, but fundamentally some names are better-positioned than others. They recommend that longer-term investors consider judiciously building positions in Texas Instruments (TXN), Broadcom (BRCM), and INTC (INTC), and continue to avoid Micron (MU), Qimonda (QI), and Advanced Micro Devices (AMD).
08:42 ATW Atwood Oceanics upgraded to Outperform from Market Perform at Raymond James (81.45 ) -Update-

08:41 THQI THQ Inc downgraded to Sector Perform from Outperform at Pacific Crest (25.10 ) -Update-

08:41 HUBB Hubbell reports Q4 EPS of $0.82 vs $0.84 consenus; revs $614.7 mln vs $614.1 mln consensus (117.01 )

Co sees FY08 EPS of $3.70-3.90 vs $3.98 consensus; sees FY08 (Dec) revs of 2.63-2.68 bln vs. $2.65 bln consensus.
08:40 WIRES On The Wires

TiVo (TIVO) announces that Symantec (SYMC) has signed on as the first advertiser to sponsor Interactive Advertising during CNET’s TiVoCast program… GenVec (GNVC) announces that it has entered into a manufacturing development agreement with Cobra Biomanufacturing for TNFerade.
08:39 HUB.B prelim $0.84, ex items, vs $0.84 First Call consensus; revs $614.7 mln vs $614.13 mln First Call consensus

08:39 HGSI Human Genome: Less visibility on Albuferon, but stock appears oversold, tgt cut to $10 - Citi (5.62 )

Citi cuts their tgt on HGSI to $10 from $17 as they are reducing Albuferon’s penetration into the HCV market due to a less competitive profile. With the stock trading close to cash (~$5/share), it looks oversold based on the pipeline, but firm concede that positive news from darapladib and Syncria are needed to regain confidence in the stock. Firm continues to model Albuferon approval in 2010 as the timeline for ph 3 has not changed. However, they trim their U.S. penetration ests from 15% to 7% in ‘10 and from 35% to 20% in ‘11, leading to U.S. Albuferon revenues of $133M in ‘10 and $305M in ‘11 from $283M and $381M previously. While the 900mcg arm might ultimately be clean, firm would rather take a more conservative stance at this point.
08:38 DLX Deluxe misses by $0.02, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY08 EPS in-line, revs below consensus (26.18 +0.61)

Reports Q4 (Dec) earnings of $0.77 per share, $0.02 worse than the First Call consensus of $0.79; revenues fell 3.1% year/year to $414 mln vs the $420.2 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.50-$0.54 vs. $0.69 consensus; sees Q1 revs of $375-$385 mln vs. $403.83 mln consensus. Co issues mixed guidance for FY08, sees EPS of $3.00-$3.20 vs. $3.06 consensus; sees FY08 revs of $1.56-$1.61 bln vs. $1.62 bln consensus.
08:38 TOL Toll Brothers: Hearing upgraded to Outperform at Raymond James (20.56 ) -Update-

08:38 RYL Ryland Group: Hearing upgraded to Outperform at Raymond James (31.22 )

08:37 BLL Ball Corp reports EPS in-line, beats on revs; issues FY08 EPS guidance (43.08 )

Reports Q4 (Dec) earnings of $0.60 per share, excluding non-recurring items, in-line with the First Call consensus of $0.60; revenues rose 10.3% year/year to $1.76 bln vs the $1.71 bln consensus. Co guides for FY08, sees EPS of greater than $3.50 reported in 2007 vs. $3.74 consensus.
08:36 GSIC GSI Commerce says for FY07, net rev is expected to be approximately $748-$750 mln (16.24 ) -Update-

Co reaffirms FY07 revenue guidance, sees revs of $748-$750 mln vs consensus of $748.05 mln. Co also sees adjusted EBITDA to be approx $53.0 - $54.0 mln, an increase of approx 38% to 40% from $38.5 mln in fiscal 2006, and essentially in-line with the co’s most recent guidance range of $54 -$57 mln.
08:36 FLWS 1-800-FLOWERS beats by $0.02, misses on revs; reaffirms Y08 EPS, EBITDA guidance, lowers Y08 rev guidance (7.04 )

Reports Q2 (Dec) earnings of $0.29 per share, $0.02 better than the First Call consensus of $0.27; revenues rose 1.3% year/year to $334.2 mln vs the $352.3 mln consensus. Co sees Y08 revs up 2-4% yr/yr, which equates to approx $931-949 mln vs $975.8 mln consensus, compared to previous guidance of 7-9%. Co reaffirms Y08 EPS growth of 30-35% yr/yr, which equates to approx $0.34-0.35 vs $0.34 consensus, with EBITDA growth of 20-25%.
08:35 ARAY Accuray announces new treatment planning service offering (15.80 )

The co announces that the company will begin offering a treatment planning service to new and existing CyberKnife customers. This new service will allow these centers to access a dedicated team of remote scientists specializing in CyberKnife radiosurgery treatment planning, thereby giving each center the flexibility and capacity to treat more patients without altering their staffing.
08:34 FRE Freddie Mac says aggregate unpaid principal balance of retained portfolio increased to $720.8 billion at December 31, 2007 (32.52 )

The co announces the aggregate unpaid principal balance of its retained portfolio increased to $720.8 bln at Dec 31, 2007; Total mortgage portfolio has increased at an annualized rate of 15.1% ytd and 18.1% in Dec; The amount of retained portfolio mortgage purchase and sales agreements entered into during the month of Dec totaled $8.0 bln, up from the $(2.0) bln entered into during the month of Nov; Total guaranteed PCs and Structured Securities issued have increased at an annualized rate of 17.7% year-to-date and 21.4% in Dec; The single-family delinquency rate for all loans was 60 basis points in Nov, up from 54 basis points in Oct; FRE’s potential loss in portfolio mkt value related to PMVS-L and PMVS-YC averaged $385 mln and $50 mln, respectively, in Dec, up from Nov. Duration Gap averaged 0 months in Dec, unchanged from Nov… In addition, the co believes it is meeting the terms of OFHEO’s Sept 19, 2007 interpretation.
08:34 GMT GATX beats by $0.01, beats on revs; guides FY08 EPS in-line; announces $200 mln buyback (33.43 )

Reports Q4 (Dec) earnings of $0.62 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.61; revenues rose 7.1% year/year to $326.7 mln vs the $320.8 mln consensus. GMT announces a $200 mln buyback. Co issues in-line guidance for FY08, sees EPS of $3.15-3.35 vs. $3.15 consensus.
08:34 LUV Southwest Air: Fuel hedges keep profits going in Q4 - Calyon (12.76 )

Calyon notes that LUV wa able to continue its string of quarterly profits in this high oil price environment through fuel hedges, producing an operating margin of over 5% in 4Q07 and 8% for the full year. Even though 70% of LUV’s 2008 fuel needs are hedged, firm is lowering their 2008 EPS est to $0.60 from $0.73 to reflect co guidance and higher fuel prices (consensus is $0.67). Firm is introducing their 2009 EPS est of $0.65 (consensus is $0.83)
08:33 CRXX Combinatorx says sees ending 2008 with revs of $15-$20 mln (4.40 )

Co announces goals and guidance for 2008. They expect to end 2008 with revenue of $15-20 mln, a net loss of $49-55 mln and cash/cash equivalents of $58-64 million.
08:33 DLX sees FY08 $3.00-3.20 vs $3.06 First Call consensus; sees revs $1.56-1.61 mln vs $1.62 bln First Call consensus

08:33 SBLK Star Bulk Carriers approves share and warrant re-purchase plan of up to an aggregate of $50 mln of its common stock (9.30 )

08:33 DLX sees Q1 $0.50-0.54 vs $0.69 First Call consensus; sees revs $375-385 mln vs $403.83 mln First Call consensus

08:33 SLB Schlumberger tgt cut to $102 from $114 at Calyon (80.34 )

Calyon cuts their tgt on SLB to $102 from $114 saying they believe the shares of SLB represent a compelling value at $80. Firm says at its recent low of $74, the stock was trading at a 10-year low P/E of 15.5x forward 12-month consensus earnings. Despite the co’s view that 2008 will be a “transition year” and that growth will slow, the firm says they still forecast 23% earnings growth in 2008.
08:33 S&P futures vs fair value: +6.7. Nasdaq futures vs fair value: +14.5.

Stock futures shed some points and then gain some ground on a better than expected weekly jobless numbers. There were 301K initial jobless claims for the week ended Jan. 19, which is very close to the previous week’s revised reading of 302K. Economist were expecting 320K claims. Separately, crude oil for March delivery is trading up 1.3% to $88.08. The government’s weekly inventory report is set for release at 10:30 ET, one day later than usual due to the market’s closure on Monday.
08:32 GSIC GSI Commerce to Acquire e-Dialog (16.24 )

08:32 BLL prelim $0.60, ex items vs $0.60 First Call consensus; revs $1.76 bln vs $1.71 bln First Call consensus

08:32 ABTL Autobytel sells AVV business for $22.75 million in cash (2.32 )

The co announces that it has sold certain assets and liabilities of its AVV data extraction and customer relationship management software business to Dominion Enterprises for $22.75 mln in cash, plus a working capital payment of approximately $1.1 mln which remains subject to adjustment. Autobytel expects to record a gain of approximately $8.2 mln in connection with the transaction.
08:32 DLX prelim $0.77 excluding items, vs $0.79 First Call consensus; revs $414 mln vs $420.20 mln First Call consensus

08:31 FLWS sees Y08 revs up 2-4% yr/yr

08:31 TTWO Take-Two: Rockstar Games announces release date for Grand Theft Auto IV is April 29th, 2008 (14.46 )

Co announces Grand Theft Auto IV will be simultaneously available for Xbox 360 video game and entertainment system and PLAYSTATION 3 computer entertainment system and will be in stores worldwide on April 29, 2008.
08:31 S Sprint Nextel Announces Key Leadership Changes (8.80 )

Co announced changes in its senior management team. Paul Saleh, Chief Financial Officer, Tim Kelly, Chief Marketing Officer, and Mark Angelino, president, Sales and Distribution will leave the company Friday, January 25. William Arendt, currently senior vice president and controller of Sprint Nextel, will serve as acting Chief Financial Officer. John Garcia, currently senior vice president, Product Development and Management, will serve as acting Chief Marketing Officer. Paget Alves, currently Sprint Nextel’s regional president for sales and distribution, will serve as acting president, Sales and Distribution. All will report directly to Hesse.
08:31 FLWS reaffirms Y08 EPS growth of 30-35% yr/yr with EBITDA growth of 20-25%

08:31 JST Jinpan International raises FY07 revenue, net income and EPS guidance (22.22 )

Co announces it has not yet completed its financial audit of the 2007 fourth quarter ending December 31, 2007, however, based on the sales information as of January 23, 2008, overall demand for the co’s power generating equipment by Chinese and international customers remained very healthy in the 2007 fourth quarter. JST received a higher than expected flow of orders in December as well as a higher than expected contribution to its net income due to increased sales of higher margin products. As a result, the co expects 2007 revenue, net income and diluted EPS to be higher than previously forecasted guidance. The co now expects revenue of approximately $116 mln, net income to be in the range of $14.5-15.0 mln, and diluted EPS of approximately $1.79-1.85. This compares to prior 2007 revenue, net income and diluted EPS guidance of approximately $113 mln, $13.5-13.9 mln and $1.67-1.72, respectively. (There are no analyst estimates for JST)
08:31 GMT sees FY08 $3.15-3.35 vs $3.15 First Call consensus

08:30 GMT Authorizes $200 Million Share Repurchase Program

08:30 YHOO Yahoo’s stock price is so low that the co may not be able to fend off a takeover off - NY Post (20.01 ) -Update-

NY Post reports the co’s co-founders Jerry Yang and David Filo still don’t want to sell the struggling Internet co, but its stock price is so low that the duo may not be able to fend off a takeover offer without compromising their fiduciary duty to shareholders… The shares are down 35% from the co’s 52-week high of $34.08 per share in Oct and comes despite news of a cost-cutting plan that includes the elimination of about 700 jobs designed in part to prop up its stock price. Part of the reason for the negative reaction is because Wall Street is wondering when the restructuring and reorganizing at Yahoo is going to stop and the turnaround is going to begin. “Yahoo has an execution problem, not a structural problem, and whenever you have an execution problem there are a lot of smart people with a lot of money that think they can do better,” said UBS analyst Ben Schachter. “Each day Yahoo’s stock gets cheaper, it raises the interest among these people. Yang and Filo don’t want to sell until they’ve had a real chance to turn the business around. Where the stock is now, however, they might not have that option.” While no formal discussions are currently taking place, sources close to Yahoo said that private-equity cos have been aggressively reaching out since its stock started trading below $24. These sources said Yahoo! has little interest in selling to private equity. They added, however, that there is nervousness inside Yahoo that one of the strategic buyers that has kicked the tires on the co in the past - a list that includes AOL, T, CBS, CMCSA, MSFT, VIA.B and NWS.A - might make a move given its depressed stock price. “There are a lot of interested buyers standing around looking at Yahoo,” said one source close to the company. “If one of them gets the sense that another is ready to jump, they might move faster [to beat them to it].”
08:30 GMT prelim $0.62, ex items vs $0.61 First Call consensus; revs $326.7 mln vs $320.77 mln First Call consensus

