Stocks in Motion: SafeNet
Shares of SafeNet (SFNT) were among Nasdaq's winners Friday, rising 21% after the maker of network security products said it received a $150 million contract from the Department of Defense.
The indefinite quantity contract -- the largest contract the company has ever won -- calls for SafeNet to deliver its new KIV-7M link encryptor to the government agency. The company has already received a delivery order in excess of $18 million that will begin shipping in early October. "This contract far exceeds the company's preliminary expectations of a $50 million dollar contract," the company said. "In fact, the initial IDIQ award already represents approximately half of our minimal market projections for this product."
Because of the late timing of the contract, SafeNet doesn't expect its third-quarter revenue to meet analysts' forecasts. The company now expects third-quarter revenue of $63 million to $65 million, which is below its previous guidance of $67 million to $72 million, and below the $69.7 million that analysts polled by Thomson First Call were expecting. The company, however, did reaffirm its 2005 guidance, which calls for adjusted earnings of $1.55 to $1.65 a share on sales of $255 million to $275 million. Shares were trading up $6.15 to $35.85.
Greenfield Online (SRVY) fell 22% after the provider of Internet surveys cut its third-quarter sales forecast and announced the resignation of its chief executive officer. The company now expects sales of $22 million to $23 million, below the $26 million to $27 million it had previously forecast. Analysts had projected sales of $26.4 million. Greenfield blamed the shortfall on lower-than-expected "win-rates" in North America.Dean Wiltse, in addition to resigning as CEO, also tendered his resignation as a director. Albert Angrisani will replace Wiltse. Angrisani previously served as president and chief operating officer of Harris Interactive (HPOL). Shares were down $1.50 to $5.47.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV