Evening Update: NBCi Warns of Shortfall, Sets Restructuring - TheStreet

Evening Update: NBCi Warns of Shortfall, Sets Restructuring

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NBC Internet

(NBCI)

warned it sees lower-than-expected second-quarter and 2000 revenues and wider-than-expected losses because of low ad sales and a restructuring. The six-analyst estimated loss for the second quarter is 70 cents a share while the seven-analyst estimate for 2000 is a loss of $2.84. The company said it sees profits after noncash expenses in 2002.

NBCi also announced it will combine its consumer Web sites under a single

NBCi.com

brand. The new site will include

Snap.com

and

Xoom.com

and launch in the fall.

Investors hadn't waited for NBCi's announcement to start losing confidence in the company, which started trading last November; the stock, which peaked at 106 1/8 in late January, closed at 24 5/8 Monday, down 1 13/16. The company's partial blame for disappointing results on "lower-than-expected sales revenues associated with a soft dot-com advertising market" could foreshadow troubles for other Net firms that rely on consumer ad revenues.

NBCi's planned phaseout of the Snap.com and Xoom.com brands was foreshadowed by its February launch of a high-speed portal. The company called the site NBCi.com, choosing not to include Snap.com or Xoom.com.

The

Justice Department

, along with 17 states involved in the antitrust lawsuit against

Microsoft

(MSFT) - Get Report

asked Judge Thomas Penfield Jackson to ignore the company's efforts to dismiss a breakup order following the ruling last week. Government lawyers also outlined plans for the appeals process and set potential target dates for imposing the ordered breakup.

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

Engage Technologies

(ENGA)

posted a third-quarter loss of 22 cents a share, narrower than the 10-analyst expected loss of 27 cents and wider than the year-ago loss of 19 cents.

Pizza chain

Papa John's

(PZZA) - Get Report

said May system-wide

same-store sales were down 2.8%.

7-Eleven

(SVEV)

said May same-store sales were up 7%.

Solectron

(SLR)

reported third-quarter earnings of 21 cents a share, in line with the 22-analyst estimate and up from the year-ago 16 cents a share.

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Miscellany

Computer Associates

(CA) - Get Report

declined to comment on its unusual market activity following a request from the

New York Stock Exchange. The company's shares fell about 14% today, despite an analyst meeting in which executives painted a picture of strong revenue growth for the year but did not give specific comments about the current quarter.

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