Stocks to Watch: MGI Pharma Plunges, WebEx Climbs

Updated from 10:53 a.m. EDT

Earnings Reports & Outlooks

FileNet (FILE Quote), a maker of content management software, reported first-quarter earnings of 4 cents a share, beating estimates by 3 cents. The company expects second-quarter earnings of 2 cents to 5 cents a share, which would be below the consensus target of 6 cents. Shares of FileNet were gaining 11% to $17.10.

Iona Technologies (IONA Quote) met analysts' expectations for the first quarter, posting a loss of 8 cents a share, excluding items. The company also projected a second-quarter loss, before items, of 2 cents to 6 cents a share, but Wall Street expects a profit of 5 cents. The stock was down 13% to $13.03.

Kana Software (KANA Quote) reported first-quarter earnings, before items, of 2 cents a share, which met analysts' estimates. Revenue fell to $25 million from $37 million a year ago. The stock was down 10% to $12.74.

MGM Mirage (MGG Quote), the casino operator, was up 8% to $38.86, a 52-week high, after reporting first-quarter earnings that easily beat expectations. The company said revenue slipped to $1.02 billion from $1.07 billion a year ago.

Millipore (MIL Quote) posted first-quarter earnings from continuing operations of 40 cents a share, topping expectations by a penny. Shares of Millipore, which provides technology and services to companies developing therapeutic drugs, were up 7% to $42.75.

Siebel (SEBL Quote) was down 8% to $26 ahead of its quarterly earnings release scheduled for later Wednesday. Analysts polled by First Call expect the company to earn 12 cents a share, down from 15 cents in the year-ago quarter.

WebEx Communications (WEBX Quote) was up 13% to $17.90 after reporting first-quarter earnings, before items, of 3 cents a share, a penny ahead of estimates. The company also forecast second-quarter earnings of 3 cents to 5 cents, compared with the consensus estimate of 4 cents.

Miscellaneous News

MGI Pharma (MOGN Quote) disclosed a series of corporate developments, and shareholders decided the bad outweighed the good as they sent the company's shares down 37% to $9.25. MGI said it has stopped a late-stage clinical trial of irofulven as a drug candidate for pancreatic cancer, but the company will continue evaluating the product for other uses. The company also said a separate trial for palonosetron, a treatment for chemotherapy-induced nausea and vomiting, met the primary goal of its trial. MGI is developing palonosetron with a privately held Swiss pharmaceutical company. In addition, MGI reported a first-quarter loss of 25 cents a share, much narrower than analysts were expecting, and to complete the deluge of news, the company named Lonnie Moulder president and chief operating officer. Charles Blitzer will remain chief executive and will also be appointed chairman.