EDS Beats Second-Quarter Views, Sees Third-Quarter Charge

Publish date:

Electronic Data Systems


reported second-quarter earnings of 44 cents a share, a penny better than the 19-analyst expectation and up from the year-ago 39 cents. The company's CFO reportedly said he expects the company to take an unspecified third-quarter charge for its ongoing restructuring, and he forecast 10% total revenue growth for 1999.

Inflow into U.S. equity funds for the week ended yesterday totaled $5.4 billion, with 62% flowing into growth funds, according to

AMG Data Services

. International equity funds reported inflow into developed sectors, and emerging regions experienced redemptions. Among other categories, outflow from taxable bond funds totaled $819 million, outflow from money market funds totaled $4.8 billion and outflow from municipal bond funds totaled $540 million.

In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Miller Industries

(MLR) - Get Report

said it sees full-year 1999 earnings coming in at 4 cents to 5 cents a share, which is below the three-analyst view of a dime. The company also said it plans to delay filing financial information in its annual report.

Noodle Kidoodle


said it expects a second-quarter loss of 28 cents to 30 cents a share, wider than the four-analyst estimate of a 15-cent loss. The company pointed the finger at those harmless little stuffed critters known as Beanie Babies, saying that a scarcity of merchandise had slowed down sales. Noodle Kidoodle also said it would invest up to $1 million in an e-commerce Web site.


(SBUX) - Get Report

said its July same-store sales rose 8%. The ubiquitous coffeeteer's shares edged up 3/16 to 24 3/16 in after-hours trading,



In other earnings news:

Mergers, acquisitions and joint ventures

Insight Communications

(ICCI:Nasdaq) inked a definitive pact to form an interactive-television-portal joint venture with

Source Media


. Insight will provide $13 million in equity financing to the 50-50 venture, with Source Media providing software and management. Insight also will buy 842,105, or 6%, of Source Media's shares for $12 million.

Oak Technology


announced it will acquire

Xionics Document


. Oak Tech will swap a total of 0.803 of a share plus $2.94 in cash for each Xionics share, valuing the deal at $70 million.

Offerings and stock actions

Bear Stearns



(DIGX:Nasdaq) 10 million-share IPO top-range at $17. The company, a spin-off of

Intermedia Communications


, helps companies to run Web sites.

Elsewhere in new issues,


(NTIQ:Nasdaq) 3 million-share IPO was priced top-range at $13. Underwriters include

Credit Suisse First Boston


BancBoston Robertson Stephens


Hambrecht & Quist



Network Equipment Technologies


said it will cut its workforce by 7% as part of its previously announced restructuring plan. The company, which expects annualized savings of $10 million from the plan, said it will take a second-quarter charge of $3 million to $4 million.

As originally published, this story contained an error. Please see Corrections and Clarifications