Pharmacyclics

(PCYC)

was plummeting more than 42% on word the Food and Drug Administration had rejected its application for Xcytrin, an injected lung cancer treatment, for use by patients with brain metastases (brain cancer that has spread to other organs), citing a lack of clinical evidence proving differentiation from other brain-metastases treatment arms. Shares of the Sunnyvale, Calif., company were losing $2.12 to $2.92.

Kentucky-based

Texas Roadhouse

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garnered a J.P. Morgan Chase upgrade to overweight after growing its per-share fourth-quarter income a penny past estimates to $7.8 million, or a dime a share. Last year the restaurant chain earned $6.3 million, or 9 cents a share. Same-store sales were up 3.3% at company restaurants and 3.5% at franchises, and total sales reached $152.6 million -- a 30% rise from last year that's just shy of estimates. The company expects 2007 income to be at least 53 cents a share, which is precisely what the Street is seeking. Shares were up $1.57, or 11%, to $15.82.

Epiq Systems

(EPIQ)

cut its GAAP-based fourth-quarter losses by half and saw a 55% sales leap to $46.4 million. The business software company, based in Kansas City, Kan., posted a loss of $2.1 million, or 11 cents a share, compared with $4 million, or 22 cents a share, a year ago. Excluding items (but including stock option expenses) the company earned 3 cents a share, which misses the 6-cent target two analysts were seeking. Shares were climbing $1.28, or 7.1%, to $19.30.

Carter's

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, which was battered last week on weak 2007 guidance, got a sharp lift today after the children's clothing company announced in-line fourth-quarter earnings and revenue -- 46 cents a share on $377.5 million. The Atlanta-based company will also buy back $100 million of its shares and plans, by April, to close its Tennessee distribution center for its struggling OshKosh product line. The latter is expected to result in 2007 charges of $9.2 million, or 9 cents a share, mostly contained within the first quarter. It should also ultimately save the company about $4 million a year. Shares were rising $1, or 4.4%, to $23.98.

Orbital Sciences

(ORB)

flew higher after the maker of launch equipment and vehicles reported adjusted fourth-quarter earnings of $12.5 million, or 20 cents a share, up from last year's $7.5 million, or 12 cents a share. The Dulles, Va., company's sales were up 8% to $215.8 million. Shares were up 87 cents, or 4.7%, to $19.51.

Taser Intenational

(TASR)

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shot up after the self-defense-device maker squared with Thomson Financial's analyst estimates, bringing in fourth-quarter profits of $2.3 million, or 4 cents a share, from break-even a year ago, on a top line that soared 53% to a quarterly sales record of $19.3 million. The Scottsdale, Ariz.-based company was gaining 43 cents, or 5.2%, to $8.75.

Headwaters

(HW)

gained after announcing it had started up its "state of the art" Blue Flint ethanol facility in Underwood, N.D. The Utah-based company is slightly ahead of schedule, having previously estimated a March opening. Blue Flint is slated to produce 50 million gallons of ethanol a year using 18 million bushels of corn and the excess heat from an existing coal-fired power plant, Coal Creek Station, that is adjacent to the facility. Shares were adding $1.06, or 4.4%, to $25.33.

Hana Biosciences

( HNAB) shares were plunging more than 21% after the California-based biotech announced it will delay its Zensana product launch, having found "small amounts" of precipitate (solid material) in the oral spray's formulation. The company has halted commercialization plans while it evaluates the issue, and says it might need to reformulate the compound. Zensana, which was proposed to prevent cancer-treatment side effects of nausea and vomiting, had been up for imminent FDA approval; the company now expects it to be pushed past the April 30 due date. Shares were sliding $1.33 to $4.91.

NovaDel Pharma

( NVD), which licensed to Hana the oral spray delivery technology used in the Zensana drug, was dropping by 22 cents, or 12.7%, to $1.51.

BTU International's

(BTUI)

fourth-quarter earnings fell by more than half to $1 million, or 11 cents a share, which widely misses the 24-cent estimate sought by the analyst who follows the company. The North Billerica, Mass., maker of thermal processing systems also said sales declined 9% to $16.6 million, falling about $1 million short of targets. Looking ahead, the company expects to double its alternative-energy business in 2007, but first-quarter profits should be "similar" sequentially. Shares were off $2.01, or 16.8%, to $9.97.

Acorda Therapeutics

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narrowed its loss to $7 million, or 30 cents a share, compared with a year-ago loss of $15.8 million, or $75.59 a share, but the drugmaker slumped after an analyst with Bank of America cut its rating to neutral from buy, predicting scarce upward catalysts for the company until late 2007. Shares were falling $2.18, or 8.8%, to $22.64.

Possis Medical

( POSS) said earnings for the quarter ended Jan. 31 were $174,000, or a penny a share -- down a penny from last year and 2 cents short of the only analyst projection. Sales were up a bit, to $15.8 million from $15.1 million a year ago, but the analyst was seeking $16.5 million. The Minneapolis-based medical-device maker was lower by $1.25, or 9.3%, to $12.18.

Telestone Technologies

(TSTC)

fell on news the China-based wireless-equipment maker will sell $6 million in shares and warrants to institutional investors. Net proceeds are expected to be roughly $5.6 million. Shares were trading down 83 cents, or 8.3%, to $9.17.