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  • ( Updated from 6:40 p.m. ET Monday)

    Mobile phone maker Nokia ( NOK - Get Report) joined the preannouncement parade this morning, saying that its second-quarter earnings will be hurt by an industry slowdown. The company said sales growth in the second quarter will be below 10% compared with the year-ago period.

    The company forecast second-quarter earnings of 0.15 euros to 0.17 euros a share (about 13 cents to 14 cents a share). Analysts currently expect earnings of 18 cents a share.

    Earnings/revenue reports and previews

    Computer chip supplier Exar ( EXAR) lowered its first-quarter earnings guidance, placing the blame on a slowdown in communications industry demand. The company's new guidance calls for earnings of 2 cents to 4 cents a share in the first quarter, on revenue that the company expects to decline 35% to 45% from the prior quarter. Exar reported a top line of $21.6 million in the fourth quarter.

    Wall Street expects Exar to post first-quarter earnings of 7 cents a share.

    Tenet Healthcare ( THC) said this morning that it will beat the current consensus earnings estimate of 61 cents a share for the fiscal fourth quarter, thanks to high patient admissions numbers. The company will also take a $35 million charge for debt retirement.

    After Monday's Close

    Affymetrix ( AFFX) lowered its guidance, saying second-quarter revenue would likely be $44 million to $50 million, translating into a loss of $4 million to $7 million, or 6 cents to 12 cents a share, before acquisition-related charges.

    Analysts expect a second-quarter loss of 2 cents a share. The company attributed the reduced revenue guidance to lower-than-expected orders for its GeneChip technology.

    Electronics for Imaging ( EFII), a printing-components maker, reaffirmed its earlier guidance, saying that second-quarter earnings are "on track." Analysts expect income of 24 cents a share for the quarter.

    Digital satellite TV provider Hughes Electronics ( GMH) announced after the bell Monday that it expects second-quarter earnings before interest, taxes, depreciation and amortization to hit the $75 million mark, the top edge of the company's previous guidance range.

    Still, the company lowered the number of net new subscribers to its DirecTV service to 175,000 in the second quarter, well below earlier guidance of 275,000 to 350,000. Hughes blamed the slowing U.S. economy and slower growth in its rural subscriber base for the shortfall.

    For the full fiscal year, Hughes projected revenue growth of about 20% compared with last year, at the lower portion of the previous guidance of 20% to 25% growth. Analysts are calling for a loss of 40 cents a share for the full fiscal year.

    Corporate communications firm Infonet Services ( IN) posted fourth-quarter earnings of 2 cents a share, in line with analysts' estimates and up from income of a penny a share in the same period last year. The company attributed the increase to strong revenue growth from new contracts and sales in its core network services.

    Net income in the fourth quarter reached $8.9 million, up from $5.5 million in the fourth quarter last year. Revenue for this quarter grew to $189.9 million, up from $154.5 million in the year-ago period, while revenue for the full year hit $661.9 million, up from $481.4 million last year. The company reiterated its revenue guidance for fiscal 2002, forecasting growth of more than 25%.

    Web hosting company NaviSite ( NAVI) posted a third-quarter loss of 50 cents a share, beating the consensus estimate of a loss of 56 cents a share.

    The company projected a fourth-quarter loss of 47 cents to 49 cents a share, matching Wall Street's forecast. The company also said its revenue in the fourth quarter should range from $26 million to $27 million.

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    Amgen ( AMGN - Get Report) and Praecis Pharmaceuticals ( PRCS) said they received a letter from U.S. regulators stating that their new drug application for a prostate cancer treatment is "inadequate for approval." The two biotech companies plan to meet with the Food and Drug Administration "in an effort to clarify the various deficiencies cited in the FDA's letter, and to discuss what further steps need to be taken before the application may be approved."

    Burger King, a unit of London's Diageo ( DEO), said this morning that it would set up a safety program at its restaurants after the death of a four-year old boy at one of its St. Louis stores. The company plans to replace nets on the playgrounds attached to its fast-food shacks, and install special "no climb" nets in areas not meant for children to play on.

    Telecom provider Verizon Communications ( VZ) said this morning that it filed a lawsuit against Covad Communications ( COVD), a high-speed digital Internet service provider. Verizon alleged that Covad had blamed its own failures on Verizon's service.

    The suit claims that former Covad employees "were 'pressured' and 'badgered' into issuing false reports about Verizon's services and 'reprimanded' if they failed to comply."

    After Monday's Close

    The Transportation Department said that the U.S. and the U.K. would hold informal talks later this month to discuss liberalizing air transportation. The news was reported after a meeting earlier between Transportation Secretary Norman Mineta, Donald Carty, the CEO of American Airlines, a unit of AMR ( AMR), and British Air ( BAB) CEO Rod Eddington.

    The U.S. has been pushing for an "open skies" policy, but the U.K. has apparently resisted, as it may hurt the strong position that British Air and Virgin Atlantic have at London's Heathrow Airport.

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