Friday's Winners & Losers: S3, Sapient, American Power, CTC Communications - TheStreet

Updated from 3:13 p.m.

Microsoft

(MSFT) - Get Report

said the company and the FBI are investigating a computer break-in in which officials think hackers stole the software-maker's source code. The company has been aggressively attempting to protect its code in litigation with the Justice Department.

The break-in was apparently discovered Wednesday when security employees for the Redmond, Wash.-based company discovered emails being sent to an account in St. Petersburg, Russia. It was originally thought the information being sent was the company's source code. But Microsoft CEO Steve Ballmer said today that the break-in was not very damaging, adding that the hackers saw the source code, but had not been able to compromise it.

Unlike open operating systems such as Linux, Microsoft has gone to great lengths to guard its products' source codes, which it views as a vital part of its intellectual property.

The stock closed at $64.44 yesterday, but it was inactive in preopen trading, trading at $64 on little volume. Microsoft closed today up $3.25, or 5%, to $67.69.

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Mergers, acquisitions and joint ventures

Energy company

Enron

(ENE)

said it's made a proposal to the board of its troubled water services affiliate

Azurix

(AZX)

to provide up to $275 million in financing to take Azurix private at a buyout price of $7 per share. Enron closed up $1.38, or 1.8%, to $78.88.

Lycos

(LCOS)

shareholders have voted in favor of a merger with Spanish Internet company

Terra Networks

(TRRA)

. Lycos closed up 38 cents, or 0.9%, to $41.06; Terra was just shy of solid ground, down 25 cents, or 1.3%, to $19.13.

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Earnings/revenue reports and previews

American Tower

(AMT) - Get Report

reported a loss of 22 cents a share, ahead of the five-broker

First Call/Thomson Financial

estimate for a 23 cent loss. For the same time period last year, the company lost 8 cents. American Tower ended the day up $5.38, or 16.8%, to $37.38.

Beckman Coulter

(BEC)

reported earnings of 93 cents a share, a penny ahead of the 11-broker consensus. The company reported earnings of 82 cents a share for the year-ago period. Beckman closed down $1.13, or 1.6%, to $69.

Church & Dwight

(CHD) - Get Report

, which makes Arm & Hammer (like that baking soda used for brushing your teeth. You don't use baking soda? OK, never mind) products, reported earnings of 32 cents a share, beating the five-broker consensus by a penny. The company reported earnings of 28 cents a share for the year-ago period. C&D closed up $1.06, or 5.8%, to $19.31.

Concord

(CEFT)

reported earnings of 23 cents a share, beating the 11-broker consensus looking for 22 cents a share. At this time last year, the company reported earnings of 17 cents a share. The stock closed up 19 cents, or 0.5%, to $38.19.

Hearst-Argyle

(HTV)

reported earnings of 10 cents a share, beating the two-broker consensus of 7 cents a share. At this time last year, the company reported earnings of 3 cents a share. Hearst-Argyle ended the day down 81 cents, or 4%, to $19.38.

New Jersey Resources

(NJR) - Get Report

reported a loss of 18 cents a share for the fiscal fourth quarter, in line with the six-broker estimate. The company reported a loss of 21 cents a share for this time last year. NJ Resources closed flat at $38.63.

People's Energy

(PGL)

reported a loss of 5 cents a share for the fiscal fourth quarter, beating the seven-broker consensus of 10 cents a share, and better than the 11 cent loss posted for the same time period a year ago. People's Energy was up for the people 56 cents, or 1.7%, to $33.44.

Solutia

(SOI) - Get Report

reported earnings of 24 cents a share, beating the eight-broker consensus looking for 21 cents a share. The company earned 53 cents a share for the same time period last year. Solutia closed up 56 cents, or 4.9%, to $12.13.

United Healthcare

(UNH) - Get Report

reported earnings of $1.08 per share for the third quarter, beating the 14-broker First Call estimate of $1.04 a share. At this time last year, the company earned 81 cents a share. UNH closed up $2.25, or 2.1%, to $109.69.

United Rentals

(URI) - Get Report

reported earnings of 79 cents a share for the third quarter, in line with the seven-broker consensus. The company reported earnings of 60 cents a share for the same time period a year ago. United Rentals ended the trading day down 25 cents, or 1.3%, to $18.56.

Vahli

(VHI) - Get Report

reported earnings of 11 cents a share. Last year, the company reported earnings of 7 cents a share for the same time period. Vahli closed up 19 cents, or 1.6%, to $12.13.

After Thursday's Close

The eagle has landed. The results are in.

JDS Uniphase

(JDSU)

reported after the bell.

Was the news good?