08:30 FLWS prelim $0.29 vs $0.27 First Call consensus; revs $334.2 mln vs $352.29 mln First Call consensus

08:30 CSR China Security and Surveillance signs distribution agreement with LG Electronics of South Korea (16.00 )

Co announces that it has signed a distribution agreement with Shanghai LG Electronics, a unit of South Korean conglomerate LG Group. Under the agreement, for a three- year period beginning January 1, 2008, CSR will have the exclusive right to distribute in China, all CCTV security products and accessories manufactured by LG. As part of the agreement LG will provide after sales support for all of its products sold under the agreement.
08:30 ECONX Initial Claims 301K vs 320K consensus, prior revised to 302K from 301K

08:29 SCA Security Capital Assurance: Elects not to raise hard capital - Keefe, Brutette & Woods (3.79 )

Keefe, Brutette & Woods notes that last night, SCA announced that it has determined not to raise new hard capital at the present time due to market conditions. Firm believes that this was a tough, but absolutely correct decision for shareholders given the embedded value they see at the co and what firm views as too great of a cost in current market conditions to maintain the triple-A ratings.
08:29 COF Capital One tgt raised to $56 from $52 at Calyon (44.20 ) -Update-

Calyon raises their tgt on COF to $56from $52 noting last night, COF reported 4Q07 GAAP EPS of $0.60 per share ($0.85 on an operating basis), in line with its recent pre-announcement. The firm says quarterly under-performance was a result of a $1.9 bln provision, a one-time $0.25 loss related to the shuttering of GreenPoint, and $140 mln in pre-tax legal charges related to Visa. Despite current sentiment, the firm says COF has a strong balance sheet, competitive yield, and attractive geographic coverage. Should the economy reach an identifiable bottom, and COF’s shares remain depressed, acquirers could emerge. If not the firm says, the co should begin to perform as a cohesive unit in 2009, producing improved earnings growth.
08:29 SCANX Early pre-market gappers

Gapping up: MBRK +100.0%, FFIV +17.4%, NVEC +16.1%, TRMB +15.1%, ADLR +13.3%, SYMC +9.2%, PLXS +8.4%, PLCM +7.7%, CBST +7.5%, QCOM +7.3%, LSI +7.2%, POT +6.5%, MFE +6.5%, WDC +6.3%, SBCF + 4.9%, NOK + 4.8%, CTXS + 4.4%, CS + 4.1%, PRXL +3.5%, MOS +3.5%, BCS +3.4%, COF +2.9%, SANM +2.8%, SHRP +2.6%, ABK +2.2%, PSSI +2.1%, BXS +1.5%, WSTL +1.3%, QLGC +1.3%, NE +1.3%… Gapping down: FTK -16.3%, SPWR -12.5%, SOLF -10.8%, SCA -9.5%, BCRX -9.3%, THQI -8.4%, HLYS -8.3%, MRCY -8.3%, CY -7.2%, LINC -6.2%, FSLR -5.9%, EBAY -5.6%, KELYA -5.5%, WMAR -5.0%, LCC -4.9%, VARI -4.7%, CNS -4.4%, CBE -4.3%, DGII -4.1%, KNX -4.1%, XL -4.1%, ALK -4.0%, HXL -3.7%, BPFH -3.5%, RKT -3.4%, ISIL -3.1%, MOLX -3.1%, PTV -2.9%, WRLD -2.9%, MTSC -2.8%, AVT -2.6%, AVCT -2.6%, CHIC -2.4%, EXR -2.2%, GILD -1.8%, SOV -1.8%, HSY -1.7%, CAVM -1.7%, SRDX -1.7%.
08:27 WDC Western Digital: Posts another record quarter with upside EPS and guides well above consensus outlook for March - Brean Murray (24.94 )

Brean Murray notes WDC reported another record quarter and beat the consensus EPS forecast by $0.31 in 2QFY08 (Dec). Western Digital’s technology leadership in the mobile space continues to benefit the co, as mobile shipments sequentially grew 47% to 8.7 mln units. Komag became accretive during the quarter and boosted margins by 80 bps. The firm believes Komag and its new products can boost margins by another 300 bps by the end of FY08. The firm provided guidance for the March quarter with typical seasonal weakness. However, WDC’s EPS guidance range for the March quarter exceeded the consensus forecast going into the call by $0.05-0.11. Due to macroeconomic concerns, the stock continues to be modestly valued by investors.
08:26 Weekly Initial Jobless Claims - Data due out at 8:30ET

08:26 Huge drop in interest rates could reignite investor confidence in previously planned takeovers - NY Post

NY Post reports a huge drop in interest rates tied to the debt on leveraged buyouts could re-ignite investor confidence that several planned takeovers - previously thought to be on the rocks - now have a better chance of closing on their original terms… The move has already cut nearly $300 mln off buyout target CCU’s annual interest payments, according to several analysts… The difference between the bid and asking price of Clear Channel is still a whopping $7 a share even though the deal is likely to go through. Investors are even more concerned about Blackstone Group’s $8 bln deal for credit card processor ADS. ADS’ stock price, which has fluctuated wildly in the last few days, is still more than 20% below the $81.75 a share Blackstone agreed to pay last year. But the drop in Libor could save Alliance Data up to $125 mln a year in interest costs, which could make up for any decline in the business, analysts said. “The cost of funding these deals is actually going down and that will make these businesses generate more cash than they would have otherwise,” said one investor. “It could mitigate any concern that the buyers want to walk away.” The $47 bln buyout of Canadian telecom co BCE, the biggest LBO of all time, is also looking better after a steep drop in interest rates. “If you look at what the Libor savings are, a lot of deals could be looking better, particularly if you have a company that is somewhat recession proof,” said one attorney who has worked on several pending buyouts.
08:26 WBS Webster Financial reports Q4 EPS of ($0.16) may not compare to ($0.14) consensus; co reports revs of $170.7 mln vs $185.7 mln consensus (29.75 )

08:25 AVCT Avocent tgt cut to $22 from $27 at ThinkEquity (15.05 )

ThinkEquity cuts their tgt to $22 from $27 noting Avocent’s CEO, John Cooper, is retiring effective March 31. The firm believes an insider is the likely successor, understanding that Avocent is conducting a nationwide search. The firm also notes AVCT announced 4Q07 results with better profitability than expected, led by LANDesk and international branded product sales, which bucked the softness in U.S. branded products. The firm says they cut their tgt on concerns over the CEO transition.
08:24 THQI THQ Inc downgraded to Hold at Kaufman- tgt $26 (25.10 )

Kaufman downgrades THQI to Hold from Buy and cuts thier tgt to $26 from $30 noting THQ guided to lower-than-expected results for the remainder of fiscal 2008.
08:23 BONDX Bond Watch: Tentatively Higher

The market is lightly bid in the face of a global sell off in bonds as investors mustered up the stomach to nibble at some riskier assets overnight. Yesterday’s talk of a bailout for bond insurers found some wings but mostly the markets were long overdue for a retracement. SocGen is taking a hit after disclosing fraudulent trades courtesy of a rogue trader. The 2-10-yr yield spread is holding at comparatively steep 145.5 but just off its steepest levels overnight as rate cut. Bond prices in the EuroZone were slammed as trade shifted attention to equities & Ifo data in Germany were better-than expected. In Japan, bonds were hit on the goodwill vibe coming off equities. Treasuries have some data to work with today but nothing overly market moving unless an outlier hits. Treasury sells $8B of 20-yr TIPS. Today’s drivers will likely be equity gyrations once again while technicals have evened out a little but with more room on the downside should momentum get behind this overbought correction. The dollar is off on the euro, little changed on the yen, with the euro getting a boost on further tough rate talk out of ECB officials. Gold is slipping, but holding near recent highs as further Fed cuts will keep the buck off, with spot now 898.23 (+7.91). Crude has gained in corrective action following recent sell-off, now 88.37 (+1.38). Data has initial jobless claims (8:30) & existing home sales (10), while ex-Fed head Greenspan stays out on the lecture circuit, hitting late (14:30). The euro is at 1.4661 & the yen is at 106.5500 while the 10-yr is +10/32 yielding 3.561%.
08:23 THQI THQ Inc: Changes in product strategy reduce near-term guidance; F2009 appear intact - Lazard (25.10 )

Lazard notes THQI announced preliminary results for F3Q with revs of $509 mln, above guidance and firm’s est of $491 mln, on stronger than expected sales of WWE Smackdown and MX vs. ATV. Revised EPS guidance of $0.23 includes $20 mln of charges related to the amortization of underperforming titles (Stuntman, Juiced, and Ratatouille), as well as $27 mln related to the cancellation of several titles, including Frontlines on the PS3, Destroy All Humans on the PS2, and two previously unannounced titles. The company has also elected to cease further development of the Juiced and Stuntman franchises. Excluding the non-cash charges, firm estS that F3Q EPS was slightly above original guidance of $0.67.
08:16 STV China Digital TV: Latest government initiatives set to accelerate digital T.V. rollout in China - Susquehanna (23.00 )

08:14 DVD Dover Motorsports reports EPS in-line, beats on revs (6.82 )

Reports Q4 (Dec) loss of $0.10 per share, in-line with the First Call consensus of ($0.10); revenues rose 12.7% year/year to $3.4 mln vs the $3 mln consensus. “The Co’s fourth quarter is a seasonally slow quarter and typically results in a loss. We only promoted one major event in the fourth quarter of both 2007 and 2006 — the NASCAR Busch Series race at Memphis Motorsports Park.”
08:14 NOC Northrop Grumman beats by $0.01, beats on revs; guides FY08 EPS in-line, revs in-line (78.32 )

Reports Q4 (Dec) earnings of $1.32 per share, $0.01 better than the First Call consensus of $1.31; revenues rose 10.1% year/year to $8.82 bln vs the $8.44 bln consensus. Co issues in-line guidance for FY08, sees EPS of $5.50-5.75 vs. $5.61 consensus; sees FY08 revs of approx $33 bln vs. $33.39 bln consensus.
08:13 ADLR Adolor: FDA Panel - POI a clear unmet need; Entereg safety remains questionable - Brean Murray (4.59 ) -Update-

Brean Murray views yesterday’s panel as a confirmation that opioid-induced post-operative ileus is an indication with a high unmet medical need. This is made clearer to firm considering that many FDA panelists were willing to overlook the risk of potential, life-threatening adverse events for what was deemed a marginal or modest clinical benefit by some panelists. Regardless of the panel’s vote, firm believes Entereg’s approval for POI will be contingent upon its safety given its marginal clinical benefit, and therefore do not necessarily expect outright approval. Entereg’s PDUFA date is set for Feb 10, 2008.
08:13 TEN Tenneco reports EPS in-line, revs in-line (22.42 )

Reports Q4 (Dec) earnings of $0.34 per share, in-line with the First Call consensus of $0.34. The co anticipates ongoing industry volatility in 2008. The co expects that North America industry OE production volumes will be lower, Europe OE volumes will remain relatively stable, and strong sales growth in expanding markets like China, India and Brazil will continue. In Q1, the co expects higher year-over-year revenues in North America given its market position and the anticipated benefit of incremental sales from new OE emission control business it launched in 2007, which will be at higher production levels compared to first quarter last year. In Europe, the co also expects to benefit from its strong position in Eastern Europe and Russia, where industry growth is predicted. The co estimates that its global original equipment revenues will be approx $5.5 bln in 2008 and $6.0 bln in 2009. Adjusted for substrate sales, original equipment value-added sales are estimated to be approx $3.7 bln in 2008 and $4.1 bln in 2009. The co expects the pricing environment for steel will increase gross steel costs year-over-year by up to $40 mln in 2008, which it anticipates fully offsetting through cost reductions, manufacturing efficiencies, material substitutions, low-cost country sourcing and customer recovery. As part of its five year strategic vision, the co projects it will achieve an average compounded annual OE revenue growth rate of 11% to 13% between 2008 and 2012, primarily driven by tightening emission control regulations globally.
08:13 DDE Dover Downs Gaming misses by $0.03, misses on revs (10.04 )

Reports Q4 (Dec) earnings of $0.17 per share, $0.03 worse than the First Call consensus of $0.20; revenues rose 1.2% year/year to $59.3 mln vs the $62.1 mln consensus.
08:12 OCLS Oculus Innovative Sciences announced that it was awarded damages in the amount of $6.6 million (4.04 )

Co announced that the U.S. District Court for the Northern District of California has awarded damages in the amount of $6.6 mln to Oculus Innovative Sciences and entered judgment against defendant Nofil Corporation, finding Nofil liable for breach of contract and misappropriation of Oculus’ intellectual property rights related to its Microcyn Technology.
08:11 USAK USA Truck misses by $0.09, reports revs in-line (11.86 )

Reports Q4 (Dec) loss of $0.05 per share, excluding non-recurring items, $0.09 worse than the First Call consensus of $0.04; revenues rose 11.7% year/year to $122.5 mln vs the $121.4 mln consensus.
08:11 KEI Keithley beats by $0.02, beats on revs; guides Q2 revs in-line (8.96 )

