plummeted Monday after the wireless-handset distributor filed to restate its first-quarter income.
The San Diego-based company said the adjustment resulted after warrants issued in conjunction with its financing completed in January were classified as a derivative liability, when they should have been reclassified as equity. The company's restated first-quarter income is $1.2 million, or 15 cents a share, compared with the previously reported figure of $1.7 million, or 22 cents a share.
"Looking ahead, we are pleased that our financial statements will not be affected on a quarterly basis by having to mark-to-market the derivative liability which has now been moved to equity," CFO Jeff Klausner said in a statement. Shares nosedived $6.58, or 27.2%, to $17.64 in recent trading.
China TechFaith Wireless Communication Technology
(CNTF - Get Report)
gained after Susquehanna Financial upgraded the Beijing-based holding company, which provides mobile-handset design services, to positive from neutral. Shares climbed 58 cents, or 4.3%, to $14.10 in recent trading.
Pacific Energy Partners
surged on news the Long Beach, Calif.-based oil transporter agreed to be acquired by
Plains All American Pipeline
(PAA - Get Report)
in a deal valued at roughly $2.4 billion, including the assumption of debt and estimated transaction costs, and is expected to close near the end of 2006.
Under the terms of the agreement, Plains All American will acquire from LB Pacific LP and its affiliates the general partner interest and incentive-distribution rights of Pacific Energy, as well as 2.6 million common units and 7.8 million subordinated units for a total of $700 million in cash. Also, Plains All American will acquire the balance of Pacific Energy's equity through a tax-free unit-for-unit merger, under which, each other unit holder of Pacific Energy will receive 0.77 newly issued Plains All American common units for each Pacific Energy common unit. Shares of Pacific Energy Partners gained $2.41, or 7.5%, to $34.50 recently, while Plains All American Pipeline gained 26 cents to $46.36.