AOL, Amazon Fall After Hours, Despite Solid Numbers

America Online (AOL) posted fourth-quarter earnings of 13 cents a share, topping both the 30-analyst First Call estimate of 11 cents and the year-ago 6 cents. The leading Internet service provider said its total revenue for the quarter came in at $1.38 billion vs. the year-ago $943 million. Shares of AOL slipped in late composite trading to 115 1/16 from a New York close of 116 3/16, and edged down to 115 in after-hours trading.

Elsewhere in earnings (or lack thereof), Amazon.com (AMZN) shares shed 3 7/16 in after-hours trading to 122 following the company's second-quarter report. The online retailer lost 51 cents a share, meeting the 21-analyst forecast and widening beyond the year-ago loss of 12 cents. Amazon, which also set a 2-for-1 stock split, said its customer accounts rose 2.3 million to 10.7 million in the quarter. And the company said it expects to invest more heavily in the second half. But CFO Joy Covey said the third quarter will bring "somewhat higher" sequential revenue growth.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 6.65 +0.1% 11,002.78 +19.8% S&P 500 2.18 +0.2% 1379.28 +12.2% Nasdaq 29.48 +1.1% 2761.66 +25.9% Russell 2000 1.07 +0.2% 454.62 +7.7% TSC Internet 21.58 +3.6% 615.31 +51.5% TREASURY BOND CHANGE VALUE YIELD 30-Year 8/32 90 28/32 5.908%

In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Business-to-business e-commerce software provider Ariba (ARBA) reported earnings per share exactly in line with expectations.

In the fiscal third quarter ended June 30, Ariba lost 46 cents a share, or a net loss of $6 million, excluding amortization of stock-based compensation. The loss was 4 cents wider than a year ago. Including the amortization of stock-based compensation, the company lost $11.3 million, or 86 cents a share. Revenue jumped to $11.9 million from $2.5 million a year ago.

"The strong revenue growth in the quarter was a result of extending our leading base of blue-chip buyers," said Keith Krach, president and CEO of Ariba.

In the quarter, Ariba made a foray into the mid-market by inking a deal with J.D. Edwards (JDEC), which primarily makes software that automates back-office tasks. Under the agreement, J.D. Edwards would resell Ariba's products. Credit Suisse First Boston analyst George Gilbert expects that Ariba and Aspect Development (ASDV) will announce a similar reselling deal on Aug. 2. CSFB has not underwritten for Ariba.

Krach declined to comment on whether such a deal is in the works, but said he expected the J.D. Edwards deal to start adding materially to revenue "over the next few quarters."

Ariba went public on June 23 at $23 a share and closed at 90 that day, making it the fifth most successful IPO in history, according to IPO Monitor. The stock closed today up 11 1/2, or 10.5%, to 121.

More good news for software makers includes results from Vignette (VIGN), which makes content management software for Web sites.

The Austin, Tex.-based company reported a narrower-than-expected loss in the second quarter ended June 30. It lost 22 cents a share, or $5.5 million, excluding acquisition-related charges and amortization of deferred compensation. First Call's eight-analyst consensus called for a loss of 26 cents vs. the year-ago loss of 31 cents. The company's revenue soared 409% to $14.9 million from $2.9 million in the same quarter last year.

-- Medora Lee

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Atmel (ATML) reported second-quarter earnings of 13 cents a share, in line with the nine-analyst estimate. The year-ago loss of 92 cents included charges; Atmel did not provide per-share operating figures for the period.

Bright Horizons Family Solutions (BFAM) reported second-quarter earnings of 16 cents a share, a penny better than the seven-analyst estimate and up from the year-ago 12 cents. The company also set a buyback of up to 500,000 shares.

Cendant's (CD) stock rose to 21 3/8 in after-hours trading from a close of 21 1/8 following the company's second-quarter earnings report. While the company reported operating earnings of 24 cents a share, analysts were apparently comparing their estimates to a profit of 22 cents, according to First Call. The eight-analyst consensus estimate called for 22 cents vs. the year-earlier 19 cents. Cendant also said it plans to sell "several non-strategic" operations in the second half for more than $1 billion.