Reports Q1 (Dec) earnings of $0.05 per share, $0.02 better than the First Call consensus of $0.03; revenues fell 6.3% year/year to $38.4 mln vs the $36.3 mln consensus. Co issues in-line guidance for Q2, sees Q2 revs of 37-43 vs. $37.60 mln consensus. Results are expected to range from a slight loss to pre- tax earnings in the single digits as a percentage of net sales. The co expects new product development costs for Q2 of fiscal 2008 to increase slightly from the levels experienced during the first quarter of fiscal 2008. The co expects the effective tax rate for the remainder of fiscal 2008 to approximate the statutory rate, assuming U.S. Congress does not enact legislation to restore research and development credits.
08:11 DVD prelim ($0.10) vs ($0.10) First Call consensus; revs $3.413 mln vs $3.00 mln First Call consensus

08:11 DDE prelim $0.17 vs $0.20 First Call consensus; revs $59.3 mln vs $62.05 mln First Call consensus

08:09 ALK Alaska Air misses by $0.14, reports revs in-line (24.69 )

Reports Q4 (Dec) loss of $0.46 per share, excluding non-recurring items, $0.14 worse than the First Call consensus of ($0.32); revenues rose 8.0% year/year to $853.4 mln vs the $845.1 mln consensus. “It’s frustrating to report a fourth quarter adjusted loss in what has been a solid year relative to other carriers… The loss was driven primarily by skyrocketing fuel costs combined with fares that have not kept pace. However, our fleet transition, fuel hedging program and other efforts to reduce fuel consumption put us in an excellent position to compete in this difficult environment.”
08:09 TEN prelim $0.34 vs $0.34 First Call consensus; revs $1.57 bln vs $1.55 bln First Call consensus

08:09 CBE Cooper Industries beats by $0.01, beats on revs (45.68 )

Reports Q4 (Dec) earnings of $0.83 per share, $0.01 better than the First Call consensus of $0.82; revenues rose 15.1% year/year to $1.54 bln vs the $1.51 bln consensus. CBE sees Q1 EPS up 10-15%, with revs up 11-14%. CBE sees Y08 EPS up 10-15%, with revs up 10-13%. “For 2008, we expect EPS to increase 10 to 15%, with revenue gains in the range of 10 to 13% (including the MTL acquisition). For the first quarter of 2008, inclusive of acquisition integration costs and reorganization costs in the Tools segment, we expect earnings per share to increase 10 to 15 percent with revenue gains in the range of 11 to 14%.”
08:08 TCB TCF Financial: Credit deterioration to limit upside in FY08; tgt cut to $18; FY08 ests cut - FBR (19.15 )

Friedman Billings cuts their tgt on TCB to $18 from $21 and their FY08 EPS est by $0.19 to $1.65, reflecting higher provision expense and lower NIM expectations. While credit trends deteriorated in 4Q07, firm believes investors were likely expecting much greater deterioration in the context of TCB’s exposure to the increasingly stressed consumer, as deterioration in the national housing market and the general economy continued in 4Q07. While firm believes TCB won the credit expectation battle this quarter, they think the war is far from over and expect credit trends at TCB will more fully reflect the significant deterioration in market conditions within its footprint over the next year.
08:08 JNS Janus Capital beats by $0.01, beats on revs (25.49 )

Reports Q4 (Dec) earnings of $0.33 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.32; revenues rose 9.5% year/year to $311.5 mln vs the $303.1 mln consensus.
08:07 AVT Avnet beats by $0.04, beats on revs; guides Q3 EPS in-line, revs in-line (30.50 )

Reports Q2 (Dec) earnings of $0.89 per share, $0.04 better than the First Call consensus of $0.85; revenues rose 3.89% year/year to $4.75 bln vs the $4559.5 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.85-0.89 vs. $0.85 consensus; sees Q3 revs of $4.37-4.57 bln vs. $4.35 bln consensus. Q3 EPS guidance does not include the amortization of intangible assets or integration charges related to acquisitions that have closed or will close in the March quarter.
08:07 KEI sees Q2 revs $37-43 mln vs $37.60 mln First Call consensus

08:07 KEI prelim $0.05 vs $0.03 First Call consensus; revs $38.4 mln vs $36.27 mln First Call consensus

08:06 CY Cypress Semi misses by $0.04, misses on revs (22.20 )

Reports Q4 (Dec) earnings of $0.24 per share, excluding non-recurring items, $0.04 worse than the First Call consensus of $0.28; revenues fell 4.1% year/year to $431.2 mln vs the $439.1 mln consensus. Co reports Q4 gross margins of 35.1% vs 36.2% street expectation. “An industrywide consumer-segment slowdown late in the fourth quarter caused us to report an EPS of $0.24, just short of our EPS guidance range of $0.26 to $0.28. We expect normal seasonal, first-quarter softness in our core semiconductor business to be exacerbated by continued macroeconomic uncertainty. Nevertheless, we expect to achieve record consolidated revenue again in 2008.”
08:06 UNP Union Pacific beats by $0.09, reports revs in-line (117.01 )

Reports Q4 (Dec) earnings of $1.86 per share, $0.09 better than the First Call consensus of $1.77; revenues rose 5.9% year/year to $4.20 bln vs the $4.18 bln consensus.
08:06 LCC US Airways beats by $0.31, misses on revs (13.14 )

Reports Q4 (Dec) loss of $0.45 per share, excluding non-recurring items, $0.31 better than the First Call consensus of ($0.76); revenues fell 0.4% year/year to $2.78 bln vs the $2.82 bln consensus.
08:06 UST UST Inc beats by $0.01, beats on revs; guides FY08 EPS in-line (55.40 +0.19)

Reports Q4 (Dec) earnings of $0.95 per share, $0.01 better than the First Call consensus of $0.94; revenues rose 9.7% year/year to $532.9 mln vs the $517.8 mln consensus. Co issues in-line guidance for FY08, sees EPS of $3.60-3.70 vs. $3.69 consensus, and say are targeting for 2008, diluted earnings per share of $3.65.
08:05 RYN Rayonier beats by $0.05, misses on revs; expect full year 2008 earnings to be only slightly below 2007 (42.80 )

Reports Q4 (Dec) earnings of $0.45 per share, $0.05 better than the First Call consensus of $0.40; revenues fell 11.6% year/year to $290.4 mln vs the $301 mln consensus. “Even with the soft housing market negatively affecting timber prices and volumes, we expect full year 2008 earnings to be only slightly below 2007, and first quarter earnings to be comparable to first quarter of 2007, due to the diversity and balance of our three core businesses. We are well positioned to generate favorable results despite a challenging economic environment. Cash available for distribution is expected to remain strong, although somewhat below 2007.”
08:05 INSM Insmed: IPLEX appears to have been safe and well tolerated; The co received cost recovery of $5.2 mln (0.72 )

The co announces since early 2007, the EAP has grown to include 15 physicians and approximately 70 subjects have been enrolled into the program. Additional subjects continue to be enrolled into the program. IPLEX appears to have been safe and well tolerated in the subject population to date and no individuals have dropped out of the study for reasons related to IPLEX. The co received cost recovery of $5.2 mln for drug supplies for the full-year 2007.
08:05 DSL Downey Fincl: Earnings under pressure due to deteriorating housing market - FBR (29.53 )

Friedman Billings notes DSL reported a 4Q07 earnings loss of $3.90, below firm’s est of a loss of $0.15 and consensus of a loss of $0.06. Earnings were impacted by significantly higher loss provision and increasing operating expenses. NPAs increased to $1 bln from $423 mln in the prior quarter, and as long as NPAs increase at this pace, investors will not be able to quantify DSL’s losses. Until investors see improvement in credit trends, they expect the stock to trade at a 40% to 50% discount to book value. They believe it could take another four to six quarters until credit trends stabilize and investors can quantify banks’ credit losses. Firm cuts their FY08 EPS ests to a loss of $7.15 from zero on significantly higher loss provision.
08:05 GENR Genaera presents promising preclinical type 2 diabetes data for Trodusquemine (MSI-1436) at Keystone symposia (1.65 )

Co announces a poster presentation of preclinical data on trodusquemine (MSI-1436), Genaera’s drug candidate for the treatment of type 2 diabetes and obesity, during the Diabetes Mellitus, Insulin Action and Resistance Keystone Symposia. Genaera research scientists concluded that treatment with MSI-1436 leads to marked improvement in glucose tolerance and lowers plasma insulin levels in diet-induced obese mice and improves fasting blood glucose and glucose tolerance in hyperglycemic animal models, and that these effects are maintained over time.
08:04 AVT sees Q3 $0.85-0.89, ex items, vs $0.85 First Call consensus; sees revs $4.37-4.57 mln vs $4.35 bln First Call consensus

08:04 CTS CTS Corp announces agreement to caquire Tusonix, transaction to be accretive in year one and close by the end of January 2008 (9.69 +0.39)

The co announces it has reached a definitive agreement to acquire Tusonix, a privately held co, for $12.25 mln in cash. Tusonix is a designer and manufacturer of ceramic EMI/RFI (electromagnetic interference and radio frequency interference) filters, capacitor assemblies and related components, serving the military, industrial, instrumentation and telecom markets. EMI/RFI filters protect against electromagnetic noise. CTS expects the transaction to be accretive in year one and close by the end of January 2008. First year sales are estimated at approximately $15 mln to broadly distributed customers.
08:04 SPWR Sunpower beats by $0.02, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY08 EPS in-line, revs in-line (74.25 )

Reports Q4 (Dec) earnings of $0.39 per share, $0.02 better than the First Call consensus of $0.37; revenues fell 4.3% year/year to $224.3 mln vs the $220.6 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.33-0.36 vs. $0.38 consensus; sees Q1 revs of $230-250 mln vs. $250.22 mln consensus. Co issues in-line guidance for FY08, sees EPS of $2.00-2.10 vs. $2.06 consensus; sees FY08 revs of $1.2-1.3 bln vs. $1.24 bln consensus.
08:03 BRNC Bronco Drilling: Allis-Chalmers Energy to acquire Bronco Drilling Company for a combination of cash and stock for $16.33/share (13.41 )

Allis-Chalmers Energy (ALY) and Bronco Drilling Company (BRNC) announces that they have entered into a definitive merger agreement providing for the acquisition of Bronco Drilling by ALY. The merger agreement provides that at the effective time of the merger, stockholders of BRNC will receive merger consideration with an aggregate value of approx $437.8 mln, comprised of an aggregate of $280 mln in cash and ALY common stock having an aggregate value of approx $157.8 mln. The combined consideration totals $16.33 per share for Bronco Drilling. The transaction is expected to be strongly accretive to earnings per share of ALY.
08:03 SIRT Sirtris Pharma: Novel, Potent SIRT1 activator reduces fat, boosts endurance and improve insulin sensitivity (12.65 )

The co announces that one of its new chemical entities, which is structurally unrelated to and one thousand times more potent than resveratrol, reduces fat, boosts exercise endurance and improves insulin sensitivity in mice on a high-fat diet. The new data will show that mice on a high-fat diet treated with one of Sirtris’ new chemical entities remained lean while consuming the same number of calories as the untreated mice. Mice on the highest dose of the NCE had no weight gain over 13 weeks, and in exercise testing, ran over 1,600 meters before tiring, while the untreated mice tired at roughly 800 meters. The treated mice also showed lowered glucose, improved insulin sensitivity and increased energy expenditure due to an increase in the number and function of mitochondria, the powerhouses of the
08:03 NOC sees FY08 $5.50-5.75 vs $5.61 First Call consensus; sees revs $33 bln vs $33.39 bln First Call consensus

08:02 LCC prelim ($0.45), excluding items, vs ($0.76) First Call consensus; revs $2.78 mln vs $2.82 bln First Call consensus

08:02 AVT prelim $0.89 vs $0.85 First Call consensus; revs $4.75 mln vs $4.56 bln First Call consensus

08:02 NPO Enpro Industries acquires Chinese sealing products distributor and manufacturer (27.07 )

Co announces it has acquired the assets of Sinflex Sealing Technologies, a distributor and manufacturer of industrial sealing products, located in Shanghai, China. The operations will do business as Garlock Sealing Technologies and will be operated by Garlock Sealing Technologies, an EnPro Industries company. Sinflex has been Garlock’s principal distributor in China for over 10 years and in recent years has expanded its manufacturing operations. The transaction was completed for cash; terms were not disclosed.
08:02 SPWR sees Q1 $0.33-0.36 vs $0.38 First Call consensus; sees revs $230-250 mln vs $250.22 mln First Call consensus

08:02 NOC prelim $1.32 vs $1.31 First Call consensus; revs $8.8 bln vs $8.44 bln First Call consensus

08:02 CY prelim $0.24 vs $0.28 First Call consensus; revs $431.2 mln vs $439.08 mln First Call consensus

08:02 IBOC International Banc and Visa sign debit partnership agreement (20.49 )

The co and Visa announce it and Visa that the cos have signed a five-year partnership agreement that will result in IBC converting its entire debit portfolio to Visa-branded products. IBC Bank currently has approximately 450,000 debit cards in market in the United States.
08:02 ADLR Adolor: Divided panel; more FDA delays possible; commercial risks significant - FBR (4.59 )

