will start a two-day analyst meeting Tuesday. Few surprises are likely to emerge, but expect vaguely optimistic projections. For the full story on what to look for, click
here. As part of the closely watched extravaganza, Cisco issued a slew of press releases detailing supply deals and arrangements with the likes of
Earnings Reports & Warnings
expects third-quarter revenue to exceed $40 million. The company plans to report its quarterly financial results in the second half of January. Analysts are calling for revenue of $37 million, according to First Call.
said fourth-quarter earnings were better than analysts were expecting, but the company lowered its revenue outlook for 2002. Excluding charges, the software company earned $20.4 million, or 18 cents a share, in the most recent quarter. Analysts had been expecting 4 cents a share. But the company said it expects only 5% revenue growth in 2002, somewhat below expectations, and said it doesn't expect a recovery until the year's second half.
expects to break even on a free cash flow basis in 2002. The company expects its
unit to post earnings before interest, taxes, depreciation and amortization of about $1.6 billion in 2001. Also for 2001, Sprint expects the PCS Group to generate an operating loss of around $600 million. In 2002, the PCS Group will likely need about $1.8 billion in cash. Sprint plans to meet the funding requirement through the issuance of additional debt and the monetization of assets.
Mergers, Acquisitions & Joint Ventures
RF Micro Devices
agreed to acquire
global positioning system development operation. Terms of the transaction weren't disclosed.
agreed to buy
for stock worth $20.55 a share, or $769 million. Both companies make technology used to design computer chips. Synopsys also said it earned $24.5 million, or 39 cents a share, before items in the fourth quarter on revenue of $183.6 million. The consensus estimate had been 36 cents a share. But the company lowered its first-quarter guidance, saying it now expects to earn 24 cents to 28 cents before items compared with a consensus estimate of 34 cents.
said the Food and Drug Administration approved the company's premarket approval application for the BioGlue surgical adhesive, which is used to help surgeons control bleeding when operating on blood vessels.
reached a comprehensive recapitalization and financial restructuring plan with Forstmann Little and a group of secured lenders. The plan would eliminate at least 95% of the company's $2.9 billion of bond debt and the associated $300 million of annual interest expense. After the transaction closes, Forstmann, which reached a similar arrangement last week with
, will own about 45% of the outstanding common equity of McLeodUSA. One component of the agreement calls for McLeodUSA to sell its telephone directory publishing business to Forstmann for $535 million. The company left open the possibility of a Chapter 11 filing, if necessary, to complete the recapitalization.
signed a contract to provide engineering support and other services to
at a New York fuel cell research site. In October, the two companies formed a strategic alliance to speed up the commercialization of fuel cell technology, giving GM 24% ownership of the proton exchange membrane fuel cell system designer.
agreed to lease fiber in several cities to
. Sprint will lease fiber-optic infrastructure in Boston, Los Angeles, Chicago, Dallas, Houston and other cities starting in the second quarter of 2002.