Evening Update: Intel Faces $600 Million Decrease in Tax Provision

Also, Wesley Jessen VisionCare nixes a bid from Bausch & Lomb, pressing ahead with its Ocular Sciences deal.
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Intel

(INTC) - Get Report

said an

Internal Revenue Service

review of its tax returns throughout 1998 would end in revisions that would slice its first-quarter tax provision by $600 million, or 17 cents a share. The semiconductor chipmaker attributed the revisions to an "intercompany allocation of profits." Excluding the $600 million reduction, Intel's fiscal 2000 tax-rate forecast of 31.7% remains intact. Intel's first-quarter earnings are forecast at 69 cents a share.

Wesley Jessen VisionCare

(WJCO)

said it turned down

Bausch & Lomb's

(BOL)

$34-a-share bid for the company, citing its dedication to its proposed $562 million stock deal with

Ocular Sciences

(OCLR) - Get Report

. Wesley Jessen said Bausch & Lomb's offer doesn't top Ocular's bid, which according to Wesley, would create about $30 million in cost savings.

In other postclose news (earnings estimates from

First Call/Thomson Financial

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

Mergers, acquisitions and joint ventures

Advanced Micro Devices

(AMD) - Get Report

said it has opted not to sell its network product division because of growing demand. The chipmaker said it would still sell certain communications product unit assets. The unit supplies integrated circuits for telecom infrastructure programs.

The

Federal Communications Commission

gave its final OK to the merger of

Bell Atlantic

(BEL)

and

Vodafone AirTouch's

(VOD) - Get Report

wireless businesses. According to the FCC, the joint venture will operate under Bell Atlantic's

Cellco

unit.

Infonet Services

(IN)

and

Deutsche Telekom

(DT) - Get Report

agreed to a five-year deal that calls for Infonet's global network services to be sold under the Deutsche Telekom brand name. According to the companies, the deal would mean a $1 billion increase in revenues for Infonet.

The

Justice Department

gave its stamp of approval for

Hearst

to acquire the

San Francisco Chronicle

, after Hearst sells the

Examiner

to a local publisher,

ExIn

.

The

Federal Communications Commission

said it gave the thumbs up to

VoiceStream Wireless

(VSTR)

acquisition of

Aerial Communications

(AERL)

. VoiceStream has already closed its purchase of

Omnipoint

and said the three merged companies would provide service to more than 200 million customers.

Earnings/revenue reports

Dave & Buster's

(DAB)

reported fourth-quarter earnings of 30 cents a share, beating the six-analyst estimate of 25 cents but down from the year-ago 39-cent profit.

Hutchinson Technology

(HTCH)

warned investors that it would post a second-quarter loss between 40 cents to 45 cents a share, which includes a 3-cent restructuring charge. The five-analyst estimate expects the disk drive supplier to report a 24-cents loss.

Kronos

(KRON)

warned investors that it would post second-quarter earnings between 13 cents to 15 cents a share, greatly missing the three-analyst estimate of 46 cents a share. The labor management systems supplier blamed the shortfall on slow orders following the aftermath of Y2K concerns.

Orbital Sciences

(ORB)

, a space systems maker, warned investors that it would post a fourth-quarter loss between 48 cents to 55 cents a share, wider than the nine-analyst estimate of a 38-cent loss. The company said the results for the quarter and year would be postponed due to an accounting discrepancy. Orbital expects to post a loss for fiscal 2000 between $2.05 to $3.25 a share, also wider than the nine-analyst estimate of $1.41 loss.

TRW

(TRW)

cautioned investors that it could report first-quarter earnings between $1.20 a share to $1.25, possibly missing the six-analyst estimate of $1.25 a share.

Union Carbide

(UK)

Chairman and CEO William Joyce said its first-quarter earnings would edge out the two-analyst estimate of 54 cents a share, forecasting that the report would come in closer to its fourth quarter's 68-cent profit. The company is set to be acquired by

Dow Chemical

(DOW) - Get Report

Miscellany

The U.S. attorney's office said that a daytrader who submitted a fake press release to a

Yahoo!

(YHOO)

message board, triggering a decline in

Lucent Technologies

(LU)

share price, was charged with securities fraud. Fred Molodofsky was presented in a federal court in Houston, Texas, after he allegedly posted a phony press release, which mimicked Lucent's first-quarter earnings warning from Jan. 6, warning investors that Lucent would miss earnings estimates. According to prosecutors, Lucent shares suffered a 3.6% decline one day after the release went up. Molodofsky traded 6,000 shares of the company the day he posted the release.

For a look into this evening's after-hours trading action, please check out

TheStreet.com's

The Night Watch.

As originally published, this story contained errors. Please see the

April 3-9 and

April 10-16 versions of Corrections and Clarifications.