Friedman Billings notes the panel agreed nearly unanimously that the Entereg POI efficacy data were clinically meaningful, but only agreed by a slim margin (9-6) that the benefits of short-term usage outweigh the safety risks. The panel also agreed (8-6, with one abstention) that there was a concern about cardiovascular safety in the short-term setting. The panel was nearly unanimous in its view that ADLR’s risk mgmt plan was inadequate. The PDUFA date for the filing is Feb 10, 2008. They believe that a best case scenario for Entereg is the FDA issuing another approvable letter and asking for a more detailed risk management plan, which firm believes would push the commercial launch out to late 2008 or early 2009.
08:01 SPWR sees FY08 $2.00-2.10 vs $2.06 First Call consensus; sees revs $1.2-1.3 bln vs $1.24 bln First Call consensus

08:01 CBE sees Q1 EPS up 10-15%, with revs up 11-14%

08:01 CLDA Clinical Data and Affymetrix announce marketing agreement for new drug metabolism service (18.67 )

CLDA and AFFX announce a marketing agreement for a new drug metabolism service using the Affymetrix Drug Metabolizing Enzymes and Transporter Early Access solution. Cogenics and Epidauros Biotechnologie AG, both subsidiaries of Clinical Data, will offer the DMET services on a global basis, with limited exclusivity in Europe. In a separate release issued today, AFFX announced the availability of its DMET Early Access Solution.
08:01 JNS prelim $0.33 vs $0.32 First Call consensus; revs $311.5 mln vs $303.06 mln First Call consensus

08:01 USAK prelim ($0.15) vs $0.04 First Call consensus; total revs $122.5 mln vs $121.35 mln First Call consensus

08:01 CBE sees Y08 EPS up 10-15%, with revs up 10-13%

08:01 SPWR prelim $0.39 vs $0.37 First Call consensus; revs $224.3 mln vs $220.63 mln First Call consensus

08:00 DMC Document Security Systems elects Robert Fagenson as Chairman of the Board of Directors (4.42 )

08:00 UNP prelim $1.86 vs $1.77 First Call consensus; revs $4.2 bln vs $4.18 bln First Call consensus

08:00 CMTL Comtech Telecom awarded $2.1 million contract for communications jamming high power amplifier systems (44.87 )

Co announces that its received a $2.1 mln contract for broadband, solid state, high power RF microwave amplifier systems from a major international OEM.
08:00 CBE prelim $0.83 vs $0.82 First Call consensus; revs $1.54 bln vs $1.51 bln First Call consensus

07:59 S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +18.3.

Futures suggest a higher start, but have dipped off their best levels. The buying interest is being fueled by the huge reversal on Wednesday, strong gains in European stock markets, and optimism that there will be some sort of bail out for bond insurers. It is being reported that China’s fourth quarter GDP grew 11.2%, which is also helping sentiment. On the economic front, the weekly jobless claims will be released at 8:30 ET and December existing home sales will be released at 10:00 ET.
07:59 UST sees FY08 $3.60-3.70 vs $3.69 First Call consensus

07:58 UST prelim $0.95, ex items vs $0.94 First Call consensus; revs $532.9 mln vs $517.76 mln First Call consensus

07:57 PNRA Panera Bread: Shamrock Activist Value Fund amends 13D; proposes that an executive officer of S.C.A be added to the Board of Directors of the co (37.15 )

07:57 IP Intl Paper upgraded to Buy from Hold at Soleil- tgt $40, based on valuation (30.95 )

07:57 TMA Thornburg Mortg upgrade details (10.03 ) -Update-

As mentioned at 7:21, Citigroup upgraded TMA to Hold from Sell and raised their tgt to $9.50 from $7, as they see less downside in the shares due to 1) capital raising to shore up the balance sheet, 2) aggressive Fed easing environment and 3) potential gov’t initiatives to try and stabilize the residential mortgage/housing market. While they remain cautious on the outlook for the residential mortgage market and don’t see much upside for the stock near-term, they now see less downside in TMA’s shares.
07:56 Bypasses outshine stents in study - WSJ

WSJ reports patients with multiple clogged arteries are better off getting bypass surgery than stents, a study found. The analysis, published in the New England Journal of Medicine, isn’t likely to settle the dispute between cardiac surgeons, who perform bypasses, and the interventional cardiologists who implant stents. But it gives further ammunition to those who argue that stents — metal scaffolds that keep arteries propped open — are overused. Both procedures fall under the umbrella of revascularization — attempts to relieve chest pain by opening up arteries clogged by heart disease. In the most severe cases, revascularization has also been shown to reduce heart attacks and deaths. The study looked at the newest kind of stents, those coated with drugs to keep arteries open, made by JNJ and BSX in the U.S. Previous studies saw similar results with older, bare stents.
07:56 BMY Bristol-Myers: Hearing upgraded to neutral from sell at tier 1 firm (22.59 )

07:56 SEPR Sepracor: Hearing downgraded to sell from neutral at tier 1 firm (28.92 )

07:55 QCOM Qualcomm: Color on quarter (36..63 )

Thomas Weisel says they went into QCOM’s December quarter (F1Q0 earnings with a positive bias. Given the earlier positive pre-announcement, they did not expect any real surprises for F1Q08. Instead, in their view, QCOM’s positive fundamentals would be reflected in healthy guidance, driven by strong demand for CDMA and WCDMA handsets in both developed and emerging markets. For 2Q08, management provided a healthy outlook, guiding revenues flat to up about 4% and an EPS range of $0.50-0.52, which is within consensus expectations. (2) For FY08, management slightly increased revenue guidance to $9.6-10.0bn and reaffirmed EPS guidance of $2.01-2.07. Revenue expectations are based upon solid CY08 guidance for CDMA plus WCDMA handsets, which imply 28-35% unit growth… Lehman says post close, QCOM delivered Dec Q results broadly in line with Street ests. While March EPS guide tweaked to reflect $0.03 in BRCM injunction impact (for year), FY08 guide reiterated & remains conservative, in firm’s view. With fundamentals solid, chip units impressive, and possible Nokia/legal progress in CY08, they see value at current levels (16x CY08 of $2.15 ex Nokia) given attractive sum of parts. Mgmt confirms `continues to look seriously` at structural options.36.63
07:55 RRC Range Resources upgraded to Outperform from Market Perform at BMO Capital (46.26 )

07:52 EL Estee Lauder, Allergan set product deal - WSJ (41.09 )

WSJ reports coming this fall to certain doctors’ offices: A new upscale skin-care line from Estee Lauder’s Clinique Laboratories and Botox-maker AGN that won’t be available from retailers and represents the next step in the blending of cosmetics and aesthetic medicine. Today the cos are set to announce a partnership that will combine Clinique’s product-formulation expertise with Allergan’s clout among dermatologists, plastic surgeons and other doctors specializing in aesthetic treatments. The products will be sold exclusively through physicians, a strategy reflecting the increasing importance of doctors’ offices as retail space.
07:50 MFE McAfee: Upgrade details (30.04 )

As mentioned at 7:12, Bear Stearns upgraded MFE to Outperform from Peer Perfor.m The upgrade reflects their belief in MFE’s product strategy, its new sales leadership, a reassessment of OM leverage, accretion from a $500 mln buyback and its relative valuation. The firm also believes that security software spending remains a high priority within IT budgets for ‘08; CHKP’s and SYMC’s strong Dec results & solid ‘08 outlook give them incremental comfort in their positive view.
07:49 NNDS NDS Group upgraded to Top Pick from Outperform at RBC (44.01 )

07:49 Citigroup and Morgan Stanley embrace taxman’s loophole - WSJ

WSJ reports the global investors who plugged the leaks in the balance sheets of Wall Street may have got good deals. One party that looks like a loser: the U.S. Treasury. Both C and MS used a financing structure that satisfies bank regulators concerned about their capital while also convincing federal-tax authorities that the interest payments they make to investors are actually tax-deductible interest on debt. Citigroup, which used this method to raise $7.5 bln from the Abu Dhabi Investment Authority in Nov, likely will save about $500 mln on its U.S. taxes over nearly three years. Morgan Stanley could save roughly $300 mln in taxes over 2.5 years, thanks to the way it structured its mid-Dec deal to raise $5.5 bln from China Investment. The banks aren’t doing anything improper, but merely taking advantage of a controversial 2003 Internal Revenue Service ruling that blessed the tax benefits of such deals. In recent years, numerous cos have raised money using these so-called hybrid structures, with nicknames like “Feline Prides,” “Peps,” and “Upper DECS.”
07:49 CLMS Calamos Asset downgraded to Neutral from Buy at Merrill (21.28 )

07:48 SYMC Symantec: Color on quarter (15.26 )

Friedman Billings notes SYMC reported a very strong Dec quarter across the board, beating firm’s and the Street’s expectations for rev, EPS, deferred rev, and cash flow. While the quarter was rosy and builds on positive business trends seen over the past few quarters, the focus this morning will also be around the co’s strong guidance for the March quarter, which was above the Street and thus should calm investors’ nerves on the name in the near term. Fundamentally speaking, SYMC is seeing strong deal activity on both the enterprise and consumer fronts, which should lead to balanced growth over the coming quarters, in firm’s opinion… Lehman notes that SYMC reversed the negative bookings trend of the past two quarters, Symantec delivered solid 3Q08 results with non-GAAP revenue and EPS of $1.53 billion and $0.33, driven by international growth, improved sales execution and seasonal strength. Bookings increased 15% y/y vs. an expected decline of 1%. Firm believes the results and positive outlook demonstrate that Symantec may finally have bottomed from a fundamental standpoint. TGiven the apparent positive turn in the business, firm believes shares are likely to bounce this morning following the sharp macro-driven selloff over the past few days… Jefferies notes they sees several catalysts for SYMC including several new product cycles, buybacks, improvement in the Americas business, and an attractive valuation.
07:48 GWW WW Grainger upgraded to Buy from Neutral at Merrill (78.22 )

07:48 ITWO i2 Tech issues downside Q4 rev guidance (12.52 )

Co sees Q4 revs of $63-64 mln vs $68.6 mln consensus; co sees GAAP EPS of $0.18-0.20 may not be comparable to $0.33 consensus. Co sees Q4 total bookings of $81-82 mln.
07:47 LYTS LSI Industries misses by $0.02, misses on revs (12.58 )

Reports Q2 (Dec) earnings of $0.22 per share, $0.02 worse than the First Call consensus of $0.24; revenues rose 3.0% year/year to $84.1 mln vs the $85.9 mln consensus. Co stated, “the balance of fiscal 2008 will not produce as favorable operating results as the same period of the prior fiscal year. However, we are poised to achieve significant growth in fiscal 2009 and beyond. We have the products, the technologies, the market position, and the balance sheet to look forward with confidence.”
07:47 JNY Jones Apparel upgraded to Neutral from Sell at Merrill (15.59 )

07:46 LIZ Liz Claiborne upgraded to Buy from Neutral at Merrill (20.85 )

07:46 CNBC Analyst discusses rating agencies look at Bond Insurers

Sources are saying rating agencies (Moody’s and S&P) doing an in-depth self examination; seeing some interesting findings- see massive fraud in mortgage lenders; says mortgage brokers ‘made up stuff’; says recovering $0.30-0.40 on the $1 on foreclosures; says that sources at ratings agencies admitting they missed the boat and should have been questioning the CDOs; sources believe Moody’s and S&P have not downgraded MBI or ABK, the reason why they have not done it is they are awaiting for the alleged bail out; they know if they downgrade them it could be a death spiral (or at best another leg down).
07:46 LYTS prelim $0.22 vs $0.24 First Call consensus; revs $84.06 mln vs $85.93 mln First Call consensus

07:46 GBL Gabelli Asset Mgmt downgraded to Sell from Neutral at Merrill (60.29 )

07:45 GOOG Google: Hearing downgraded to Hold at Stanford (548.62 ) -Update-

07:44 ZILG Zilog: In its 8-K, discloses it has sent a letter to Universal Electronics in reponse to the 13D filed on 1/22 (3.61 +0.49)

In its 8-K, the co discloses that it has sent a leter to Universal Electronics… the co said “The co has received your letter providing an extension of your offer letter dated January 11, 2008 from January 21, 2008 until 5 P.M. on January 29, 2008. As we discussed on the phone we are carefully evaluating your proposal with the assistance of our financial and legal advisors. The co does not anticipate being in a position to respond to your offer prior to February 1, 2008. Unless we hear otherwise from you, we will assume that your offer will continue in full force and effect until 5 P.M. Pacific Time on February 1, 2008. “
07:43 IKN IKON Office beats by $0.01, reports revs in-line; guides Q2 EPS below consensus; guides FY08 EPS in-line (9.17 )

Reports Q1 (Dec) earnings of $0.17 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.16; revenues fell 1.0% year/year to $998 mln vs the $997.3 mln consensus. Co issues downside guidance for Q2, sees EPS of $0.16-0.19 vs. $0.24 consensus. Co issues in-line guidance for FY08, sees EPS of $0.92-0.98 vs. $0.98 consensus.
07:43 ESI ITT Educational beats by $0.03, misses on revs; guides FY08 EPS above consensus (72.54 )

Reports Q4 (Dec) earnings of $1.20 per share, $0.03 better than the First Call consensus of $1.17; revenues rose 11.7% year/year to $230.4 mln vs the $237.6 mln consensus. Co reiterates FY08 EPS gudiance of $4.50-4.60 which is above the $4.47 consensus. Co also reports that new student enrollment in Q4 increased 13.1% to 11,542. Total student enrollment increased 13.1% to 53,027 as of Dec 31, 2007.
07:43 MNRO Monro Muffler beats by $0.06, reports revs in-line; guides FY08 EPS above consensus (17.04 )