Cleveland-Cliffs (CLF) reported second-quarter earnings of 70 cents a share, beating the two-analyst outlook by a penny but trailing the year-ago $1.48. The company also warned that it expects its second-half earnings to fall below expectations. The three-analyst estimate for 1999 calls for $2.52 a share. Cleveland-Cliffs cited an expected shortfall in sales.

Compuware (CPWR) posted first-quarter earnings of 24 cents a share, ahead of the 15-analyst prediction of 21 cents and above the year-ago 15 cents. The company's chairman backed a 35% to 40% growth rate in 2000 and said he's "very bullish" on the fiscal year's outlook.

Exodus Communications (EXDS) set a 2-for-1 stock split and posted a second-quarter loss of 51 cents a share, a penny narrower than the 15-analyst estimate but wider than the year-ago loss of 36 cents.

General Semiconductor (SEM) reported second-quarter earnings of 14 cents a share, a penny short of the two-analyst view and down from the year-ago 19 cents. The company warned it expects its 1999 earnings to fall short of 1998's 74 cents, citing additional interest charges from the restructuring of a credit agreement. Estimates call for 1999 earnings of 72 cents.

Kimberly-Clark (KMB) posted second-quarter earnings of 72 cents a share, topping both the 12-analyst estimate of 69 cents and the year-ago 58 cents. The company also said it will restate financial results from 1995 through the first quarter of 1999 following a review by the Securities & Exchange Commission. The company said the restatement involves the timing of charges for past restructuring actions and facility closures.

Legato Systems (LGTO) reported second-quarter earnings of 29 cents a share, 4 cents ahead of the 15-analyst expectation and up from the year-ago 9 cents. The company also set a 2-for-1 stock split.

Oakley (OO) reported second-quarter earnings of 15 cents a share, in line with the two-analyst view but below the year-ago 16 cents. The company also said it doesn't see profitability for its footwear group for the remainder of the year and that its sees second-half sales growth falling below the first-half's growth.

Owens-Illinois (OI) posted second-quarter earnings of 61 cents a share, on target with the nine-analyst view but below the year-ago 75 cents. The company also said its third-quarter earnings will be below the year-ago 69 cents due to demand problems overseas. Analysts are calling for 67 cents.

SkyTel Communications (SKYT) reported second-quarter earnings of 8 cents including items vs. a year-ago 22 cents, also including items. The company didn't provide per-share operating figures. SkyTel also set for Sept. 22 a special shareholder vote on its pending merger with MCI WorldCom (WCOM).

Stamps.com (STMP) slipped 1/16 in after-hours trading to 45 3/4 following the company's second-quarter report. The company lost 19 cents a share vs. the year-ago loss of 5 cents. There were no estimates.

Sybase (SYBS) recorded second-quarter earnings of 14 cents a share, beating both the eight-analyst view of 10 cents and the year-ago penny. The company's CEO also said he backed 1999 earnings of 36 cents a share, that he sees the company's 1999 revenue coming flat with 1998 and that he sees revenue in 2000 rising 10% to 15% from 1999.

US Search.com (SRCH) reported a second-quarter loss of 35 cents a share vs. the year-ago loss of 10 cents. There were no estimates.

Verilink (VRLK) reported a fourth-quarter loss of 18 cents a share, 6 cents worse than the single-analyst view and down from the year-ago profit of 6 cents. The company said it will substantially consolidate its existing operations into its Huntsville, Ala., facilities. Verilink expects to record a restructuring charge of $6 million to $8 million to cover costs associated with the move.

Western Digital (WDC) reported a fourth-quarter loss of 90 cents a share, 4 cents better than the 13-analyst forecast. The year-ago loss of $1.84 included a charge; the company didn't provide a per-share operating figure for the period.

In other earnings news:

