Bank One Warns of Shortfall; Newbridge Sets Buy of Stanford Telecom

Author:
Publish date:

Bank One

(ONE) - Get Report

said it is slicing its fiscal 1999 earnings outlook to $3.45 to $3.55 a share from $3.60 to $3.65 as a result of slowness at its

First USA

credit card division. The company also announced the postponement of its Nov. 15 analyst meeting.

TheStreet.com/nytimes.com

joint newsroom covered the Bank One news in a

story this evening. Also, see the Wednesday's Company Report section of today's

Market Roundup for a report on the late-day stock and option action in Bank One, which was beset by rumors of its postclose news throughout the late afternoon.

Newbridge Networks

(NN)

announced its plans to buy

Stanford Telecommunications

(STII)

, in a cash transaction valued at $240 million. According to the deal's terms, Newbridge will pay $34.22 in cash for each common share of Stanford. The deal, which was originally struck in June, had to be re-examined after the initial all-stock terms were affected when Newbridge shares dropped below an average of $24 a share, which led to the current cash transaction. After Newbridge sells off several of Stanford's business divisions including its defense communications, manufacturing and semiconductor units, the deal would have a net cost to Newbridge of $240 million, down from the prior estimate of $280 million.

After-Hours Trading

Fonix

(FONX)

led all night long on Island ECN. Trading on the exchange was light and most of the issues in the top 10 stayed pretty static. It was a lot like a stick-up. Nobody made any funny moves.

MarketXT

sang the same song.

Compaq

(CPQ)

led trading for most of the night as volume was pretty low.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EST.

.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Morgan Stanley Dean Witter Online and Mellon Bank's (MEL) Dreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 4:30 p.m. to 8 p.m. EST Monday through Thursday.

Confused?

TheStreet.com

explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.

--

Eric Gillin

In other postclose news (earnings estimates from

First Call/Thomson Financial

; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Gentek

(GK)

reported third-quarter earnings of 50 cents a share, in line with the single-analyst estimate and up from the year-ago 40 cents a share.

N2H2

(NTWO)

posted a fourth-quarter pro forma loss of 20 cents a share, wider than both the three-analyst estimate of an 18-cent loss and the year-ago 14-cent loss.

Mid Atlantic Medical

(MME)

posted third-quarter earnings of 17 cents a share, beating the 10-analyst estimate of 15 cents and the year-ago 9 cents.

Pegasus Communications

(PGTV)

reported a third-quarter loss of $2.86 a share, wider than both the five-analyst estimate of a $2.51 loss and the year-ago 68-cent loss, which included a gain on a sale.

Salem Communications

(SALM) - Get Report

posted a third-quarter loss of 16 cents a share, which included extraordinary items. The results were wider than the single-analyst estimate of a 14-cent loss and down from the year-ago 1-cent profit.

Trans World Entertainment

(TWMC) - Get Report

posted third-quarter earnings of 15 cents a share, in line with the five-analyst estimate and up from the year-ago 7 cents.

ViaSat

(VSAT) - Get Report

posted second-quarter earnings of 22 cents a share, beating the four-analyst estimate by a penny and up from the year-ago 17 cents a share.

Offerings and stock actions

Online brand name promoter

Agency.com

(ACOM)

set plans for a 5.9 million-share IPO, which is expected to price in the range of $10 to $12 a share.

Goldman Sachs

,

Salomon Smith Barney

and

Hambrecht & Quist

are serving as the deal's underwriters.

J.C. Penney

(JCP) - Get Report

said it has set plans to spin off 20% of its

Eckerd Drugstore

division as a tracking stock. The retailer said its expects to hold an IPO for Eckerd in the first half of 2000.

Miscellany

Johnson & Johnson

(JNJ) - Get Report

subsidiary

Centocor

said it has been awarded

Food and Drug Administration

approval to sell its anti-inflammatory drug

Remicade

, as a remedy for rheumatoid arthritis. Centocor said the FDA approved Remicade, along with

methotrexate

, to treat the condition when methotrexate alone is ineffective.

Hutchinson Technology

(HTCH)

announced its plans to slice its workforce by 160, a reduction that would result in a $2 million restructuring charge. Hutchinson said the job cuts, which are due to softer demand for its TSA suspensions and higher production efficiency, are part of an effort to save the company roughly $10 million in fiscal 2000.

Transaction Systems Architects

(TSAI)

said it has tapped COO and board member David Russell to assume the additional roles of president and CEO. Russell is replacing William Fisher, who will continue to serve as the company's chairman.