Reports Q3 (Dec) earnings of $0.27 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.21; revenues rose 8.4% year/year to $112.5 mln vs the $112.7 mln consensus. Co expects a comparable store sales increase in Q4 in the range of 1%-3%; cautious about the remainder of fiscal year 2008. Co issues upside guidance for FY08, sees EPS of $1.06-1.08, excluding non-recurring items, vs. $1.02 consensus.
07:43 T AT&T reports EPS in-line, revs in-line, reaffirms 2008 outlook (36.69 )

Reports Q4 (Dec) earnings of $0.71 per share, in-line with the First Call consensus of $0.71; revenues rose 91.0% year/year to $30.35 bln vs the $30.55 bln consensus. The co also reaffirmed its 2008 outlook for double-digit growth in adjusted EPS. The co also reported a net gain of 2.7 mln wireless subscribers in Q4. As mentioned on its Dec 11 2007 conference call the co also expects positive growth in enterprise revenues throughout 2008 with line of sight to mid-single-digit enterprise revenue growth by 2010, 2008 free cash flow in the $16 billion to $17 billion range. The co also reaffirms positive regional consumer revenue growth in 2008 and beyond driven by video, broadband and converged services, and continued mid-single-digit growth in regional business revenues.
07:42 FBR discusses possible bailout of the bond insurers

Friedman Billings notes that talk of an orchestrated bailout of the bond insurers has increased in the past two days, with the New York Insurance Superintendent leading the campaign. While the possible intervention is a clear positive for the industry, as it indicates that regulators and Wall Street view the industry as too critical to fail, they think hurdles likely remain in hammering out a deal. They note that the New York Insurance Superintendant, with no direct oversight of investment banks, needs to convince all parties to pony up their share of a bailout. Additionally, they say many investment banks have their own capital shortfalls to worry about. These are likely surmountable problems, as the implications for further stress at the monolines would have negative reprecussions at the banks. (MBI, ABK, PMI)
07:41 PRICE Filings, Offerings, Pricings and IPOs

Pricings: Orexigen Therapeutics (OREX 11.41) prices a 7 mln share common stock offering at $11/share… Solarfun Power (SOLF 16.81) prices a 6 mln share ADS offering at $15/ADS… Annaly Mortgage (NLY 19.67) prices a 51 mln share common stock offering at $19.25/share.
07:41 COL Rockwell Collins beats by $0.02, reports revs in-line; guides FY08 EPS in-line, revs below consensus (58.48 )

Reports Q1 (Dec) earnings of $0.93 per share, $0.02 better than the First Call consensus of $0.91; revenues rose 12.0% year/year to $1.11 bln vs the $1.1 bln consensus. Co issues mixed guidance for FY08, sees EPS of $3.85-$4.00 (vs. $3.94 consensus), up from previous range of $3.80-$3.95; sees FY08 revs of $4.75 bln (vs. $4.81 bln consensus), at the top end of the previously disclosed range of $4.7-$4.75 bln.
07:41 IONA IONA Tech beats by $0.04, reports revs in-line; guides FY08 revs above consensus (2.21 )

Reports Q4 (Dec) earnings of $0.01 per share, ex items, $0.04 better than the First Call consensus of ($0.03); revenues fell 20.6% year/year to $18.1 mln vs the $18 mln consensus. Co issues upside guidance for FY08, sees FY08 revs of $80-85 vs. $76.77 mln consensus.
07:41 EBAY eBay: Color on quarter (28.94 +1.81)

Thomas Weisel notes EBAY reported 4Q07 rev of $2.18 bln (up 27% y/y) vs. firm’s est of $2.15 bln (vs. consensus of $2.14 bln). Currency and acquisitions had a positive impact in the quarter suggesting organic, currency neutral growth of 18%. All three division delivered higher rev relative to firm’s expectations. Besides the higher revs, EBAY had lower sales and marketing expenses and cost of sales relative to their expectations and therefore recorded a higher pro forma operating income margin of 34.6%. Firm notes insertion fees are slated to decline, while final value fees (FVF) are expected to increase. Firm suspect the highly conservative 1Q guidance, which at the high end is calling for organic, currency neutral growth of 8%, is indicative of management’s uncertainty over the impact from these pricing changes… Deutsche states that while 4Q results were slightly ahead of expectations, they note that ‘08 operating profit growth calls for 9% Y/Y (vs. 29% in 2007). Moreover, the major themes with eBay including: continued weakening underlying metrics, shift from listing fees to commissions and the impact on seller behavior and margins. They believe eBay still needs to lower its commission structure to compete vs. Amazon and spend in advertising to fuel traffic growth and demand. Firm believes the structural issues may take years to overcome, given the economy, competition and financial impact.
07:40 KELYA Kelly Services beats by $0.05, beats on revs; guides Q1 EPS in-line (17.18 )

Reports Q4 (Dec) earnings of $0.54 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.49; revenues rose 5.5% year/year to $1.5 bln vs the $1.45 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.19-0.23 vs. $0.23 consensus.
07:40 WIRES On The Wires

Gushan Environmental Energy (GU) announces that its Beijing plant has commenced production, adding 50k tons to the co’s annual biodiesel production capacity… CDC Games (CHINA) announces promotion of John Huen to Chief Operating Officer… EMCOR Group (EME) announces that its subsidiary Poole & Kent Company of Florida has been awarded a contract to construct, equip and performance test a 14.5 mln gallon-per-day nanofiltration water facility in Jupiter, Florida. The value of the contract is $36.6 mln.
07:39 TDY Teledyne Tech beats by $0.05, misses on revs; guides Q1 EPS in-line; guides FY08 EPS in-line (50.00 )

Reports Q4 (Dec) earnings of $0.73 per share, $0.05 better than the First Call consensus of $0.68; revenues rose 9.3% year/year to $427.5 mln vs the $432.7 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.63-0.66 vs. $0.66 consensus. Co issues in-line guidance for FY08, sees EPS of $2.86-2.94 vs. $2.94 consensus.
07:39 KMB Kimberly-Clark reports EPS in-line, beats on revs; guides Q1 EPS below consensus; guides FY08 EPS in-line (64.44 )

Reports Q4 (Dec) earnings of $1.11 per share, excluding non-recurring items, in-line with the First Call consensus of $1.11; revenues rose 10.5% year/year to $4.76 bln vs the $4.65 bln consensus. Co issues downside guidance for Q1, sees EPS of $1.05-1.08 vs. $1.10 consensus. Co issues in-line guidance for FY08, sees EPS of $4.45-4.60 vs. $4.60 consensus.
07:39 AAPL Apple: In Mossberg column, WSJ reviews MacBook Air (139.07 -16.57) -Update-

WSJ reports the co introduced a beautiful, amazingly thin computer, but one whose unusual trade-offs may turn off some frequent travelers. The computer’s thickest point measures just three-quarters of an inch, which is slimmer than the thinnest point on some other subnotebooks. And it employs some innovative software features, such as fingertip gestures for its touchpad that are similar to those on Apple’s iPhone. It’s impossible to convey in words just how pleasing and surprising this computer feels in the hand. It’s so svelte when closed that it’s a real shock to discover the big screen and keyboard inside. But there’s a price for this laptop’s daring design: Apple had to give up some features road warriors consider standard in a subnotebook, and certain of these omissions are radical. Chief among them is the lack of a removable battery… So, while the MacBook Air will be a perfect choice for some travelers, the author can’t recommend it for all… there are those trade-offs. The sealed-in battery means you can’t carry a spare in case you run out of juice, and you have to bring it to a dealer when you need a new one. There’s no built-in DVD drive. The thin case can’t accommodate a larger internal hard disk. And the machine omits many common ports and connectors. Also, the MacBook Air has only three connectors: a headphone jack, a single USB port and a port for connecting an external monitor. That single USB port is a problem, because so many peripherals use USB. You can buy a tiny, cheap USB hub that adds three more ports, but that’s yet another item to carry… If you value thinness, and a large screen and keyboard in a subnotebook, and don’t watch DVDs on planes or require spare batteries, the MacBook Air might be just the ticket. But if you rely on spare batteries, expect the usual array of ports, or like to play DVDs on planes, this isn’t the computer to buy.
07:39 SPWR Sunpower: ThinkEquity expects strong 4Q07 and renewed shareholder interests (75.00 )

ThinkEquity says despite recent market volatility, a sell-off in alternative energy stocks, and major declines in solar PV stocks, they are reiterating ratings and price targets for the solar PV stocks. The firm’s reasons for doing so include: 1) a $60-80 plus crude oil price deck outlook 2) expectations for strong solar PV earnings power in 4Q07 through 1H08 and, 3) the increasing momentum in the ‘green’ movement. Firm expects SPWR earnings (scheduled for this morning) to reignite buying interest in the space.
07:38 RESP Respironics reports EPS in-line, beats on revs; note, co previously announced it is being acquired (65.16 )

Reports Q2 (Dec) earnings of $0.48 per share, excluding non-recurring items, in-line with the First Call consensus of $0.48; revenues rose 18.8% year/year to $343.1 mln vs the $332.1 mln consensus. Note, co previously announced it is being acquired by Royal Philips Electronics
07:38 FCS Fairchild Semi beats by $0.04, reports revs in-line (12.82 )

Reports Q4 (Dec) earnings of $0.33 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.29; revenues rose 3.3% year/year to $431.9 mln vs the $435.1 mln consensus. “We expect first quarter revenue to be down 2 percent to 6 percent and gross margin to be approximately 100 to 150 basis points lower sequentially due to lower factory loadings and changes in variable compensation accruals.”
07:37 AT&T’s reports a net gain of 2.7 mln wireless subscribers in Q4

07:37 T reaffirms 2008 outlook for double-digit growth in adjusted EPS

07:37 MNRO expects a comparable store sales increase in Q4 in the range of 1%-3%; cautious about the remainder of fiscal year 2008

07:37 T prelim $0.71 vs $0.71 First Call consensus; revs $30.35 bln vs $30.55 bln First Call consensus

07:36 VIGN Vignette misses by $0.01, beats on revs; guides Q1 EPS in-line, revs in-line (14.88 )

Reports Q4 (Dec) earnings of $0.28 per share, $0.01 worse than the First Call consensus of $0.29; revenues rose 0.2% year/year to $52.7 mln vs the $51.7 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.13-0.21 vs. $0.19 consensus; sees Q1 revs of $45-50 mln vs. $46.00 mln consensus.
07:36 MNRO sees FY08 $1.00-1.02, ex-tems, vs $1.02 First Call consensus

07:36 CMCO Columbus McKinnon beats by $0.07, beats on revs (24.99 )

Reports Q3 (Dec) earnings of $0.53 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.46; revenues rose 9.3% year/year to $155.2 mln vs the $148.4 mln consensus.
07:36 EP guides FY08 EPS of $1.00-1.10 vs $1.13 First Call consensus

07:35 XNN Xenonics expects to be profitable in Q1 on revs of $3.4 mln - single analyst estimate is for EPS of $0.01 and revs of $3.40 mln (1.41 )

Co expects to be profitable in Q1 on revs of $3.4 mln - single analyst estimate is for EPS of $0.01 and revs of $3.40 mln. Co expects their profitability to continue throughout the year, and has no plans to raise money in the foreseeable future.
07:35 RESP prelim $0.48 vs $0.48 First Call consensus; revs $343.1 mln vs $332.1 mln First Call consensus

07:34 EOG EOG Resources upgraded to Buy from Hold at Citigroup (82.66 )

07:34 VIGN sees Q1 $0.13-0.21 vs $0.19 First Call consensus; sees revs $45-50 mln vs $46.00 mln First Call consensus

07:33 VIGN prelim $0.28 vs $0.29 First Call consensus; revs $52.7 mln vs $51.65 mln First Call consensus

07:33 MNRO prelim $0.25 vs $0.21 First Call consensus; revs $112.5 mln vs $112.72 mln First Call consensus

07:33 IONA sees FY08 revs of $80-85 mln vs $76.77 mln First Call consensus

07:33 KELYA sees Q1 $0.19-0.23 ex items vs $0.23 First Call consensus

07:33 FULT Fulton Fincl: 4Q07 results; mortgage woes appear over - Ferris, Baker Watts (11.99 )

Ferris, Baker Watts notes FULT reported 4Q07 EPS of $0.22 vs. $0.27 in the year-prior quarter.Most significantly, in 4Q07 the co realized minimal expenses related to its subprime mortgage unit (which is now closed). The costs this quarter were the result of professional fees associated with further analysis of the situation by outside counsel. The co booked $24.9 mln in charges related to loan repurchases through the first nine months of 2007. The lack of a charge in 4Q07 implies to firm that the co is well on its way to final resolution of this matter; however, further reserves may still be booked. Firm reduces their 2008 EPS estimate from $1.05 to $0.95. They introduce their 2009 EPS est of $1.10.
07:33 TDY sees FY08 $2.86-2.94 vs $2.94 First Call consensus

07:33 FCS sees Q1 revs down 2-6%

07:32 KELYA prelim $0.54, ex items vs $0.49 First Call consensus; revs $1.5 bln vs $1.45 bln First Call consensus

