Conexant Systems (CNXT) gained in after-hours trading Tuesday when the Newport Beach, Calif.-based semiconductor company said it expects to receive about $100 million in cash when Acquicor Technology (AQR) completes its merger with Jazz Semiconductor.Conexant owns about 42% of Jazz. Under the terms of the agreement, Jazz, a privately held specialty wafer-manufacturing company, will merge with a wholly owned subsidiary of Acquicor, a special purpose acquisition company, in an all-cash transaction valued at $260 million, subject to certain adjustments. The merger is expected to be completed in the first quarter of calendar 2007. Shares gained 8 cents, or 4.17%, to $2. Linux software developer Red Hat ( RHAT) saw a second-quarter sales spike of 52% from the year-ago quarter on strong subscription revenue. But that was offset by stock-option and merger-related expenses. In the second quarter, the Raleigh, N.C., company earned $11 million or 5 cents a share, compared with $16.7 million or 9 cents a share in the year-ago quarter. Red Hat said that because of taxes and stock-compensation expenses between fiscal 2006 and 2007, net income was not directly comparable between these periods. After adjusting for these accounting differences, non-GAAP adjusted net income for the second quarter of fiscal 2007 was $23.7 million, or 11 cents a share. This compares with non-GAAP adjusted net income of $17.7 million, or 9 cents, in the year-ago quarter. Revenue was $99.7 million, up 52% from a year ago. Analysts polled by Thomson First Call were looking for earnings of 10 cents a share before items on revenue of $97.1 million. During the quarter, Red Hat closed its acquisition of JBoss, an open-source application server company. Shares were trading down $1.62, or 6.2%, to $24.70.
Jabil Circuit ( JBL) climbed after the St. Petersburg, Fla.-based circuit board maker posted an increase in fourth-quarter sales. The company could release only partial quarterly results, due to its ongoing stock option-backdating probe and the possibility it would need to restate prior financial results. Jabil said it expects to file a complete 10-K by the Nov. 14 deadline. Fourth-quarter revenue increased 45% year over year to $3 billion. Wall Street was looking for $2.84 billion on the top line. For the full year, sales grew 36% to $10.3 billion. Analysts forecast $10.16 billion for the full year. The company said that the office of the chief accountant of the Securities and Exchange Commission had recently issued general instructions for companies on issues connected to their stock options-granting practices. "Jabil is in the process of evaluating this guidance," the company said in a statement. "It is premature to determine whether or not the application of that guidance to the company's circumstances will result in it recording any additional compensation expense, or that it will cause the Company to determine that it would need to restate financial results for any prior period." For its first quarter, Jabil expects revenue between $3.1 billion to $3.3 billion, higher than analysts' projections of $3.07 billion. The company also said it expects revenue growth of about 20% for fiscal 2007, suggesting revenue of about $12.36 billion. Shares gained $1.80, or 6.45%, to $29.69 recently.
Aehr Test Systems ( AEHR) gained after the Fremont, Calif.-based semiconductor testing-equipment company swung to a first-quarter profit. The company posted income of $557,000, or 7 cents a share, compared with a loss of $244,000, or 3 cents a share, a year ago. Sales totaled $7.1 million, up 54% from a year ago. Excluding stock-compensation expense of $163,000, the company earned $717,000, or 9 cents a share. "During the second quarter of fiscal 2007, we expect net sales and net income to be relatively similar to those of the first quarter of fiscal 2007," Gary Larson, vice president and chief financial officer, said in a statement. Shares gained 19 cents, or 2.65%, to $7.35. Dress Barn ( DBRN) gained as the Suffern, N.Y.-based retailer posted improved fourth-quarter results Tuesday, with same-store sales gains at its namesake chain offsetting declining results at its maurices stores. The retailer earned $24.4 million, or 35 cents a share, for the quarter ended July 29. Wall Street was looking for earnings of 31 cents a share. A year earlier, Dress Barn earned $33.6 million, or 54 cents a share, but those results were boosted by a $37.7 million litigation reserve reversal. Excluding that gain, year-ago earnings were 22 cents a share. The company's sales increased 12% to $343.3 million from $307.1 million a year earlier, in line with Wall Street's expectation of $343.1 million. Same-store sales, or comps, rose 7%. The company's dressbarn stores saw a 12% same-store sales gain, but comps fell 3% at maurices, which caters to young women. The company operates about 799 dressbarn stores and 548 maurices stores. Dress Barn reiterated its forecast for fiscal 2007 earnings of $1.25 to $1.30 a share, compared with a profit of $1.15 a share for the recently ended year. Analysts predict earnings of $1.28 a share. Dress Barn was trading up $1.05, or 4.8%, to $22.85. BearingPoint ( BE) plummeted after a
court ruled the McLean, Va.-based technology consultant company is in default on some debt due to a failure to file timely regulatory reports. The company said it would appeal the Sept. 19 ruling by the state Supreme Court for New York County, which applied to its 2.75% Series B convertible subordinated debentures due in 2024. BearingPoint said the ruling could cause it to have to place a "going concern" statement in its yet-to-be-filed 2005 annual report. The company said it will defer making that filing beyond Sept. 30, "until these uncertainties are addressed." BearingPoint, which is delinquent on its filings and doesn't expect to come current until at least next spring, also warned that it expects to be "significantly below the low end of its GAAP operating income and cash guidance ranges for 2006." The company blamed finance and accounting charges tied to an internal financial overhaul. Shares sank $1.98, or 23.35%, to $6.50.