Hewlett-Packard ( HWP) raised first-quarter earnings and revenue guidance, citing unexpectedly strong demand and cost reductions. The computer and printer maker, which is merging with Compaq ( CPQ), expects revenue to rise slightly from the $10.88 billion it posted in the fourth quarter and for earnings to substantially exceed the 16 cents analysts were predicting.
Earnings Reports & Outlooks
Right Management Consultants ( RMCI), which provides employment-transition services, said fourth-quarter earnings nearly doubled to $6.3 million, or 39 cents a share. The company backed current 2002 estimates, saying it believes global economic weakness will continue into the second half of 2002, keeping demand for its services brisk.
Contracts & Alliances
Communications Intelligence ( CICI) said IBM ( IBM) will bundle its handwritten signature verification product on TransNote laptops in Singapore. Communications Intelligence's product is used both to secure the computer and for signature-authorization of certain types of documents within it. 3Dlabs ( TDDD) said Hewlett-Packard will bundle its Wildcat III 6210 and Wildcat III 6110 graphics accelerators with two new workstations. The Wildcat III 6110 will be offered as a high-performance graphics subsystem in preconfigured HP workstations, while the Wildcat III 6210 is certified as an option through an HP graphics program. Bruker Daltronics ( BDAL) received an order from the Defense Department for an infrared system used to detect chemical weapons on the battlefield. Bruker said the contract exceeds $1 million and is the first multiple system order for the product, which is called Rapid. Enterasys ( ETS) said it would delay the spinoff of its Aprisma Management unit. On Friday Enterasys said it was reviewing $4 million in sales in its Asia-Pacific segment and said the SEC had launched an unrelated investigation of the firm. Fellow Cabletron spinoff Riverstone Networks ( RSTN) issued a press release noting it has operated independently with its own management and board since February 2001. SpeechWorks ( SPWX) entered an agreement with Microsoft ( MSFT) aimed at promoting speech technologies in enterprise applications. The alliance will make speech platform technologies from SpeechWorks and Microsoft available to millions of developers.
Micron Technology ( MU) was upgraded by Robertson Stephens and Thomas Weisel on Monday. Robertson Stephens said the company's recent production cutbacks have resulted in sharply improved supply dynamics with low inventories. Weisel cited an upbeat analyst meeting on Friday and an improved outlook for calendar 2002.
Tyco International ( TYC) was falling in the wake of a report that it made $8 billion of acquisitions over the last three years that it never announced. The company's response was that the deals were too small to disclose individually and weren't material to its overall financial condition. Separately Tyco said it will buy back $4.5 billion worth of debt. Chairman Dennis Kozlowski said the company will produce free cash flow of $4 billion in 2002, most of which will go to paying off debt.