07:32 TDY sees Q1 $0.63-0.66 vs $0.66 First Call consensus

07:32 GERN Geron and Sienna enter into license agreement for cancer diagnostics (4.76 )

Geron (GERN) and Sienna Cancer Diagnostics have signed a license agreement allowing Sienna access to critical granted patents and know-how related to the detection or measurement of telomerase activity. Under the terms of the license, Sienna gains worldwide exclusive rights within a defined field to Geron-controlled intellectual property to detect telomerase activity for the cancer in vitro diagnostics market. In consideration for the license, Geron received a significant equity interest in Sienna and is entitled to receive royalties on future product sales.
07:32 FCS prelim $0.33 vs $0.29 First Call consensus; revs $431.9 mln vs $435.10 mln First Call consensus

07:32 IONA reports Q4 EPS of $0.01 vs ($0.03) First Call consensus; revs $18.095 mln vs $17.99 mln First Call consensus

07:32 FCX Freeport-McMoRan: Friedman Billings believes stock is oversold (77.30 )

Friedman Billings notes the weakness in FCX was due to concerns over 4Q07 results and ongoing macroeconomic concerns. After prior-quarter rev adjustments, they believe that 4Q07 operating results were in line with expectations. Although macroeconomic concerns are valid, firm believes that the stock offers compelling value at these levels for a trade back to $95/share in the coming few months. With a larger dividend, a 5% stock buyback now in place (with cash build capacity that could increase the buyback size further), strong free cash generation, and an attractive valuation, FCX offers a good entry point despite ongoing macro concerns, in their opinion.
07:32 ESI sees FY08 $4.50-4.60 vs $4.47 First Call consensus

07:32 TDY prelim $0.73 vs $0.68 First Call consensus; revs $427.5 mln vs $432.71 mln First Call consensus

07:31 STEM StemCells enters research collaboration with Casey Eye Institute (1.02 )

Co announces that it has entered into a research collaboration with the Oregon Health & Science University Casey Eye Institute to evaluate the co’s proprietary HuCNS-SC product candidate (purified human neural stem cells) as a potential treatment for retinal degeneration, a leading cause of blindness.
07:31 COL sees FY08 $3.85-4.00 vs $3.94 First Call consensus; sees revs $4.75 bln vs $4.81 bln First Call consensus

07:31 GILD Gilead Sciences: Delivers another solid quarter of key product sales - Rodman & Renshaw (44.81 +0.60)

Rodman & Renshaw notes GILD reported diluted 4Q07 GAAP EPS of $0.41, inline with firm’s and the street consensus est of $0.41 and $0.40, respectively. Altogether, the upside in the HIV franchise, especially Truvada, resulted in a solid quarter for GILD. Firm believes Europe will be a significant market for GILD in 2008 and beyond. The co expects that it will have reimbursement issues settled in the big five and additional countries within nine months and that it expects the sales ramp to be similar to that in the U.S. Firm notes that Letairis, Viread in HBV, and azteronam lysine will be key products to watch in 2008.
07:31 ESI prelim $1.20 vs $1.17 First Call consensus; revs $230.4 mln vs $237.7 mln First Call consensus

07:31 CMCO prelim $0.53 vs $0.46 First Call consensus; revs $155.2 mln vs $148.38 mln First Call consensus

07:30 COL prelim $0.93 vs $0.91 First Call consensus; revs $1.11 bln vs $1.10 bln First Call consensus

07:30 WSTL Westell Tech: Results slightly better, new contracts ramping in 1H:F09 - Baird (1052 )

Baird notes WSTL’s rev and EPS results were slightly better than expectations and outsourcing appears complete. Mgmt stated the co has received Verzion FiOS orders for MDUs and strategic alternatives for CPI are being explored. FQ4 rev guidance of $43-$45 mln was lower than their ests as new AT&T contract don’t begin until 1H’F09.
07:29 BKHM Bookham Tech: Solid results and outlook as BKHM continues progress toward profitability - Merriman (2.13 )

Merriman notes BKHM reported F2Q results in-line with its upside preannouncement, and though noting some recent and very generalized caution among its customers in guiding flat to slightly down for FQ3, firm notes that this is in-line with typical seasonality for the March quarter and continues to represent a dramatic improvement from the mid $40 mln rev levels seen only a few quarters ago at Bookham. With the balance sheet solidified, results and guidance around EBITDA breakeven, they believe the shares remained undervalued under 1x rev.
07:29 YHOO Yahoo is in talks on MP3 service - WSJ (20.01 +0.09)

WSJ reports the co is in early discussions with major record labels over offering unprotected MP3s either for sale or free as part of an ad-supported service, two record-company executives familiar with the talks said yesterday. The talks, held as recently as last month, were preliminary because Yahoo is still working out the details, said the executives, who requested anonymity because the discussions were confidential. Yahoo hopes to launch the service this year, they said. Carrie Davis, a spokeswoman for Yahoo, said the co has often said it wants to offer music without copy protections, and the subject has been part of its continuing talks with record labels. But Ms. Davis denied that discussions with record labels on the matter have stepped up in recent weeks or that anything is imminent.
07:28 COF Capital One: Preparing for tougher times - FBR (44.20 )

Friedman Biliings reiterates their Market Perform rating of COF, reflecting their belief that COF’s credit experience, combined with the repricing dynamics of credit cards and sufficient liquidity leave COF able to navigate what firm expects to be a significant increase in consumer-related credit costs. While macro conditions are beyond mgmt’s control, they note COF is reducing expenses ($200 mln reduction, or $0.34/sh), raising credit standards, and bolstering liquidity and capital levels. That said, while the shares are relatively cheap on an historical basis, firm does not see a catalyst for share price appreciation until investors become more comfortable with the macro outlook for consumer credit.
07:28 CTXS Citrix Systems: Strong December results; steady as she goes - FBR (32.00 )

Friedman Billings notes CTXS posted a solid Dec quarter across the board, as the co beat the Street on both the top and bottom lines. Importantly, on the Presentation Server front, the version 4.5 Platinum edition is serving as a nice growth catalyst for CTXS to further tap into its massive installed base, a dynamic that was evidenced by the strong product license performance in the quarter. Firm believes CTXS continues to make strides in the fertile server and desktop virtualization fronts, as the co continues to build its partner/OEM relationships, which they believe is vital in achieving the co’s XenSource revenue target for 2008.
07:27 SLM SLM Corp: Rationalizing the Business, second-Half 2008 story - FBR (18.69 )

Friedman Billings reiterates their Market Perform rating on SLM, as cos still faces uncertainty regarding funding costs and a significant (and potentially disruptive) cost-cutting initiative. With a reinforced senior mgmt team in place, the co is undergoing a necessary and healthy rationalizing of its business, which includes exiting uneconomical lending products. While the new focus on higher-quality schools and borrowers will not be evident for some time, they believe the co is being proactive in ring-fencing credit exposure and has the ability to flex its scale muscle to position itself for significant growth heading into 2009. Firm cuts their tgt to $22 from $20.
07:24 SONS Sonus Networks upgraded to Buy from Hold at Cantor Fitzgerald- tgt $5.50, based on valuation (3.87 )

07:23 ECB’s Weber says interest rates are ‘accommodative’ and expectations of reductions may be ‘wishful thinking’ - Bloomberg.com

Bloomberg.com reports European Central Bank’s Weber said interest rates in the euro region are still ‘accommodative’ and investor expectations of reductions later this year may be ‘wishful thinking.’ Weber adds “we have a positive economic outlook and as long as that doesn’t change I would say that rates are still on the accommodative side and in no way restrictive.'’ The euro rose and bonds dropped after the comments as investors pared bets the ECB will follow the U.S. Federal Reserve and cut interest rates to counter an economic slowdown. Weber’s comments come a day after ECB President Jean-Claude Trichet said he’s committed to fighting inflation. Bond investors yesterday dismissed the ECB’s assertion that rate cuts aren’t imminent. European two-year government notes rose the most since September 2001 and yields on June rate futures dropped.
07:22 WIRES On The Wires

Coach (COH) announces the opening of a global flagship store within a Hong Kong shopping district… Aladdin Knowledge Systems (ALDN) announces an equity investment in Tokyo-based Athena Smartcard Solutions.
07:22 MHP McGraw-Hill misses by $0.01, reports revs in-line (39.71 )

Reports Q4 (Dec) earnings of $0.51 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.52; revenues fell 1.6% year/year to $1.57 bln vs the $1.55 bln consensus. Co expects revenue growth in 2008 of 6% to 8% at McGraw-Hill Education and Information & Media, and a 2% to 4% increase at Financial Services. Co sees earnings per share increasing by 3% to 5% in 2008.
07:22 BBV Banco Bilbao Vizcaya 2007 net profit up 29%, buoyed by Spain, Mexico - DJ (19.99 )

DJ reports the bank said net profit rose 29% last year, driven by strong growth at its core Spanish and Mexican operations. The co said net profit for the year rose to EUR 6.13 bln, compared with EUR 4.74 bln in 2006. Analysts had expected a full-year net profit of EUR 6.27 bln. BBVA said net interest income last year rose to EUR 9.77 bln from EUR 8.37 bln a year earlier, broadly in line with analyst expectations of EUR 9.73 bln. Net interest income growth was supported by strong credit expansion at BBVA’s Spanish and Mexico-U.S divisions, which each account for about a third of profits. BBVA added that it will increase its 2007 dividend by 15% to EUR 0.733 a share.
07:21 Software sector upgraded to Market Weight from Underweight at Bear Stearns

07:21 TMA Thornburg Mortg upgraded to Hold from Sell at Citigroup (10.03 )

07:21 ISCA Intl Speedway beats by $0.08, misses on revs; guides FY08 EPS in-line, revs in-line (40.27 +1.37)

Reports Q4 (Nov) earnings of $1.11 per share, $0.08 better than the First Call consensus of $1.03; revenues fell 7.1% year/year to $235.5 mln vs the $249.6 mln consensus. Co issues in-line guidance for FY08, sees EPS of $3.05-3.15 vs. $3.05 consensus; sees FY08 revs of $805-825 mln vs. $824.93 mln consensus.
07:19 CRA Celera Genomics beats by $0.05, beats on revs; guides FY08 EPS above consensus, revs in-line (14.76 )

Reports Q2 (Dec) earnings of $0.02 per share, excluding non-recurring items, $0.05 better than the First Call consensus of ($0.03); revenues rose 205.3% year/year to $40.3 mln vs the $35.3 mln consensus. Co issues mixed guidance for FY08, sees EPS of $0.06, excluding non-recurring items, vs. $0.00 consensus; sees FY08 revs of $135-145 mln vs. $137.04 mln consensus.
07:19 HD Home Depot assumed with a Hold at Jefferies (29.95 )

Jefferies assumes coverage of HD with a Hold and a $25-27 tgt reflecting a challenging environment for multiple expansion from here, given downward EPS revisions and risk in the housing market. Firm notes buyer sentiment is negative, prices continue their decline, and tighter credit continues to grip the housing market. All this suggests sales will remain weak near term. The firm also assumes Lowe’s (LOW) with a Hold and a $24-26 tgt.
07:18 LEN Lennar reports Q4 (Nov) results, beats on revs (14.94 )

Reports Q4 (Nov) loss of $7.92 per share, may not be comparable to the First Call consensus of ($1.65); revenues fell 49.0% year/year to $2.18 bln vs the $2.06 bln consensus. Loss on land sales totaled $1.2 billion in the fourth quarter of 2007, which included $740.4 million of FAS 144 valuation adjustments on the inventory acquired by the Morgan Stanley (MS) land investment venture, $229.7 million of FAS 144 valuation adjustments and $217.6 million of write-offs of deposits and pre-acquisition costs related to 12,500 homesites under option that the Company does not intend to purchase. In the fourth quarter of 2006, loss on land sales totaled $119.9 million, which included $33.3 million of FAS 144 valuation adjustments and $111.1 million of write- offs of deposits and pre-acquisition costs related to 9,400 homesites that were under option. In November 2007, the Company and Morgan Stanley Real Estate Fund II, L.P., an affiliate of Morgan Stanley & Co., Inc., formed a strategic land investment venture to acquire, develop, manage and sell residential real estate. The Company acquired a 20% ownership interest and 50% voting rights in the land investment venture. Concurrent with the formation of the land investment venture, the Company sold a diversified portfolio of its land to the venture for $525 million. The properties acquired by the new entity consist of approximately 11,000 homesites in 32 communities located throughout the country. The properties sold by the Company had a net book value of approximately $1.3 billion. As part of the transaction, the Company entered into option agreements and obtained rights of first offer providing the Company the opportunity to purchase certain finished homesites. The exercise price of the options is based on a fixed percentage of the future home price. The Company has no obligation to exercise these options and cannot acquire a majority of the entity’s assets. The Company is managing the land investment venture’s operations and receives fees for its services. The Company will also receive disproportionate distributions if the investment venture exceeds certain financial targets. Co said, “As we look ahead to 2008, we are not expecting market conditions to improve, and perhaps might continue to decline in the near term.”
07:17 BAX Baxter beats by $0.02, beats on revs; guides Q1 EPS in-line; guides FY08 EPS in-line (61.34 )

