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.
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