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The Night Watch: Downtrodden by Day, ICG Rises in After Hours

Updated from 6:14 p.m. ET

Sometimes calm precedes the storm but tonight it followed the torrential selling. Investors took a rest after getting walloped by day. Today was a bad day for the market but a worse day for telecommunications services provider

ICG Communications

(ICGX)

, after the company warned that revenue for the second half of 2000 and all of 2001 would be far below expectations.

The company blamed network outages and equipment failures for disrupting its Internet remote-access service. The stock gave up more than half its value in today's blood-caked market. This is the second time in six weeks that ICG lowered its financial forecast.

To add to the company's woes,

Salomon Smith Barney

downgraded the shares to neutral from buy but investors chose the bargain-hunting trial after the company's 57% fall. The bad-news bomb had already dropped and late-night scavengers were picking up the pieces of the Colorado-based company, which rose 21 cents to $1.87.

ICG also said that it is searching for additional funding and talking to financial institutions about other options.

Human Genome Sciences

(HGSI)

might be used to splitting gene cells, but today it made a more lucrative split. After the bell, the company announced a 2-for-1 split of its common shares. Shareholders will receive one additional common share for every share held at the close of business on Sept. 28.

The 56 million outstanding shares will double to 112 million in the company's second split since going public in 1993. Human Genome shares snapped up $5.75 to $149.75.

Protein Design Labs

(PDLI) - Get Report

may have lost 12.5% in conjunction with the sagging stock market, but bullish postclose news sent it $5.35 higher to $103. The drug-development company said it signed its second deal this month with distributor

TheStreet Recommends

Eli Lilly

(LLY) - Get Report

.

Under the latest deal, Protein Design will receive an upfront signing fee of $1.36 million, future milestone payments, maintenance fees and royalties based on sales of its humanized antibody.

The words "not profitable" and "Internet company" are often used in the same sentence by investors that know it takes time to get out of the red with these New Economy business models. But once an Internet company crosses into the land of profits, a retreat to losses is not met with the same kind of investor benevolence. This was the case with Internet software provider

Allaire

(ALLR)

after it said today that it expects a third-quarter loss of between 5 and 20 cents instead of the 7-cent profit seen by Wall Street -- especially after the company earned 6 cents per share in the second quarter. The company cited disappointing sales, investments and a longer-than-anticipated sales cycle for the shortfall.

TheStreet.com

covered the

story earlier.

The company lost 40% during the day session and continued to fall 24 cents to $10.19 on 42,000 Island shares.

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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.