Updated from 12:58 p.m. EDT

Lehman Brothers pared its third-quarter revenue forecast for

Intel

(INTC) - Get Report

, the world's No. 1 chipmaker, two days ahead of the company's midquarter update. The brokerage anticipates that Intel will lower the top end of its guidance to $6.7 billion from its previous $6.9 billion. Lehman also expects Intel to cut its third-quarter earnings estimate by several cents, citing among other things a preponderance of lower-end microprocessor sales. Analysts polled by First Call currently expect the company to earn 13 cents a share in the third quarter.

Semiconductor equipment maker

KLA-Tencor

(KLAC) - Get Report

reportedly reaffirmed its first-quarter profit forecast Tuesday according to a

Reuters

report. The San Jose, Calif.-based company said at the SG Cowen Annual Technology Conference that it expects to earn 25 cents to 26 cents a share on revenue of $370 million to $380 million, the news service reported. The results would include a one-time gain of 3 cents, the company said. Analysts polled by research firm First Call/Thomson Financial were expecting the company to post a net profit of 26 cents a share.

Prudential Securities lowered its investment rating on

Citigroup

(C) - Get Report

to sell from hold citing diminishing earnings results and increased legal risk as federal regulators probe its corporate governance. Prudential also cut its price target on the financial services company to $28 from $42. The company could also suffer from its exposure to bankrupt companies

Enron

and

WorldCom.

Citigroup's shares tumbled nearly 10% to $29.50.

Bristol-Myers Squibb

(BMY) - Get Report

and partner

Otsuka Pharmaceuticals

said U.S. drug regulators issued an approvable letter for the schizophrenia drug Abilify. In clinical studies, Abilify has proven to cause fewer side effects than other drugs for the treatment of schizophrenia. If approved, it would compete with drugs like Zyprexa from

Eli Lilly

(LLY) - Get Report

and Risperdal from

Johnson & Johnson

(JNJ) - Get Report

.

UAL

(UAL) - Get Report

, parent company of United Airlines, elected Glenn F. Tilton chief executive, chairman and president, replacing John W. Creighton, who is retiring. The nation's No. 2 carrier said in August that unless it can improve its financial situation significantly in the near term, that it would be forced to file for Chapter 11 bankruptcy protection in the fall. The Chicago-based airline been plagued by huge debts, an industrywide slump in demand, lower fares and revenue, and overall weakness in the economy in the wake of the terrorist attacks on Sept. 11. Tilton was the chairman and CEO at

Texaco

prior to its merger with

Chevron

and served as the interim chairman at

Dynegy

(DYN)

, helping the energy trader stabilize its financial position. UAL's shares were up 6.6% to $3.06.

Luxury bag maker

Coach

(COH)

said Tuesday that it expects first-quarter earnings to come in above Wall Street expectations, citing stronger sales of its handbags and accessories. The New York-based company now sees earnings of at least 21 cents a share with sales rising to $185 million to $190 million, compared with last year's 14 cents a share on $150.7 million in sales. Analysts were predicting 18 cents a share, according to First Call. The company also raised guidance for fiscal 2003, saying it would post a net profit of $1.20 a share on revenue of $835 million. Analysts had predicted $1.15 a share.

TiVo

(TIVO) - Get Report

said it is lowering its monthly fee by 50% to $4.95 per month from $9.95 per month for current and future TiVo users who subscribe to the service through the DirecTV home satellite service. DirecTV will make the TiVo service free to its highest-paying video customers, says a DirecTV spokesman, and will drop the $249 "lifetime subscription" option. Cutting the subscription price discount is likely to boost subscriptions to TiVo during the all-important holiday season, say outsiders. TiVo's shares fell 24 cents to trade at $3.86 Tuesday, down 5.9% from the company's 52-week high.

Consolidated Freightways

(CFWYE)

the 73-year-old trucking company that has struggled with a credit crunch exacerbated by the Sept. 11 attacks, said it will liquidate through a chapter 11 bankruptcy, putting 15,000 employees out of work. The company had been trying to restructure through negotiations with bank and real estate lenders but said the efforts were unsuccessful and it doesn't have the money to stay in business. Two subsidiaries, CF AirFreight and Canadian Freightways, will continue operating and their employees won't be laid off. Employees at the Vancouver-based carrier's other units were told not to report to work Tuesday.

Cardiac and vascular device maker

Guidant

(GDT)

received its first regulatory approval for its Achieve drug-coated coronary stent, but added that the product won't be available until a legal dispute is resolved. After a review by the Medicines Control Agency and British Standards Institute, European CE Mark approval was granted, the company said. The heart disease-fighting Achieve stent system is a tiny wire mesh tube coated with drugs to keep reopened arteries from clogging.

The commercial launch of the Achieve system is being delayed, however, by a dispute between Guidant and rival device maker

Boston Scientific

(BSX) - Get Report

, which challenged Guidant's right to sell the stent through a distribution agreement with Cook. In June, a judge rejected the distribution agreement. Subsequently, Guidant announced plans to acquire Cook for stock worth as much as $3 billion. Shares of Guidant were down 1.1% to $36.39 Friday on the

New York Stock Exchange

.

CSG Systems

(CSGS) - Get Report

said it acquired

IBM's

(IBM) - Get Report

telecommunications billing operation for an undisclosed amount of cash. The IBM service, based on its eServer iSeries e-business management servers, serves 35 customers in the cable, mobile and wireline telephony markets. CSG and IBM will work together to make CSG's Kenan/BP billing platform and its Unix-based corporate computers.

Multimedia Games

(MGAM)

, a provider of casino and gaming technology for Native American bingo halls, disclosed that one of its former directors has been implicated in a securities fraud investigation. The Austin, Texas-based company said it learned last week that a group of individuals and investment banking firms have been accused of defrauding investors by manipulating trading of Multimedia's shares in 1996 and 1997. Neither the company nor any of its current officers or directors are involved in the investigation.