Stocks to Watch Monday: Warnaco, Peregrine, Remedy, Powerwave - TheStreet

(Updated from 6:25 p.m. ET Friday)

Clothing maker

Warnaco Group

(WAC)

voluntarily filed for Chapter 11 bankruptcy this morning. The company has secured a $600 million debtor-in-possession financing pact from a group of banks led by

Citibank

,

J.P. Morgan Chase

and

Bank of Nova Scotia

. The company said the filing won't affect its day-to-day operations.

The company stock has fallen 94.8% in the past year, including 76.9% since the start of 2001. Shares of Warnaco fell 15 cents to close at 39 cents on Friday. Warnaco makes clothes that are sold under brand names, including Calvin Klein jeans and Speedo swimwear.

Earnings/revenue reports and previews

Semiconductor equipment maker

DuPont Photomasks

( DPMI) lowered its guidance for the fourth quarter of fiscal 2001. The company projected revenue of between $91 million and $98 million in the fiscal fourth quarter, after posting a top line of $93.4 million a year earlier. The company expects earnings of break-even to 19 cents a share in the quarter, far below the

Thomson Financial/First Call

estimate of 52 cents a share.

The company also said that it would cut 120 jobs, or about 6% of its staff, as it shuts down several production lines. DuPont will also record a one-time charge of between 94 cents and $1.08 a share during the fourth quarter for the job cuts, asset write-downs and the previously announced closure of facilities in Scotland.

Wireless communications equipment-provider

Powerwave Technologies

(PWAV)

announced this morning that it expects second-quarter revenue to fall below current analysts' expectations, citing weaker demand for its products.

The company now expects revenue of $70 million to $80 million for the quarter, as well as "a lower loss" than in the first quarter. Currently, Wall Street's consensus estimate calls for a loss of 1 cent a share in the second quarter. The company earned 18 cents a share in the year-ago period. Powerwave expects to report its second-quarter results on July 13.

Stun-gun maker

Taser International

(TASR)

this morning forecast improved results for the fiscal year, citing an increase in orders from law enforcement officials. The company said it now expects earnings of 30 cents to 32 cents a share on revenue of $6.5 million to $7.5 million for the whole year.

Taser reported revenue of $3.4 million, and a loss of 17 cents a share, in fiscal 2000.

After Friday's Close

AutoZone

(AZO) - Get Report

said on Friday that it expects to post a charge of $50 million to $75 million for the fiscal fourth quarter as the company restructures its business in an effort to improve profitability.

The auto parts retailer, which is based in Memphis, Tenn., said the expected charge will include the likely closing of 30 to 60 stores in the U.S. The company operates about 3,000 locations.

The company plans to complete the review before the end of the fiscal year in August. AutoZone said it remains comfortable with Wall Street's consensus earnings forecast of 96 cents a share for the fourth quarter, before the restructuring charge. The company also said the expectations for 2002 are "achievable."

Shipping company

Alexander & Baldwin

(ALEX) - Get Report

expects second-quarter earnings to come in below the year-ago levels because of a slowdown in business and visitor traffic. The Honolulu-based company forecast that earnings would fall 10% to 15% below the bottom line of 69 cents in the second quarter a year ago.

Spectrian

(SPCT)

, a maker of amplifiers for wireless devices, said its first-quarter operating loss could be wider than analysts expect because of an economic slowdown in North America and South Korea.

The Sunnyvale, Calif., company projected a first-quarter pro forma loss of $8 million to $10 million, or 70 cents to 87 cents a share. Analysts are expecting Spectrian to lose 26 cents a share for the quarter ending July 1. Spectrian also forecast first-quarter revenue of $27 million to $33 million.

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Offerings and stock actions

After Friday's Close

John Deere Capital

, a unit of

John Deere

(DE) - Get Report

, filed a registration statement to periodically sell up to $3 billion in debt securities, stock and warrants.

In a filing with the

Securities and Exchange Commission

, the Moline, Ill., company said it plans to use the money for working capital, debt repayment, and other general corporate purposes.

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Mergers & Acquisitions

Software maker

Peregrine Systems

(PRGN)

announced earlier this morning that it will acquire

Remedy Corp.

( RMDY), a rival software maker. The purchase price totals $1.08 billion in stock and cash.

Peregrine expects to issue about 27.9 million common shares in exchange for all outstanding shares of Remedy. Remedy closed at $18.34 on Friday, while Peregrine closed at $28.81.

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Miscellany

After Friday's Close

Insurance company

Allstate

(ALL) - Get Report

received $1.10 billion in credit facilities, consisting of a $550 million 364-day revolving credit line and a $550 million five-year revolving credit agreement. The new agreement replaces the Northbrook, Ill., company's current primary credit agreement, which was set to expire on Dec. 20.

BNY Capital Markets

was the sole lead arranger of the deal.

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