Updated from 10:40 a.m. EST

Lockheed Martin

(LMT) - Get Report

reported fourth-quarter earnings, excluding items, of 49 cents a share, a penny ahead of the consensus estimate. Including items, the defense contractor lost $3.49 a share, reversing a profit of 21 cents in the year-earlier period. Sales rose slightly, to $7.33 billion from $7.32 billion. For 2002, Lockheed forecast earnings from continuing operations of $2.45 to $2.50 a share. Analysts are looking for earnings of $2.17. The company expects earnings to grow about 10% in 2003 from the projected 2002 level.

Earnings Reports & Outlooks

Cerner

(CERN) - Get Report

beat analysts' expectations by a penny, posting fourth-quarter earnings of 30 cents a share, up from 21 cents in the year-ago period. Wall Street had been expecting 29 cents, according to Thomson Financial/First Call. Revenue for the quarter was $151.8 million, up 27% from $119.6 million a year ago. The company also expects earnings of 25 cents to 26 cents for the first quarter.

Exelon

(EXC) - Get Report

will restate its third-quarter financial results because of an error in the calculation of realized nuclear decommissioning trust fund losses. The restatement lowers the company's third-quarter earnings to $1.16 from $1.25. The company still expects to post earnings of $4.30 to $4.45 for the 2001 fiscal year. Exelon will report its fourth-quarter and full-year results on Jan. 29.

Knight-Ridder

(KRI)

posted fourth-quarter earnings of 88 cents a share, a penny below the consensus estimate. Revenue for the quarter fell to $733.3 million from $877.8 million a year earlier. In a press release, the company said, "We were prepared, until Tuesday, to report earnings slightly ahead of the guidance we gave in November. However, the

Kmart

bankruptcy petition filed this week has caused us to reflect a slightly more conservative position with respect to our financial statements, and so we are marginally below the guidance."

Sanmina-SCI

TheStreet Recommends

(SANM) - Get Report

missed analysts' first-quarter expectations by a penny and posted a 96% drop in pro forma profits. The contract manufacturer earned $7.3 million, or 3 cents a share, compared with $117.3 million, or 34 cents a share, in the year-ago quarter. Analysts had been expecting 4 cents a share, according to Thomson Financial/First Call. Revenue for the quarter was $2.4 billion, down from $4.1 billion a year ago. The company also warned of lower third-quarter results.

Mergers, Acquisitions & Joint Ventures

Digital River

(DRIV) - Get Report

agreed to acquire the assets and customer contracts related to the eStores and Government Systems Group businesses of

Beyond.com

(BYND) - Get Report

for $3.5 million in cash and $7.5 million in common stock. As part of the acquisition, Beyond.com has filed for Chapter 11 bankruptcy protection.

Miscellaneous News

Kmart

(KM)

said Friday it was cooperating with the

Securities and Exchange Commission

after the company received a letter questioning its accounting. Kmart said that upon receiving the anonymous letter, which expresses "concern regarding unspecified accounting matters," it hired an outside lawyer and consultants to conduct an investigation. The company also said it "contacted the SEC, which has subsequently authorized a private investigation." Kmart said it would cooperate with the SEC.

Watson Pharmaceuticals

(WPI)

received approval from the Food and Drug Administration to market a generic version of

Bristol-Myers Squibb's

(BMY) - Get Report

Glucophage, a treatment for type 2 diabetes.