The Day's Winners

  • Internet Security Systems ( ISSX) added 13% to $14 after posting a second-quarter profit, reversing its year-ago loss. The company earned $4.1 million, or 8 cents a share, compared with a loss of $5.6 million, or 13 cents a share, last year. Excluding charges, the company earned 11 cents a share, in line with estimates. Revenue was up to $60 million from $51.7 million. The company said that it expects to earn 45 cents to 50 cents for the year, down from its original guidance of 55 cents to 60 cents, but in line with the consensus estimate.

  • Netro Corp. ( NTRO) jumped 28% to $3.15 after the company narrowed its second-quarter loss. The company lost $18.5 million, or 30 cents a share, compared with a loss of $29.8 million, or 57 cents a share, in the year ago quarter. Revenue was $5.7 million, up 13% sequentially and more than double the year-ago level. The broadband fixed wireless network provider attributed the revenue growth to the addition of new customers in China, the Middle East and North America.

  • PeopleSoft ( PSFT) tacked on 12% to $16.25 after reporting sequentially flat second-quarter results, which were in line with previous guidance. The software maker said it earned $36 million, or 11 cents a share, compared with $47.4 million, or 15 cents a share, a year ago. Excluding charges, the company earned 14 cents a share, a penny ahead of the consensus estimate. Revenue for the quarter was $482.2 million, an 11.4% decline from $544.5 million a year ago. Looking ahead, the company expects to earn 13 cents a share in the third quarter, in line with estimates.

  • Shares of WebEx Communications ( WEBX) shot up 14% to $13.82 after the company posted a second-quarter profit on much higher sales Thursday. WebEx earned 6 cents a share in the quarter, excluding stock-based compensation, up from a loss of 26 cents a share a year ago. Analysts had been expecting 4 cents. Revenue rose 80% to $33.2 million from $18.4 million last year, and the company predicted third-quarter earnings of 6 cents to 7 cents on revenue of $36 million to $37 million. Analysts are expecting 7 cents.

    The Day's Losers

  • Flash memory company Atmel ( ATML) fell 10% to $4.54 on a disappointing second quarter. The company lost $1.02 a share, including charges relating to asset impairment. Excluding the charges, the company would have lost 7 cents a share, wider than the consensus estimate of 5 cents. Revenue fell to $314.8 million from $367 million last year. Atmel expects low to mid-single digit revenue growth in the third quarter. The stock was downgraded to hold from buy at Prudential on the news, with a new price target set at $6.

  • Overture Services ( OVER) shed 6% to $22.99 on news that it lost its contract with Internet search site Ask Jeeves ( ASKJ). Ask Jeeves had used Overture to provide paid advertising listings that appear at the top of its search page, but now it plans to switch to Google. Despite the news, Overture said its 2002 and 2003 results will be ahead of previous guidance and above Wall Street's consensus estimates.

  • Shares of PepsiCo ( PEP) dropped 10% to $36.10 on a downgrade to market perform from the recommended list at Goldman Sachs. Pepsi reported a second-quarter profit increase, but said its volumes and revenue came in light. The company posted revenue of $6.18 billion, missing the $6.38 billion consensus. Pepsi said its shortfall was caused by softness in its Tropicana business and higher trade spending.

  • Photronics ( PLAB) dropped 20% to $12.77 after the company lowered its guidance. The company expects third-quarter revenue of $96 million to $98 million, 5% to 7% below its second-quarter results. As a result, Photronics expects to post a profit of 1 cent a share to a loss of 1 cent, well below analysts' estimates of a profit of 13 cents. The stock was also downgraded by CIBC World Markets to underperform from strong buy on the news.