12:34 pm Nasdaq Comp +6.7 underperforming on a percentage basis today but sets new session high in recent trade -- Dow +52, S&P +4 (:TECHX) :
12:14 pm Nasdaq Comp +4.4 joins Dow +50 and S&P +3.2 at new intraday rebound highs (:TECHX) :
12:10 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
- MDT (52.35 +4.93%): Beat on EPS by $0.07, beat on revs; guided FY14 EPS in-line; announced data from largest real-world patient population confirm strong safety profile and clinical efficacy of Renal Denervation with the Symplicity System.
- AZO (424.31 +3.73%): Beat on EPS by $0.06, reported revs in-line; Q3 same store sales decreased 0.1%.
- HD (78.39 +2.12%): Beat on EPS by $0.07, beat on revs; raised FY14 EPS below consensus, raised FY14 revs above consensus; Q1 comps +4.3%; raised FY14 comp guidance.
- CCL (33.47 -5.24%): Lowered guidance: sees FY13 revs -3 to -2% (lowered from flat), sees FY13 EPS of $1.45-1.65 (lowered from $1.80-2.10); downgraded at UBS, William Blair, Wells Fargo, and at HSBC Securities.
- FMX (110.22 -3.42%): Heard downgraded to Underperform at Credit Suisse.
- ARMH (47.94 -3.91%): Heard named a short Research Tactical Idea at Morgan Stanley.
- CLWR (3.4 +4.45%): Co confirmed that Sprint (S) increased cash offer for CLWR to $3.40/share (from $2.97/share).
- YOKU (20.82 +4.31%): Tgt raised to $28 from $21 at T.H. Capital.
- LPI (19.99 +4.28%): Announced a $438 mln sale of Anadarko Basin assets to affiliates of EnerVest.
- WCG (51.03 -5.24%): Downgraded to Neutral from Buy at Goldman.
- BBY (25.67 -4.25%): On conf. call, co reported adj. EPS including recently divested European business of $0.36 on rev of $10.8 bln vs. ests $0.26 and $10.68 bln; sees Q2 EPS and gross profit lower YoY (in-line).
- KOS (11.41 -4.28%): Announced results from Sipo-1 exploration well; oil and gas shows evidenced during drilling indicated a working petroleum system; however, the well failed to encounter commercial reservoirs.
12:08 pm Herbalife disclosed that the audit committee of the company's Board of Directors engaged PricewaterhouseCoopers to serve as its new independent registered public accounting firm (shares halted) (HLF) : Co disclosed "As previously disclosed, on April 8, 2013, KPMG notified HLF that KPMG was resigning, effective immediately, as the Company's independent accountant. KPMG stated it had concluded it was not independent because of alleged insider trading in the Company's securities by one of KPMG's former partners who, until April 5, 2013, was the KPMG engagement partner on the Company's audit. KPMG advised the Company it resigned as the Company's independent accountant solely due to the impairment of KPMG's independence resulting from its now former partner's alleged unlawful activities and not for any reason related to the Company's financial statements, its accounting practices, the integrity of the Company's management or for any other reason....On May 21, 2013, the Audit Committee of the Company's Board of Directors engaged PricewaterhouseCoopers to serve as its new independent registered public accounting firm to audit the Company's financial statements for its fiscal year ending December 31, 2013 and to re-audit the Company's financial statements for the fiscal years ended December 31, 2010, 2011 and 2012...As part of the engagement process, the Company and PwC identified certain non-audit services that PwC or another firm in the global network of firms had performed for the Company that are not permitted under the SEC's auditor independence rules."
12:07 pm European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE: + 0.7%
- Germany's DAX: + 0.2%
- France's CAC: + 0.3%
- Spain's IBEX: -0.6%
- Portugal's PSI: -0.3%
- Italy's MIB Index: -0.5%
- Irish Ovrl Index: -0.2%
- Greece ASE General Index: -4.0%
12:06 pm Dow +47 and S&P +2.7 extend rebound off morning lows -- Nasdaq Comp +3 (SPY) :
11:47 am JPMorgan Chase Shareholder Voting Results- Vote to split roles was voted at 33% in favor (67% against); All directors re-elected by majority of votes; Dimon got 98.8% of the votes for Director re-election (JPM) : Briefing Note: Last year the vote was 40% in favor of splitting the role of Mr. Dimon.
11:47 am Boston Scientific long term data demonstrate bronchial thermoplasty treatment benefits persist out to five years in patients with severe asthma (BSX) : Five-year data from the Asthma Intervention Research 2 (AIR2) clinical trial presented today demonstrated that the Boston Scientific Alair Bronchial Thermoplasty (BT) System continues to show therapy benefits in adult patients with severe uncontrolled asthma. Bronchial Thermoplasty was shown to provide long term asthma control, demonstrated by a sustained reduction in the rate of severe exacerbations and emergency room visits over a five year period after treatment. Results were presented at the annual meeting of the American Thoracic Society (:ATS) in Philadelphia. The data demonstrated that over five years following BT there was a 44% average decrease in percent of patients having severe exacerbations compared to the year prior to BT, 48% average decrease in severe exacerbation event rates compared to the year prior to BT, 88% average decrease in ER visit event rates compared to the year prior to BT.
11:37 am Stock indices extend bounce -- Dow +34, S&P +2, Nasdaq Comp +2.5 (SPY) : Hold above intraday level (11:17) allowed for follow through upticks in recent trade. Watching 1668.43 (retrace) to 1669 and 1666 from here for intraday read.
11:30 am Moneygram and CUP International announced significant expansion of their emergency cash service for China Union Pay credit card holders (MGI) : The expansion now enables account holders to access emergency funds from most countries within the MoneyGram network. Previously, the service was available in 20 countries.
11:17 am Stock indices bounce to retracements (SPY) : The S&P -0.8 and Dow +11 reached the 38% retracement of today's slide (Nasdaq Comp +0.4 62%) after holding near supports (10:50 update) and have paused. An S&P posture above 1664 during this pause would keep the door open to a morning follow through attempt. