Palm ( PALM) reported net income of $18.2 million, or 35 cents a share, for the first quarter ended Sept. 2, compared with $19.6 million, or 38 cents a share, a year ago. Revenue for the quarter increased to $342.2 million from $273.1 million last year. Excluding items, the maker of handheld computer devices earned $21.1 million, or 41 cents a share. Analysts expected earnings of 38 cents a share on revenue of $341.2 million, according to Thomson First Call. The company's second quarter guidance was a little convoluted. The company expects to receive a tax benefit in the quarter of $240 million to $250 million a share, which will be partially offset by a higher tax rate. On the bottom line, the company expects to post a profit of $5 to $5.20, although it could also earn 55 cents to 60 cents a share if the tax benefit doesn't come through. On a pro forma basis, which excludes the windfall, amortization and stock-based compensation costs, the company expects earnings of 38 cents to 43 cents a share, assuming the benefit-induced higher tax rate, or 60 cents to 65 cents a share, if there's no tax benefit. It sees sales of $435 million and $440 million. Analysts were expecting earnings of 66 cents a share on sales of $450.16 million in the current period. 3 Com ( COMS) reported a loss of $42 million, or 11 cents a share, for the first quarter ended Sept. 2, versus a loss of $56.5 million, or 15 cents a share, a year ago. Revenue for the quarter rose 9% to $178 million from $176.6 million last year. Look ahead, 3Com expects second quarter revenue of $190 million and a gross profit margin of 40%. The stock was up 17 cents, or 4.7%, to $3.79 in after-hours trading.
Verity ( VRTY) said it earned $237,000, or a penny a share, for the first quarter ended Aug. 31, compared with $2.5 million, or 7 cents a share, a year ago. The provider of enterprise search software reported revenue of $35.5 million for the quarter. Excluding items, the company earned $1.7 million, or 5 cents a share. Analysts polled by Thomson First Call expected a profit of 5 cents a share on sales of $33.4 million. For the second quarter, Verity expects GAAP earnings of 3 cents to 5 cents a share and non-GAAP earnings of 7 cents to 9 cents a share on revenue of $35 million to $37 million. Wall Street was expecting non-GAAP earnings of 8 cents a share on sales of $36.2 million. The stock was up 4 cents, or 0.39%, to $10.25. Starbucks ( SBUX - Get Report) said its board authorized the repurchase of up to 5 million share. This repurchase plan is in addition to the 7.2 million shares that remain under its existing repurchase plan. The stock was up 38 cents, or 0.79%, to $48.69 in after-hours. Alcoa ( AA - Get Report) cut its estimate of earnings from continuing operations to between 27 cents and 31 cents a share for the third quarter. The weaker forecast is due to lower aluminum prices and higher energy costs. "This quarter, we are squeezed between a weaker upstream pricing environment and significantly higher energy and input costs," said Alain Belda, chairman and CEO. The company also said that the impact of closing its Point Comfort, Texas, and Lake Charles, La, as a result if Hurricane Rita is still unknown but will be reflected in third quarter numbers. The stock was down $1.48, or 5.71%, to $24.42. Lockheed Martin ( LMT - Get Report) announced that its board has authorized a 20% increase of its dividend and the repurchase of 45 million common shares. The new 30-cent dividend will be payable of Dec. 30 to shareholders of record as of Dec. 1. Lockheed said that through June 30, it has repurchased 34 million shares under the existing 43 million-share authorization. The stock was up 20 cents, or 0.33%, to $60.62 in after-hours trading.
Electro Scientific Industries ( ESIO) said net income slid to $1.3 million, or 5 cents a share, for the first quarter ended Aug. 27, versus $10.6 million, or 36 cents a share, a year ago. Revenue for the quarter fell 39% to $44.5 million from $72.6 million last year. The supplier of manufacturing equipment for semiconductor and electronic equipments markets expects to revenue to be in the range of $45 million to $55 million for the second quarter. The stock was down $2.87, or 12.97%, to $19.25 in after-hours trading. Tibco Software ( TIBX) reported earnings for the third quarter ended Aug. 28 of $13.8 million, or 6 cents a share, on revenue of $105.95 million. This compares with net income of $8.6 million, or 4 cents a share, on revenue of $105.91 million a year ago. Excluding items, the company earned $10.2 million, or 5 cents a share. Analysts expected earnings of 4 cents a share on revenue of $100.5 million. The stock was up 21 cents, or 2.55%, to $8.43 in after-hours trading. Darden Restaurants ( DRI - Get Report) said it earned $85.5 million, or 53 cents a share, for the first quarter ended Aug. 28, versus $71 million, or 44 cents a share, a year ago. Revenue for the quarter was $1.41 billion, compared with $1.28 billion last year. Analysts expected earnings of 52 cents a share on revenue of $1.4 billion, according to Thomson First Call. The restaurant operator also announced that its board has increased its semi-annual dividend by 400% to 20 cents. The dividend will be payable on Nov. 1 to shareholders of record as of Oct. 10. Darden estimates that Hurricane Katrina's impact on full year sales will be $16 million to $17 million. The stock was up $1.48, or 5.09%, to $30.55 in after-hours trading.