Dell's Warning Roils the After-Markets

Dell (DELL) shook up Wall Street this evening with a warning that its third-quarter earnings will be hurt by higher-than-expected memory-chip prices.

The computer giant said it sees the memory-chip problem as temporary, but nevertheless it will damage third-quarter operating margins. Dell is slated to report third-quarter results Nov. 11; the current 28-analyst First Call/Thomson Financial estimate calls for earnings of 20 cents a share vs. the year-ago 14 cents.

Dell last traded on Island ECN at 37 9/16, down 3 3/4 from its composite close.

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Lay-deees and gentlemen! In this corner we have the World Wrestling Federation (WWFE) IPO, weighing in at 10-million shares priced at a hefty $17 a share. (See table below.)

And in this corner, we have the doyenne of domesticity herself, Martha Stewart (MSO) with 7.2 million shares, weighing in at an impressive $18 a share, top range. (See table below.)

Apparently this rough and tumble stock market isn't enough to frighten these tough guys -- and girls -- away and they look like they'll come out swinging. Judging from recent volatile days, the WWF may need to put its fighting skills to use and Martha may need a headlock lesson or two to get in shape.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 96.57 +1% 10,116.28 +10.2% S&P 500 6.72 +0.5% 1254.13 +2.0% Nasdaq 42.68 -1.6% 2689.15 +22.6% Russell 2000 5.80 -1.4% 408.90 -3.1% TSC Internet 15.24 +2.2% 669.86 +64.9% BOND CHANGE PRICE YIELD 30-Year Treasury 22/32 97 11/32 6.324%

In other post-close news (earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

American Retirement (ACR) said it sees third-quarter earnings falling below expectations by at least 10 cents a share as it focused on buying, rather than building retirement communities. The 12-analyst estimate calls for 23 cents a share.

Aspect Telecommunications (ASPT) reported a third-quarter loss of less than a penny a share, before charges, narrower than the 11-analyst expected loss of 21 cents a share, but down from year-ago earnings of 28 cents a share excluding items.

Citrix Systems (CTXS) posted third-quarter earnings of 35 cents a share excluding charges, a penny better than the nine-analyst estimate of 34 cents and up from a year-ago 23 cents. All figures reflect a 2-for-1 stock split in March 1999.

Concentric Network (CNCX) posted a third-quarter loss of 65 cents a share including items, narrower than the 11-analyst estimate of an 11-cent loss per share. The year-ago loss of 89 cents a share also includes charges.

Fiserv (FISV) reported third-quarter earnings of 28 cents a share, a penny better than the 10-analyst estimate and up from a year-ago 23 cents a share. The figures were adjusted to reflect a 3-for-2 stock split effective in April 1999.

Imperial Bancorp (IMP) reported third-quarter earnings of 35 cents a share, including a charge. The nine-analyst estimate was for 35 cents a share, and the year-ago loss was 7 cents a share. No per share figures from operating income were provided.

Lattice Semiconductor (LSCC) posted second-quarter earnings of 23 cents a share before items, above the 18-analyst estimate of 19 cents a share, and up from a year-ago 21 cents a share. All figures were adjusted to reflect a 2-for-1 stock split paid on Sept. 16.

Liquid Audio (LQID) reported a third-quarter loss of 28 cents a share, excluding charges, narrower than the three-analyst estimate of a 34 cent loss and wider than a pro forma year-ago loss which excludes charges.

Network Associates (NETA) posted third-quarter results of 10 cents a share, a penny better than the 15-analyst estimate of 9 cents. The year-ago loss of 11 cents includes charges.

Raynoier (RYN) posted third-quarter earnings of 61 cents a share including charges. The single-analyst estimate calls for 60 cents a share. The year-ago figure of 45 cents a share also includes charges.

Select Comfort (AIRB) reported a third-quarter loss of 20 cents a share, a penny wider than the three-analyst estimate and down from year-ago pro forma 11 cents a share.

Sonic (SONC) reported fourth-quarter earnings of 48 cents a share, better than the 10-analyst estimate of 46 cents a share, and up from a year-ago 38 cents a share. The company also said it authorized the repurchase of an additional $7 million in stock, bringing its total authorization to $9 million, according to Dow Jones.

Tupperware (TUP) reported third-quarter earnings of 6 cents a share, better than the five-analyst estimate of 2 cents a share, and a year-ago loss of 11 cents a share. Tupperware said it sees flat fourth-quarter sales and a low 20% increase in earnings.