Sure. The fiber-optic company, which is being watched very closely in the wake of the

Nortel

(NT)

and

Lucent

(LU)

blowups, reported pro forma first-quarter earnings of 18 cents a share, besting the First Call/Thomson Financial estimate by two cents. It more than doubled last year's quarter, which came in at 8 cents a share.

Nortel exceeded per share earnings estimates, but fell short on revenue. So, let's dig a little deeper into that report: Revenues came in at $786.5 million, growing 23% over and above the preceding fourth quarter and 171% above the year-ago quarter.

JDS closed up $2.81, or 3.8%, to $77.25; Nortel was down $2.81, or 6.2%, to $42.56; and Lucent was up 31 cents, or 1.5%, to $21.31.

For more on this and other stories, check out the latest headlines from

TheStreet.com.

Amgen Slides After Cutting Sales, Earnings Forecasts

Ultramar Diamond Easily Beats Third-Quarter Estimates

NBC Internet Beats Estimates, Moves Up Profitability Target

EDS Beats Third-Quarter Estimates by a Penny

Ingram Micro Beats Third-Quarter Estimates by a Penny

Sapient Meets Third-Quarter Estimates

StorageTek Beats Lowered Third-Quarter Estimates

7-Eleven

(SE) - Get Report

: 3Q earnings per share of 35 cents, BELOW the 36 cent estimate and last year's 39 cents. The stock closed down 13 cents, or 1.1%, to $11.25.

Airgas

(ARG)

: 2Q EPS of 16 cents a share, IN LINE with the 16 cent analyst estimate and the year-ago quarter. Airgas floated up 50 cents, or 7.9%, to $6.81.

Allegheny Energy

(AYE)

: 3Q EPS of 69 cents a share, ABOVE the 65 cent estimate and last year's 63 cents. Allegheny closed up 75 cents, or 1.9%, to $39.44.

Allmerica Financial

(AFC) - Get Report

: 3Q EPS of $1.48, ABOVE the $1.47 estimate and the year-ago $1.39. Allmerica ended the day down $1.06, or 1.7%, to $61.81.

American Power

(APCC)

: 3Q EPS of 22 cents a share, BELOW the 33 cent estimate and the year-ago 32 cents. American Power closed down $8.50, or 40%, to $12.75.

Buy.com

(BUYX)

: 3Q loss per share of 16 cents, ABOVE the 18 cent loss estimate and the year-ago 27 cents. Buy.com closed up 22 cents, or 9.6%, to $2.50.

Clarent

(CLRN)

: pro forma 3Q EPS of 4 cents a share, ABOVE the 3 cent loss estimate and last year's 9 cent loss. Clarent closed up $4, or 14.4%, to $31.75.

Electronic Data Systems

announced third-quarter earnings of 59 cents a share, beating the First Call/Thomson Financial estimate by a penny and topping the year-ago quarter, which came in at 51 cents a share. The Texas-based computer services company and competitor to

IBM

(IBM) - Get Report

had relatively flat third-quarter sales, coming in at $4.75 billion vs. the year-ago $4.71 billion. EDS closed up $3.94, or 8.8%, to $48.81; IBM was up 94 cents, or 1%, to $93.69.

MEMC Electronic Materials

(WFR)

: 3Q loss per share of 3 cents, ABOVE the 11 cent loss estimate and last year's 48 cent loss. MEMC closed up 38 cents, or 3.9%, to $10.06.

MicroStrategy

(MSTR) - Get Report

: 3Q loss per share of 37 cents a share, ABOVE the analyst estimate of a 53 cent loss, but worse than last year's 17 cent loss. The company's figures do not include a one-time charge related to shareholder lawsuits. Despite the losses, the company said it expects full-year revenue to increase by at least 40% over 1999. It also said that 2001's revenues will increase by the same amount, giving the guidance that by the end of 2001, the company will break even in net operating income. MicroStrategy ended the day up $1.38, or 5.98%, to $24.38.

NBC Internet

(NBCI)

: pro forma 3Q loss per share of 88 cents, ABOVE the analyst call for a $1 loss, but worse than last year's pro forma loss of 87 cents. NBC Internet closed up 78 cents, or 15.9%, to $5.69.

OpenTV

(OPTV)

: 3Q loss per share of 6 cents a share, ABOVE the 7 cent loss estimate and the year-ago 8 cent loss. The company, which makes television interactive, said that it sees fourth-quarter revenues coming in between $21 and $22 million, with a per-share loss between 4 cents and 6 cents a share. For what it's worth, the First Call/Thomson Financial estimate is a 4 cent loss. OpenTV closed up 75 cents, or 2.97%, to $26.

Plexus

(PLXS) - Get Report

: 4Q EPS of 31 cents a share, ABOVE the 30 cent estimate and the year-ago 20 cents. Plexus ended the day down $7.63, or 11.4%, to $59.13.