Reports Q4 (Dec) earnings of $0.76 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.74; revenues rose 8.9% year/year to $3.01 bln vs the $2.9 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.71-0.73, excluding non-recurring items, vs. $0.71 consensus; co sees revs up approx 5% excluding Transfusion Therapies, sees revs up approx 3% excluding foreign exchange. Co issues in-line guidance for FY08, sees EPS of $3.10-3.18, excluding non-recurring items, vs. $3.12 consensus; co sees revs up approx 6-7% excluding Transfusion Therapies, co sees revs up 5-6% excluding foreign exchange.
07:17 GENZ Genzyme profiled in New America section of IBD (76.25 -0.24)

IBD reports the co develops therapeutics to treat rare inherited disorders. It also develops treatments for renal or kidney diseases, orthopedics, transplants, oncology, cardiovascular as well as diagnostic testing. Its diverse product portfolio and vast geographic footprint is what separates Genzyme from the competition, said analyst Christopher Raymond of Robert W. Baird… its biggest growth driver is its line of enzyme replacement therapies. The fastest growing product of the therapeutics group is Myozyme, which is the first treatment ever approved for Pompe disease… Cerezyme, along with its predecessor Ceredase, has been the only enzyme replacement treatment for over a decade for Type I Gaucher disease, which is the most common of the lysosomal storage disorders. Physicians expect the number of patients with the disease to grow and Cerezyme is the top treatment for the disorder. One risk to Cerezyme’s dominance is that two competitors, Shire (SHPGY) and Protalix Biotherapeutics (PLX). are in phase III of clinical trials for their own Gaucher disease treatments, which are expected to hit the market in 2010 or 2011. The co’s emerging segments, including its renal franchise, are expected to grow at a compound average of roughly 19%. Analysts polled by Thomson Financial expect EPS to be $4.01 in 2008… The co plans to expand its pipeline to support its growth beyond 2011… However, there are two major challenges facing Genzyme: slowing revenue growth as most of its products are maturing, and a lack of blockbusters in its pipeline said analyst Philip Nadeau of Cowen.
07:15 ALDN Aladdin Knowledge Systems reports Q4 (Dec) results, beats on revs; guides FY08 EPS in-line, revs above consensus (17.98 )

Reports Q4 (Dec) earnings of $0.35 per share, may not be comparable to the First Call consensus of $0.32. Note, consensus includes stock-based comp, however, the $0.35 excludes stock-based comp as well as some other charges. Co does not break out items on a per share basis so we cannot compare to consensus. Revenues rose 20.0% year/year to $29.1 mln vs the $28.6 mln consensus. For FY08, co sees EPS of $1.28-1.40 vs. $1.32 consensus; sees FY08 revs of $123-130 mln vs. $120.4 mln consensus.
07:15 ZOLL ZOLL Medical reports EPS in-line, beats on revs (25.87 )

Reports Q1 (Dec) earnings of $0.15 per share, in-line with the First Call consensus of $0.15. “Our outlook for the remainder of the year continues to be very positive.”
07:15 OREX Orexigen Therapeutics prices a 7 mln share common stock offering at $11/share (11.41 )

07:14 F Ford Motor misses by $0.01, beats on revs (6.30 )

Reports Q4 (Dec) loss of $0.20 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of ($0.19); revenues rose 9.4% year/year to $44.1 bln, excluding special items, co reports revs of $45.5 bln, both higher than the $38.72 bln consensus;. Co sees Y08 US SAAR Industry Volumes of 16.0 mln and Europe of 17.6 mln. Co sees quality to improve yr/yr and automotive costs to improve about $3 bln yr/yr. Co sees US Market Share at the low end of 14-15% range. Co sees a net income loss in Y08, but better than Y07. “To help ensure we are able to deliver our commitments despite the difficult external environment, we will be taking further cost reduction actions in North America, including enterprise-wide UAW buyouts. In addition, we will continue to accelerate the flow of new products, reduce vehicle complexity, and adjust production to the changing business environment.”
07:14 CALLS Early Research Calls V

Upgrades: Morgan Keegan upgrades Intersil (ISIL 23.22) to Outperform from Market Perform… Morgan Keegan upgrades Microchip (MCHP 27.65) to Outperform from Market Perform. Miscellaneous: Piper Jaffray removes Ebay (EBAY 28.94) from their Alpha List… Oppenheimer initiates Omniture (OMTR 27.0 with an Outperform and a $34 tgt saying they like Omniture because of its commanding position in Web analytics , favorable network effects, material growth opportunities, independence, and high operating leverage… Jefferies initiates Energy XXI (EXXI 4.49) with a Buy and sets a $7 tgt, as they believe the market has undervalued EXXI’s plethora of development opportunities, as well as exploration upside through the acquisition of over 1,000 square miles of regional seismic.
07:13 MHP prelim $0.51, ex items, vs $0.52 First Call consensus; revs $1.57 bln vs $1.55 bln First Call consensus

07:12 CALLS Early Research Calls IV

Upgrades: Bear Stearns upgrades Human Genome (HGSI 5.62) to Outperform from Peer perform… Bear Stearns upgrades McAfee (MFE 30.04) to Outperform from Peer Perform… Deutsche Bank upgrades Western Digital (WDC 24.94) to Buy from Hold and raises their tgt to $33 from $30, based on valuation following Q208 revenue and EPS that exceeded firm and consensus estimates with raised Q308 revenue and EPS guidance… Citigroup upgrades StatoilHydro (STO 25.30) to Buy from Hold… Merrill upgrades Turkcell (TKC 22.16) to Buy from Neutral… Soleil upgrades Cephlon (CEPH 68.47) to Buy from Hold saying they believe that the current valuation more than discounts CEPH’s growth outlook. Firm believes that the new product cycle (Amrix/Treanda) will address near-term challenges… Jefferies upgrades Manhattan Associates (MANH 22.52) to Buy from Hold and lowers their tgt to $30 from $31, following checks at National Retail Federation that lead them to believe that Manhattan will top consensus estimates and continue its impressive track record of growing software licenses at 2x the SCM market rate… Wachovia upgrades General Dynamics (GD 79.05) to Outperform from Market Perform. Downgrades: Bear Stearns downgrades Apollo Investment (AINV 15.21) to Peer Perform from Outperform… Charter Equity downgrades Motorola (MOT 10.01) to Underperform from Market Perform, following an 84% decline in Q4 profit and lowered Q1 EPS guidance… Wachovia downgrades Strategic Hotels & Resorts (BEE 14.80), Hersha Hospitality Trust (HT 8.83) and Hospitality Props (HPT 35.1 to Market Perform from Outperform… Credit Suisse downgrades Legg Mason (LM 74.49) to Underperform from Neutral.
07:11 ABI Applied Bio beats by $0.10, reports revs in-line (30.89 )

Reports Q2 (Dec) earnings of $0.50 per share, $0.10 better than the First Call consensus of $0.40; revenues rose 6.0% year/year to $561.9 mln vs the $564.7 mln consensus. The co expects that excluding the impact of currency, non-GAAP EPS will grow at a double-digit rate. For fiscal 2008, the co expects revenue growth rate in the mid single digit growth assuming current exchange rates. Revenues are expected to be comparable to the prior year level for Instruments and to increase for Consumables.
07:11 ABC AmerisourceBergen reports EPS in-line, beats on revs; guides FY08 EPS in-line (45.76 )

Reports Q1 (Dec) earnings of $0.62 per share, in-line with the First Call consensus of $0.62; revenues rose 10.5% year/year to $17.37 bln vs the $17 bln consensus. Co issues in-line guidance for FY08, sees EPS of $2.77-2.95 vs. $2.87 consensus. “Although PMSI’s performance in the quarter was below our expectations, our investment in PMSI’s technology and service delivery infrastructure as well as its aggressive profitability initiatives are expected to drive greater operational leverage and margin expansion. The result
should be significant performance improvement by fall 2008. Nevertheless, we believe that for the appropriate value, this is the right time to sell the business as we focus on AmerisourceBergen’s core pharmaceutical distribution and related services businesses to maximize shareholder value.”
07:09 KLIC Kulicke & Soffa beats by $0.01, beats on revs; guides Q2 revs below consensus (5.98 )

Reports Q1 (Dec) earnings of $0.30 per share, $0.01 better than the First Call consensus of $0.29; revenues rose 48.6% year/year to $226.3 mln vs the $220.6 mln consensus. Co issues downside guidance for Q2, sees Q2 revs of $180.0 vs. $192.98 mln consensus. “This quarter, our gross margin was 43.6% and net margin was 13.5%, both on a non-GAAP basis. We believe these measures demonstrate the strength of the Company’s leadership in technology, product cost, and customer relationships.” He added, “We are especially pleased with our packaging materials segment, which produced very good results this quarter. Revenue, unit volumes, gross margins, and operating income all improved over the September quarter.”
07:09 CPS ChoicePoint reports EPS in-line, misses on revs; guides FY08 EPS in-line (32.19 )

Reports Q4 (Dec) earnings of $0.41 per share, excluding non-recurring items, in-line with the First Call consensus of $0.41; revenues fell 1.4% year/year to $244.5 mln vs the $259.5 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.73-1.90 vs. $1.97 consensus. “On January 22, 2008, the Company announced that the staff of the U.S. Securities and Exchange Commission (the “SEC” has notified the Company that the staff had completed its investigation regarding possible identity theft, trading in ChoicePoint stock by its Chief Executive Officer and Chief Operating Officer and related matters without recommending any enforcement action by the SEC. Separately, ChoicePoint entered into a Letter of Understanding, subject to notification of the class, court approval and certain other conditions, through which it and a group of shareholders will settle a class-action lawsuit filed against the Company and certain of its officers, stemming from the previously disclosed fraudulent data access incident in 2005. Neither the Company nor any of the other defendants admitted to any liability.”
07:08 HSY Hershey Foods misses by $0.01, beats on revs; guides FY08 EPS below consensus, revs above consensus (36.39 )

Reports Q4 (Dec) earnings of $0.54 per share, $0.01 worse than the First Call consensus of $0.55; revenues rose 0.4% year/year to $1.34 bln vs the $1.32 bln consensus. Co issues mixed guidance for FY08, sees EPS of $1.85-1.90, excluding non-recurring items, vs. $2.15 consensus; sees FY08 rev growth of 3-4% or roughly $5.1-5.15 bln vs. $5.04 bln consensus.
07:07 ISCA guides FY08 EPS to $3.05-3.15 vs $3.05 First Call consensus; sees revs of $805-825 mln vs $824.93 mln First Call consensus

07:06 DDSS Labopharm receives FDA response to recent appeal of Approvable Letter for once-daily Tramadol (0.94 )

Co announces that it has received a written response from the FDA regarding its most recent appeal of the decision in the Agency’s Approvable Letter for its once-daily tramadol formulation through the Formal Dispute Resolution process. John K. Jenkins, M.D., Director for the Office of New Drugs, Center for Drug Evaluation and Research, did not overturn the decision. However, Dr. Jenkins has suggested additional statistical analysis of existing data as a means to potentially satisfy the Agency’s requirements. The statistical method proposed for the analysis is different from that previously requested by the FDA since the May 2007 Approvable Letter. Dr. Jenkins also recommended the Company meet with the Agency prior to any resubmission.
07:05 ISCA prelim $1.11 vs $1.03 First Call consensus; revs $235.5 mln vs $249.64 mln First Call consensus

07:05 F prelim ($0.20) vs ($0.19) First Call consensus; revs $44.1 bln vs $38.72 bln First Call consensus

07:04 LTRX Lantronix sees Q2 EPS of $0.01-0.02 vs $0.00 single analyst est; revs $15.1-15.3 mln vs $14.50 mln single analyst est (0.57 )

07:04 ALDN sees FY08 $1.39-1.51 vs $1.32 First Call consensus; sees revs $123-130 mln vs $120.4 mln First Call consensus

07:03 BAX sees Q1 $0.71-0.73 vs $0.71 First Call consensus; sees revs up 3%

07:03 BAX sees FY08 $3.10-3.18 vs $3.12 First Call consensus; sees revs up 5-6%

07:03 LEN prelim ($7.92) vs ($1.65) First Call consensus; revs $2.18 bln vs $2.06 bln First Call consensus

07:02 BAX prelim $0.76 vs $0.74 First Call consensus; revs $3.01 bln vs $2.90 bln First Call consensus

07:02 KLIC sees Q2 revs $180.0 mln vs $192.98 mln First Call consensus

07:02 NSIT Insight Enterpr announces definitive agreement to purchase Calence, expects to be neutral to slightly accretive to FY08 EPS (16.71 )

Co announces it has signed a definitive agreement to acquire privately-held Calence, an independent technology service providers specializing in Cisco networking solutions, advanced communications and managed services. Under the terms of the agreement, co will acquire Calence for a cash purchase price of $125 mln. Up to an additional $35 mln in purchase price consideration may be due if certain performance targets are achieved over the next four years. Co expects the acquisition to close early in Q2 and while the co has not yet completed its final valuation of the intangible assets that will be purchased in the transaction, it currently expects the transaction to be neutral to slightly accretive to full-year 2008 diluted earnings per share.
07:02 ALDN prelim $0.35 vs $0.32 First Call consensus; revs $29.1 mln vs $28.6 mln First Call consensus