Vitesse Semiconductor (VTSS) posted fourth-quarter earnings of 26 cents a share, a penny better than the 17-analyst estimate and up from 19 cents a year ago. The company said the figures reflect a 2-for-1 stock split effected on May 26, 1998. Vitesse also said results for periods prior to the fourth quarter ended Sept. 30, 1999, were retroactively restated to account for the acquisitions of Serano Systems Corp. and XaQti Corp., which were completed in fiscal 1999.

Zomax (ZOMX) posted third-quarter earnings of 45 cents a share, a penny better than the three-analyst estimate and up from 5 cents a year ago. The company said results are pro forma for acquired companies as if they were taxable entities.

Zoran (ZRAN) posted third-quarter earnings of 17 cents a share, above the five-analyst estimate and up from a year-ago 4 cents a share. Zoran said it expects a minor delay in some of its shipments due to the earthquake in Taiwan but does not expect them to have a material effect on its fourth-quarter results.

In other earnings news:

Upside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Burr-Brown (BBRC)	3Q	33c	30c	20c	5
CommScope (CTV)	3Q	38c	35c	23c	6
DSP Group (DSPG)	3Q	44c	41c	35c	4
Eclipse Surgical (ESTI)	3Q	-16c	-17c	-46c	4
Footstar (FTS)	3Q	83c	81c	74c	7
Gibralter Steel (ROCK)	3Q	56c	52c	41c	6
Integrated Measurement (IMSC)	3Q	20c	18c	-45c	5
Keystone Financial (KSTN)	3Q	49c	48c	50c	5
Kmet (KMET)	2Q	23c	16c	1c	6
Startec Global (STGC)	3Q	-1.19c	-1.24c	-67c	5
Univision (UNV)	3Q	19c	15c	4c	8
WebTrends (WEBT)	3Q	6c	4c	1c	6
Xircom (XIRC)	4Q	53c	50c	33c	6

Downside Surprises
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Microstrategy (MSTR)	4Q	9c	11c	5c	7
Wynn's International (WN)	3Q	36c	37c	31c	1

In-Line Reports
Company	Qtr	EPS	First Call View	Yr. Ago EPS	Number of Analysts
Ametek (AME)	3Q	47c	47c	16c	3
Prodigy (PRGY)	3Q	-39c	-39c	-39c	4

Mergers, acquisitions and joint ventures

Bell Atlantic (BEL) said its wireless unit is in talks with Iusacell (CEL) involving a possible combination of properties in northern New Mexico.

Fairfield Communities (FFD) said it launched a strategic review under its new CEO that could include acquisitions, alliances or a sale of the company.

Microsoft (MSFT) said it has formed a joint venture with Telefonas de Mexico (TMX) to create a Spanish language Internet portal.

Nortel Networks (NT) agreed to acquire Clarify (CLFY) for $2.1 billion in an all-stock deal. Nortel will offer Clarify shareholders 1.3 Nortel shares for each share of Clarify.

Offerings and stock actions

Company	Offering Price	Range; No. of Shares	Lead Underwriter
Satyam Infoway (SIFY)	$18/ADR	$12-$14; 4.175 million	Merrill Lynch/Morgan Stanley
Martha Stewart Living Omnimedia (MSO)	$18	$16-$18; 7.2 million	Morgan Stanley Dean Witter
World Wrestling (WWFE)	$17	$14-$16; 10 million	Bear Stearns

Armor Holdings (AH) said its board approved a share buyback of up to 10% of its common stock.

Crossroads Systems said it is boosting the expected price range of its IPO to $14 to $16 a share, from $11 to $13, and the number of shares it plans to offer to 3.75 million from 3.5 million. The company provides routers for network servers and storage facilities.

Miscellany

American Home Products (AHP) said it was making progress on numerous experimental products including possible novel treatments for diabetes and osteoporosis. AHP said it expects to file for marketing approval for numerous drugs over the next two years. The company also said it believes its total liability for its fen-phen diet drug litigation is covered by its reserves.

Glaxo Wellcome (GLX) is set to announce a breakthrough in gene research on common diseases including adult-onset diabetes and psoriasis, The Wall Street Journal will report Tuesday, according to CNBC.

Rite Aid's (RAD) CEO Martin Grass resigned. The company said COO and president Timothy Noonan will take over as interim CEO. Rite Aid also said it would restate its 1997, 1998 and 1999 financial statements and had received a one-year extension on $2.7 billion in credit facilities. The company said it will receive a $300 million investment from Leonard Green & Partners.

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