S3

(SIII)

: 3Q loss per share of 40 cents, BELOW the 29 cent loss estimate. The company also made some predictions about 2001, telling the street that it expects revenues to come in at $400 million, which is 150% growth over the previous year. S3 closed up $1.56, or 23.4%, to $8.25.

Sapient

(SAPE)

: pro-forma 3Q EPS of 12 cents a share, IN LINE with the 12 cent estimate and above the year-ago 8 cents. Revenues rose from $73 million in the year-ago quarter to $138 million in this one. Sapient knew what it was doing; it closed up $4.25, or 13.7%, to $35.25.

Sawtek

(SAWS)

: 4Q EPS of 42 cents a share, ABOVE the 37 cent estimate and the year-ago 21 cents. Sawtek closed up $10.81, or 26.1%, to $52.31.

Storagetek

(STK) - Get Report

: 3Q EPS of 8 cents a share, ABOVE the 3 cent estimate and the year-ago loss of 16 cents a share. Storagetek ended the day up 56 cents, or 6.1%, to $9.75.

Utstarcom

(UTSI) - Get Report

: pro forma 3Q EPS of 14 cents a share, ABOVE the 11 cent estimate and the year-ago 12 cents. Utstarcom closed up $2.06, or 11.5%, to $20.06.

Western Digital

(WDC) - Get Report

: 1Q loss per share of 23 cents, ABOVE the analyst estimate of a 32 cent loss and the year-ago $1.11 loss. The stock closed flat at $6.

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Analyst Actions

Credit Suisse First Boston

slashed its ratings on four information technology companies this morning, for pretty obvious reasons -- there isn't enough money to go around anymore to build out various Internet-related concerns.

The company cut its ratings to buy from strong buy on

Sapient

,

Razorfish

(RAZF)

,

Eloyalty

(ELOY)

, and

marchFirst

(MRCH)

.

marchFirst missed estimates

by a mile when it reported third-quarter earnings Tuesday, and the stock was roundly destroyed in trading this week. All of these stocks are way, way off their 52-week highs, and all but Sapient already trade in the single digits.

"The downgrades imply a scenario of 'dead money,' rather than significant downside price risk, through the remainder of the year for these already washed-out names," the company said.

And away we go! Sapient, as noted above, closed up $4.25, or 13.7%, to $35.25; Razorfish closed flat at $4.44; Eloyalty was down 56 cents, or 5.7%, to $9.38; and marchFIRST was up 50 cents, or 11.4%, to $4.91.

Upgrades

American General

(AMG) - Get Report

: UP to strong buy from buy at

UBS Warburg

. American General ended the day up $4.06, or 7.7%, to $57.06.

Beverly Enterprises

(BEV)

: UP to buy from hold at

ING Barings

. Beverly closed up 31 cents, or 6.3%, to $5.25.

Ingram Micro

(IM)

: UP to outperform from neutral at

Morgan Stanley Dean Witter

. Ingram closed up $2.69, or 20.3%, to $15.94.

JDS Uniphase

:

W.R. Hambrecht

upped price target to $180 from $140; raised fiscal 2001 earnings per share estimates to 80 cents from 69 cents. CSFB upped 2001 estimates to 80 cents from 69 cents; 2002 estimates to $1.10 from $1.00. As noted above, JDS closed up $2.81, or 3.8%, to $77.25.

Learning Tree

(LTRE)

: UP to buy from accumulate at

Merrill Lynch

. The Tree closed up $2.75, or 9.3%, to $32.38.

Trico Marine

(TMAR)

: UP to strong buy from hold at ING Barings. Trico was down 38 cents, or 2.4%, to $15.50.

Varian Semiconductor

(VSEA)

: UP to strong buy from buy at UBS Warburg. Varian closed down $3.56, or 15.2%, to $19.94.

Downgrades

Acxiom

(ACXM)

: DOWN to accumulate from buy at

Bear Stearns

. Acxiom closed down $1.94, or 4.6%, to $40.25.

American Home Products

(AHP)

: DOWN to neutral from outperform at

Salomon Smith Barney

. AHP ended the day down 44 cents, or 0.7%, to $63.06.

Amgen

(AMGN) - Get Report

: earnings per share estimates for 2000 to 2003 lowered to $1.06, $1.25, $1.41 and $1.71 from $1.08, $1.26, $1.46, and $1.78 at Merrill Lynch. Amgen closed down $9.19, to 13.4%, to $59.31.

Braun Consulting

(BRNC)

: DOWN to outperform from buy at Salomon Smith Barney. Braun closed down 38 cents, or 4.7%, to $7.56.

Charles E. Smith Residential Realty

(SRW)

: DOWN to accumulate from hold at

Prudential Securities

. The stock closed up 19 cents, or 0.4%, to $43.88.

