Compaq Reports Loss, Sees 8,000 Jobs Cut in Big Restructuring

Compaq (CPQ) reported a second-quarter loss of 10 cents a share, a penny narrower than the 30-analyst First Call estimate. The company lost $2.33 a share in the year-ago period, including charges for its acquisition of Digital Equipment; First Call reports a year-ago operating profit of 2 cents a share. Compaq set plans for a major restructuring, including the elimination of 8,000 jobs. The struggling PC giant will take a third-quarter charge of $700 million to $900 million for the revamping. Reuters said Compaq shares were unchanged after hours, having closed at 25 15/16.

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

Earnings/revenue reports and previews

AHL Services (AHLS) posted second-quarter earnings of 30 cents a share. Before goodwill amortization associated with acquisitions, the company said it made 36 cents. The seven-analyst forecast called for operating earnings of 28 cents vs. the year-ago 18 cents.

American Italian Pasta (PLB) reported third-quarter earnings of 35 cents a share, in line with the four-analyst outlook and up from the year-ago 27 cents. The company said it expects fourth-quarter revenue growth to exceed third-quarter levels.

Energen (EGN) reported a break-even operating result for its third quarter, missing the five-analyst estimate by 3 cents and matching the year-ago result. But Energen said it expects its fiscal 1999 earnings to exceed the fiscal 1999 estimate of $1.27 a share, citing its hedge position and the strength of its utility operations.

Oak Technology (OAKT) reported a fourth-quarter loss of 39 cents a share vs. the year-ago loss of 12 cents, both on items. The company provided no per-share operating results and there were no estimates. Oak also approved a buyback of up to 4 million shares over the next year.

Varian Medical Systems (VAR) reported third-quarter earnings of 36 cents a share, a penny short of the three-analyst expectation but up from the year-ago 29 cents. The company said it expects fiscal 1999 revenue growth to be in the high single digits, citing increased sales of its cancer therapy systems and X-ray tubes.

Whitman (WH), a distributor of PepsiCo (PEP) products, said it expects to take a variety of second-quarter charges and gains, netting out to an after-tax charge of $59.5 million.

In other earnings news:

Upside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Alpharma (ALO)	2Q	28c	27c	21c	6
Andersons (ANDE)	2Q	90c	85c	80c	1
Ask Jeeves (ASKJ)	2Q	-42c	-45c	-9c	1
Belo (BLC)	2Q	26c	24c	24c	12
Callaway Golf (ELY)	2Q	35c	34c	30c	9
CBL & Associates (CBL)	2Q	75c	72c	65c	10
Century Aluminum (CENX)	2Q	-12c	-17c	40c	3
Echo Bay (ECO)	2Q	-7c	-8c	-6c	9
E-Loan (EELN)	2Q	-30c	-44c	-7c	2
Great Lakes Chemical (GLK)	2Q	73c	69c	64c	11
Juno Online Services (JWEB)	2Q	-56c	-58c	N/A	2
LandAmerica Financial (LFG)	2Q	88c	79c	$1.42	3
MasTec (MTZ)	2Q	43c	40c	33c	6
Maximus (MMS)	3Q	36c	33c	23c	5
Micro Warehouse (MWHS)	2Q	33c	31c	31c	4
Nationwide Financial (NFS)	2Q	75c	72c	62c	20
Phoenix Investment Partners (PXP)	2Q	15c	13c	11c	1
Province Healthcare (PRHC)	2Q	21c	20c	16c	9
Questar (STR)	2Q	21c	18c	17c	11
Russell (RML)	2Q	18c	17c	18c	7
Scitex(SCIXF)	2Q	26c	11c	21c	4
Skechers (SKX)	2Q	20c	18c	16c	2
Spieker Properties (SPK)	2Q	85c	81c	73c	12
Starmedia (STRM)	2Q	-43c	-49c	-39c	4
Sunburst Hospitality (SNB)	2Q	17c	16c	12c	1
USEC (USU)	4Q	64c	62c	N/A	5
Wisconsin Energy (WEC)	2Q	42c	37c	25c	8
World Access (WAXS)	2Q	16c	14c	22c	8
ZDNet (ZDZ)	2Q	1c	0c	-4c	5

Downside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Mylex (MYLX)	2Q	-9c	-2c	-10c	2
National Fuel (NFG)	3Q	30c	46c	49c	8
National Steel (NS)	2Q	-11c	-1c	56c	8
Sealed Air (SEE)	2Q	40c	43c	36c	9
SS&C Technologies (SSNC)	2Q	-16c	-3c	9c	2
Synthetic Industries (SIND)	2Q	81c	88c	87c	1

In-Line Reports
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Burlington Coat Factory (BCF)	4Q	13c	13c	11c	6
Geon (GON)	2Q	55c	55c	20c	6
Hearst-Argyle Television (HTV)	2Q	15c	15c	39c	3
Kimco Realty (KIM)	2Q	88c	88c	73c	14
Memberworks (MBRS)	4Q	16c	16c	9c	5
NPC International (NPCI)	1Q	27c	27c	25c	4
Peapod (PPOD)	2Q	-28c	-28c	-26c	6
Sempra Energy (SRE)	2Q	40c	40c	45c	8

Mergers, acquisitions and joint ventures

Apple (AAPL) agreed to invest $100 million in a Samsung Electronics unit, looking to ensure a supply of flat-panel displays for Apple's new notebook computers.

BB&T (BBT) agreed to buy Premier Bancshares (PMB) in a stock deal valued at $624.1 million.

Offerings and stock actions

Neuberger Berman said its principals voted to take the money-management firm public, releasing no other details as yet. The firm, with $56 billion in assets under management, intended to go public last year but canceled the plans in October amid market turmoil. Back then it planned to offer 15% of the firm to raise up to $300 million.

Sawtek (SAWS) set a 2-for-1 stock split for shareholders of record Aug. 9. The company also named Gary Monetti CEO and selected Kimon Anemogiannis, vice president-operations, to replace him as president and COO. Monetti replaces company founder Steven Miller, who will remain chairman.

Timberland (TBL) set a 2-for-1 stock split, effective Sept. 15 for shareholders of record Aug. 31.

Miscellany

Carnival Cruise Lines (CCL) raised to 108 from 62 the number of sexual assaults committed on its ships, saying the new count includes 22 charges of rape made by passengers or crew.

The International Monetary Fund approved a new $4.5 billion loan for Russia.

News Corp.'s (NWS) HarperCollins Publishers unit said it would close the distribution center in Dresden, Tenn., and the back-office operations in Fairfield, N.J., that it acquired in buying William Morrow and Avon Books. The closings, affecting about 100 employees, are to occur by Dec. 31.

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