Upside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Antec (ANTC)	2Q	21c	19c	9c	9
E.W. Blanch (EWB)	2Q	58c	57c	42c	6
Broadcom (BRCM)	2Q	19c	16c	5c	10
BTG (BTGI)	1Q	11c	9c	1c	1
Burr-Brown (BBRC)	2Q	27c	24c	25c	5
Caere (CAER)	2Q	20c	18c	18c	1
Cirrus Logic (CRUS)	1Q	1c	-1c	-2c	4
CommScope (CTV)	2Q	33c	29c	17c	6
Conexant Systems (CNXT)	3Q	24c	19c	-34c	11
CSG Systems (CSGS)	2Q	27c	25c	13c	11
Dollar Tree Stores (DLTR)	2Q	22c	20c	17c	7
Extreme Networks (EXTR)	4Q	5c	3c	-10c	3
Gibraltar Steel (ROCK)	2Q	57c	55c	45c	6
Go2Net (GNET)	3Q	7c	5c	-1c	4
Harmonic (HLIT)	2Q	25c	12c	-25c	6
Hub Group (HUBG)	2Q	34c	33c	27c	6
Hypercom (HYC)	2Q	1c	0c	-3c	1
Ikos Systems (IKOS)	2Q	8c	5c	-56c	1
IMS Health (RX)	2Q	17c	16c	13c	9
Knoll (KNL)	2Q	61c	60c	57c	4
Kronos (KRON)	3Q	47c	37c	28c	4
Laboratory Corp. of America (LH)	2Q	6c	5c	1c	1
MedImmune (MEDI)	2Q	-19c	-22c	-35c	10
Murphy Oil (MUR)	2Q	35c	33c	34c	12
National Data (NDC)	4Q	58c	57c	47c	9
Peregrine Systems (PRGN)	1Q	14c	12c	8c	10
PFF Bancorp (PFFB)	1Q	47c	38c	28c	2
Priority Healthcare (PHCC)	2Q	23c	20c	12c	6
Shaw Industries (SHX)	2Q	48c	38c	27c	8
Silicon Graphics (SGI)	4Q	12c	-5c	-31c	13
Simpson Manufacturing (SSD)	2Q	82c	78c	69c	3
SM&A (WINS)	2Q	19c	18c	16c	3
Software.com (SWCM)	2Q	-10c	-16c	-5c	3
Symantec (SYMC)	1Q	45c	44c	39c	6
20th Century (TW)	2Q	38c	33c	49c	4
Visio (VSIO)	3Q	31c	29c	29c	9
Vivus (VVUS)	2Q	1c	0c	-76c	1
WellPoint Health Networks (WLP)	2Q	$1.03	$1.02	86c	18
Zebra Technologies (ZBRA)	2Q	57c	51c	45c	6

Downside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
American Precision Industries (APR)	2Q	21c	24c	11c	4
HMT Technology (HMTT)	1Q	-43c	-27c	3c	3
SpeedFam-IPEC (SFAM)	2Q	-$1.58	-39c	-$1.69	5
Vantive (VNTV)	2Q	-6c	-5c	4c	6

In-Line Reports
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Activision (ATVI)	1Q	-19c	-19c	-17c	8
Arden Realty (ARI)	2Q	65c	65c	58c	11
Becton Dickinson (BDX)	3Q	38c	38c	37c	18
Budget Group (BD)	2Q	42c	42c	33c	5
Cerner (CERN)	2Q	1c	1c	16c	15
DPL (DPL)	2Q	25c	25c	23c	10
Dun & Bradstreet (DNB)	2Q	40c	40c	23c	3
Gardner Denver (GDI)	2Q	39c	39c	55c	4
i2 Technologies (ITWO)	2Q	11c	11c	9c	25
Metro One Telecommunications (MTON)	2Q	1c	1c	8c	5
Molex (MOLX)	4Q	32c	32c	29c	8
Network Associates (NETA)	2Q	-$1.05	-$1.05	37	17
Onsale (ONSL)	2Q	-60c	-60c	-21c	9
Regions Financial (RGBK)	2Q	63c	63c	56c	16
Stryker (SYK)	2Q	38c	38c	36c	14

Mergers, acquisitions and joint ventures

H&R Block (HRB) said it is considering strategic alternatives for its Option One Mortgage wholesale mortgage business, including a sale of the business or a joint venture. Friedman Billings Ramsey is advising on the matter.

Offerings and stock actions

Ocean Financial (OCFC) announced a 1.4 million-share repurchase plan.

Miscellany

ADC Telecom (ADCT) will replace Nalco Chemical (NLC) in the S&P 500 on July 30. Suez Lyonnaise des Eaux of France is acquiring Nalco in a tender offer that expires that day.

Allied Waste (AW) will replace Browning-Ferris (BFI) in the S&P 500, also on July 30. The Justice Department yesterday approved the companies' merger, which creates the second-largest waste-disposal company.

Hollinger International (HLR) said it ended talks to acquire The New York Observer.

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