07:02 KLIC prelim $0.30, ex items vs $0.29 First Call consensus; revs $226.3 mln vs $220.60 mln First Call consensus

07:01 CRA sees FY08 $0.06 vs $0.00 First Call consensus; sees revs $135-145 mln vs $137.04 mln First Call consensus

07:01 MXGL Max Capital Group sends letter to shareholders; preliminary results indicate that net operating income per fully diluted share will be between $4.80 and $4.95 (27.95 )

Co announces it issued a letter addressed to the co’s shareholders, employees and other stakeholders updating them on Max Capital’s performance and progress in 2007 and on the outlook for the co in 2008. Preliminary results indicate that our net operating income per fully diluted share will be between $4.80-$4.95. Their anticipated 2008 premium total is relatively flat with 2007 in their more mature segments and shows growth in their newer Max Specialty business. They expect to continue to purchase for our insurance businesses approximately the same level of reinsurance coverage that we had in 2007.
07:01 ZOLL prelim $0.15 vs $0.15 First Call consensus; revs $93.015 mln vs $81.40 mln First Call consensus

07:01 ABC reaffirms FY08 $2.77-2.95 vs $2.87 First Call consensus

07:01 CRA prelim $0.02 vs ($0.03) First Call consensus; revs $40.3 mln vs $35.25 mln First Call consensus

07:00 ABI prelim $0.50 vs $0.40 First Call consensus; revs $561.9 mln vs $564.73 mln First Call consensus

07:00 ABC prelim $0.62, ex items vs $0.62 First Call consensus; revs $17.37 bln vs $17.00 bln First Call consensus

06:59 TXT Textron beats by $0.10, beats on revs; guides Q1 EPS below consensus; guides FY08 EPS below consensus, revs above consensus (54.66 )

Reports Q4 (Dec) earnings of $1.02 per share, $0.10 better than the First Call consensus of $0.92; revenues rose 17.6% year/year to $3.76 bln vs the $3.59 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.75-$0.85 vs. $0.92 consensus. Co issues mixed guidance for FY08, sees EPS of $3.75-$3.95 vs. $4.04 consensus; sees FY08 revs of $15 bln vs. $14.76 bln consensus. “While we expect softening and maybe even a temporary downturn in the U.S. economy in 2008, we believe we are particularly well positioned given our strong aircraft and military backlogs and history of prudent underwriting at Textron Financial. Even with the softer U.S. economy, we expect another banner year of business jet orders exceeding current year deliveries. Given that our jet backlog already extends well into 2009, this bodes well for continued, uninterrupted growth well into the next decade at Textron.”
06:58 CALLS Early Research Calls III

Upgrades: Friedman Billings upgrades Gilead Sciences (GILD 44.81) to Outperform from Market Perform and raises their tgt to $54 from $43, following Q407 EPS that exceeded consensus estimates, revenue that matched estimates and note the continuing strength in the Truvada franchise at a time when they thought it would be contracting… Deutsche Bank upgrades Repsol (REP 29.24) to Hold from Sell… Wachovia upgrades Biomed Realty Trust (BMR 22.80) to Outperform from Market Perform… Deutsche Bank upgrades Packaging Corp. of America (PKG 23.74) to Buy from Hold and lowers their tgt to $30 from $32, based on valuation following Q407 EPS that was below firm and consensus estimates coupled with lowered Q108 guidance. Downgrades: Bear Stearns downgrades CNH Global (CNH 50.00) to Peer Perform from Outperform… Broadpoint downgrades THQ inc (THQI 25.10) to Sell from Neutral with a $15 tgt saying they believe the material decrease in their FY09 EPS estimates, coupled with possible multiple contraction arising from the company’s, dearth of wholly owned IP, may lead to significant deterioration in THQI shares…. Oppenheimer downgrades DuPont (DD 45.36) to Undereperform from Perform saying they believe guidance and consensus estimates are 5-15% too high, and it will be difficult for DuPont to grow EPS while we are in possible recession. Miscellaneous: Piper Jaffray removes Ebay (EBAY 28.94) from their Alpha List… Oppenheimer initiates Omniture (OMTR 27.0 with an Outperform and a $34 tgt saying they like Omniture because of its commanding position in Web analytics , favorable network effects, material growth opportunities, independence, and high operating leverage.
06:55 XRX Xerox reports EPS in-line, revs in-line; guides Q1 EPS in-line; reaffirms FY08 EPS guidance; authorizes $1 bln buyback (13.25 )

Reports Q4 (Dec) earnings of $0.41 per share, in-line with the First Call consensus of $0.41; revenues rose 11.5% year/year to $4.88 bln vs the $4.83 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.25-0.28 vs. $0.28 consensus. Co reaffirms guidance for FY08, sees EPS of $1.31-1.35 vs. $1.31 consensus. Earlier this week, co’s Board of Directors authorized an additional stock buyback of $1 bln, adding to the remaining $370 mln available for share repurchase.
06:53 FCF First Commonwealth reports Q4 EPS of $0.16 per share, $0.01 better than the First Call consensus of $0.15. (11.13 )

Report came out last night after the close.
06:51 NOK Nokia beats by Euro 0.05, beats on revs (32.43 )

Reports Q4 (Dec) earnings of Euro 0.47 per share, excluding non-recurring items, Euro 0.05 better than the First Call consensus of Euro 0.42; revenues rose 29.6% year/year to Euro 15.17 bln vs the Euro 14.37 bln consensus. Mobile device volume for Q4 was 133.5 mln units, up 20% yr/yr. Nokia’s market share for the fourth quarter 2007 was 40%, compared with 39% in the third quarter 2007 and 36% in the fourth quarter 2006. Nokia’s average selling price (ASP) in the fourth quarter 2007 was EUR 83, down from EUR 89 in the fourth quarter 2006 and up from EUR 82 in the third quarter 2007. Co expects market share in the first quarter 2008 to be approximately at the same level sequentially. Co continues to expect industry mobile device volumes in 2008 to grow approximately 10% from the approximately 1.14 billion units Nokia estimates for 2007. Nokia continues to expect the device industry to experience value growth in 2008, but expects some decline in industry ASPs, primarily reflecting the increasing impact of the emerging markets and competitive factors in general.
06:46 MBRK MiddleBrook Pharma says the FDA approves its Amoxicillin PULSYS for pharyngitis/tonsillitis in adolescents and adults (1.25 )

Co announces that that it has received approval of its New Drug Application from the FDA, for its once-daily MOXATAG Tablets 775 mg for the treatment of adults and pediatric patients 12 years and older with pharyngitis and/or tonsillitis secondary to Streptococcus pyogenes (aka strep throat).
06:46 CCMP Cabot Micro beats by $0.04, beats on revs (33.82 )

Reports Q1 (Dec) earnings of $0.51 per share, $0.04 better than the First Call consensus of $0.47; revenues rose 14.2% year/year to $93.4 mln vs the $91.3 mln consensus.
06:45 CALLS Early Research Calls II

Upgrades: Lehman upgrades Tenet Healthcaer (THC 4.2 to Equal-weight from Underweight… Lehman upgrades AmSurg (AMSG 26.07) to Equal-weight from Underweight… Lehman upgrades Lifepoint Hospitals (LPNT 26.77) to Overweight from Equal-weight… Citigroup upgrades McAfee (MFE 30.04) to Buy from Hold… Citigroup upgrades Anglo American (AAUK 25.9 to Buy from Hold… Lehman upgrades HealthSouth (HLS 17.93) to Overweight from Underweight. Downgrades: Lehman downgrades Omnicare (OCR 21.64) to Underweight from Equal-weight… Morgan Stanley downgrades Trane (TT 44.71) to Underweight from Equal-weight… Citigroup downgrades eBay (EBAY 28.94) to Hold from Buy and lowers their tgt to $31 from $49… Citigroup downgrades Verex Pharma (VRTX 20.02) to Hold from Buy… Credit Suisse downgrades Philips Electronics (PHG 37.3 to Underperform from Neutral. Miscellaneous: Standpoint Research initiates Dover (DOV 36.62) with a Hold and sets a 3-yr tgt of $55, as they favor the co’s acquisitions that compliment organic growth and a diversified portfolio that caters to various market segments yet have concerns over profitability in the Fluid segment that is highly dependable on oil and gas prices that have been volatile historically, a slowdown in the Hill Phoenix unit, acquisition integration and seasonal markets… Oppenheimer initiates comScore (SCOR 24.65) with an Outperform and sets a $35 tgt, based on valuation in addition to its leadership position in digital marketing intelligence, a sustainable competitive advantage, material growth opportunities and high operating leverage.
06:36 Banks pressed to bail-out bond insurers - Financial Times

The Financial Times reports leading U.S. banks are under pressure from New York state’s insurance regulator to provide as much as $15bn to support struggling bond insurers, people familiar with the matter said on Wednesday night. Eric Dinallo, New York insurance superintendent, held a two-hour meeting with bank executives on Wednesday and urged them to provide as much as $5 bln in initial capital to support the insurers — the largest of which are MBIA (MBI) and Ambac (ABK) — and ultimately to commit up to $15 bln. There is widespread concern that rating agency downgrades of the specialist insurers known as monolines could force a fresh round of writedowns by banks, which could damage already battered investor confidence. This has led to speculation that banks would band together to prop up the insurers, which guarantee payments on thousands of ­billions of dollars worth of bonds issued by municipal governments and other borrowers. A spokesman for Mr. Dinallo had no comment on details of the meeting. People familiar with the matter said the specifics of a possible capital infusion had yet to be decided, but contributions would not necessarily be based on how much exposure each bank has to bond insurers. Some participants in the meeting described the discussions as at an early stage. Briefing.com note: See yesterday’s comment at 15:39 for initial announcement.
06:34 European stocks surge 5 pct, shrug off SocGen

European stocks surged more than 5 percent by midday on Thursday, as hopes of a rescue package for bond insurers helped the broader market shrug off of a huge alleged fraud by a trader at French bank Societe Generale. SocGen shares fell 3% when they started trading after 1105 GMT, but the news had little impact on stock in other banks, with the sector the top weighted gainer on the pan-European FTSEurofirst 300 index . The benchmark was up 4.9 percent at 1,324.48 points, on track for its biggest one-day gain since March 2003. The FTSE is up 3.8%; the DAX is up 5.4%; and the CAC is up 4.9%. (Reuters)
06:34 LMT Lockheed Martin beats by $0.20, reports revs in-line; slightly raises Y08 guidance range (101.69 )

Reports Q4 (Dec) earnings of $1.89 per share, $0.20 better than the First Call consensus of $1.69; revenues were unchanged from the year-ago period at $10.84 bln. Co issues guidance for FY08, sees EPS of $7.05-7.25, compared to previous guidance of $6.95-7.15, vs. $7.29 consensus; sees FY08 revs of $41.8-42.8 bln, compared to previous guidance of $41.25-42.75 bln, vs. $42.8 bln consensus.
06:33 Asian shares up on Wall Street’s turnaround; Sensex swings 1,100pts, ends down 372pts

A sharp reversal on Wall Street helped most Asian stock markets rally for a second day Thursday, although trading was choppy at times, reflecting investor uncertainty after the recent volatility in global markets. News that French bank Societe Generale is to book another 2 bln eur in subprime-related writedowns and that it has discovered a 4.9 bln eur fraud in its brokerage activities weighed late in the day. The Hang Seng closed down 2.3% at 23,539.27, tumbling in the last half hour as the SocGen news broke. The Nikkei ended up 2.1% at 13,092.78, while the broader Topix added 2.8% to 1,284.85. The Singapore Straits Times closed up 2.2% at 3,050.09 and the Jakarta Composite added 1.6% at 2,516.70… The Sensex opened with a huge positive gap of over 300 points at 17,921. Fresh buying in early trades saw the index rally to a high of 18,185 - up 591 points from the previous close. Selling pressure at higher levels saw the index plunge to a low of 17,070 - down 1,115 points from the day’s high. The Sensex finally ended with a loss of 372 points (2.1%) at 17,222. (Thomson, Business Standard)
06:32 WIRES On The Wires

Trimble (TRMB) announces it has acquired privately-held Geo-3D in an all-cash transaction. Financial terms were not disclosed… Napster (NAPS) announces that the its mobile music subscription service is available to NTT DoCoMo customers through nine new models of the mobile co’s line of music-enabled handsets, the FOMA-705i series.
06:31 WRLD World Acceptance beats by $0.08, beats on revs (23.05 )

Reports Q3 (Dec) earnings of $0.54 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.46; revenues rose 18.8% year/year to $88 mln vs the $86.1 mln consensus.
06:19 CALLS Early Research Calls I

Upgrades: Oppenheimer upgrades Garmin (GRMN 64.60) to Outperform from Perform and sets a $77 tgt, as they believe macro and business specific fundamentals will be more challenging in ‘08 than in ‘07, yet feel sentiment has troughed and downward revisions are already reflected in the share price… Baird upgrades F5 Networks (FFIV 20.1 to Outperform from Neutral and lowers their tgt to $33 from $42, following Q1 revenue results reported at the low end of guidance, but results were solid given the challenging environment, in their view… Baird upgrades Human Genome Sciences (HGSI 5.62) to Outperform from Neutral and lowers their tgt to $10 from $12, based on valuation and see the announcement that an independent data monitoring committee for Albuferon’s ACHIEVE trials suggested switching