CTC Communications

(CPTL)

: DOWN to buy from strong buy at ING Barings. CTC closed down $3.63, or 26.6%, to $10.

Digex

(DIGX)

: 12-month price target DOWN to $75 from $95 at

PaineWebber

. Digex ended the day down $4.25, or 10.3%, to $37.

Electronic Data Systems

(EDS)

: DOWN to neutral from outperform at Morgan Stanley Dean Witter. EDS closed up $3.94, or 8.8%, to $48.81.

Hearst Argyle

(HTV)

: DOWN to neutral from accumulate at Merrill Lynch. The stock closed down 81 cents, or 4%, to $19.38.

Kellogg

(K) - Get Report

: 2001 earnings target DOWN to $1.30 from $1.75 at PaineWebber. Kellogg ended the day up 69 cents, or 2.8%, to $25.

Network Peripherals

(NPIX)

: DOWN to sell from hold at Prudential Securities. Network Peripherals closed down $2.63, or 19.6%, to $10.75.

R.H. Donnelley

(DNY)

: lowered 2000 earnings estimates to $2.22 a share from $2.45 a share and 2001 EPS estimates to $2.35-$2.40 from $2.70 at Merrill Lynch. R.H. closed down 50 cents, or 2.1%, to $23.

Sinclair Broadcasting

(SBGI) - Get Report

: DOWN to neutral/accumulate from accumulate/buy at Merrill Lynch. Sinclair closed down 63 cents, or 6.8%, to $8.63.

Starbucks

(SBUX) - Get Report

: DOWN to outperform from strong buy at Morgan Stanley Dean Witter. The coffee stock ended the day down $1.25, or 3.1%, to $39.75.

Stoneridge

(SRI) - Get Report

: DOWN to neutral from strong buy at Morgan Stanley Dean Witter. Stoneridge closed down 25 cents, or 2.5%, to $9.69.

Texaco

(TX) - Get Report

: DOWN to accumulate from hold at Prudential Securities. Texaco closed down $1.19, or 2.1%, to $56.75.

Transactions Systems Architects

(TSAI)

: DOWN to buy from strong buy at CSFB. TSA ended the day down $2.31, or 15.4%, to $12.69.

USX-Marathon Group

(MRO) - Get Report

: DOWN to accumulate from hold at Prudential Securities. The stock closed down 38 cents, or 1.4%, to $26.25.

Valero Energy

(VLO) - Get Report

: DOWN to accumulate from hold at Prudential Securities. Valero was down 13 cents, or 0.4%, to $32.19.

WorldCom

(WCOM)

: DOWN to hold from strong buy at ING Barings. WorldCom was up 31 cents, or 1.4%, to $22.06 for the day.

Initiations

Human Genome Sciences

(HGSI)

: NEW strong buy at

CIBC Markets

. 12-month price target: $130. The stock closed up $6.50, or 7.96%, to $88.13.

Lincoln National

(LNC) - Get Report

: NEW hold at UBS Warburg. Lincoln honestly closed up 81 cents, or 1.8%, to $46.44.

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Offerings and stock actions

Human Genome Sciences

priced a secondary offering of 11 million shares at $75 a share, with the proceeds earmarked for research and development. As noted above, the stock was up $6.50, or 7.96%, to $88.13.

After Thursday's Close

Art Technology

(ARTG)

, an Internet software maker, filed for an additional public offering of 4 million shares, designed to raise $331.2 million. The deal ups the number of outstanding shares in the company to 71.8 million and was underwritten by four brokers:

Credit Suisse First Boston

,

Goldman Sachs

,

Chase

and

U.S. Bancorp Piper Jaffray

. Art Tech ended the day down $18.88, or 22.3%, to $65.69.

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Miscellany

After Thursday's Close

No, it's not that scene from

Goonies

where a pre-

Rudy

Sean Astin yells, "I'm takin' 'em back! I'm takin' them all back!" But it is a good excuse to slip a pop culture reference into a story about

John Hancock Financial

(JHF)

authorizing a $500 million share buyback program. The Boston-based financial company will be purchasing its stock, but isn't really tied to a specific time or method. So that means the company can buy shares through private deals or in the public market. The big John Hancock ended the day up 69 cents, or 2.4%, to $29.56.

Telecommunications giant

SBC Communications

(SBC)

said it has agreed with the

Federal Communications Commission

to either sell

SecurityLink

, its security and fire detection division, or pay $1 million to the U.S. government. The FCC charged Ameritech, the unit of SBC that owns SecurityLink, with violations of the 1996 Telecommunications Act. SBC closed up $1.88, or 3.4%, to $56.31.

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By the Numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

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