A federal judge ruled that Microsoft (MSFT) - Get Report broke federal antitrust law by abusing its monopoly in PC operating systems. Judge Thomas Penfield Jackson said the software maker violated key parts of the Sherman Antitrust Act. The finding will lead to consideration of penalties, including a possible breakup of the company.
Microsoft said it would eventually appeal the judge's ruling and expressed confidence that it would prevail in the case. Yesterday, the stock fell sharply on news that settlement talks in the antitrust case had
ended this past weekend.
For more details on the decision, see separate
coverage from the
said that it would post second-quarter revenue of between $36 million and $38 million, edging out the analyst consensus estimates by 25% to 30%. The 22-analyst estimate sees the company reporting a loss of 8 cents a share. The company attributed the solid revenue outlook to B2B platform demand.
Bank of America
and Ariba said they entered a business-to-business e-commerce pact.
Mergers, acquisitions and joint ventures
stated today that a merger with its strategic partner
KLM Royal Dutch Airlines
was only one of the issues currently under discussion between the two. The Italian financial daily
Il Sole 24
reported earlier that Alitalia and KLM had stepped up talks to consider a full merger.
said it would spin off a part of their U.S. wireless joint venture,
in an IPO. The companies said Verizon would put $3 billion towards developing its network.
Cable & Wireless
said it entered a three-year, $91 million online hosting agreement with
. The deal calls for Cable & Wireless to supply the video streaming provider with Web connectivity that would link Microcast's video server installations to Cable & Wireless' Internet protocol network.
, which specializes in fiber-optic equipment, said it has agreed to
acquire privately held
Cronos Integrated Microsystems
in a stock deal valued at $750 million. Cronos develops micro-electromechanical systems that are incorporated into optical communication switches.
said it has postponed its deadline to render a decision on the
merger until July 11. According to the EU, the initial July 4 deadline was extended by a week to allow the agency to gather additional information from the company.
Earnings/revenue reports and previews
(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.)
said first-quarter sales would increase 10% from the fourth quarter. Fairchild also said it expects first-quarter earnings to beat the four-analyst estimate of 38 cents a share. The company said it is aiming to double its revenue by 2002 and hit a 10% market share.
Federated Department Stores
said its March same-store sales fell 0.6%.
announced that its financial results for the first quarter of 2000 will include a pretax gain of approximately $14 million, or 11 cents a share after tax, to reflect "market-to-market adjustments" on certain aluminum hedging contract positions.
cautioned investors that its first-quarter revenue and earnings would fall short of previous forecasts. The company said it expects to post a first-quarter loss of 55 cents to 60 cents a share, wider than the four-analyst estimate of a 34-cent loss. PictureTel blamed the weak results on customer order deferrals.
warned investors that it would report first-quarter revenue of between $1.66 billion and $1.69 billion, falling below prior forecasts. The company said it remains on track to post first-quarter earnings within the 11-analyst estimate range of 33 cents to 34 cents a share. The company blamed its revenue shortfall on a softer-than-expected sales recovery after Y2K.
The Heard on the Street column in
The Wall Street Journal
discusses investors' shift to Old Economy stocks in the wake of the carnage in Microsoft and the
nose dive yesterday.
For analysis of the market's preopen tone and trends, see the Wake-Up Call, published separately.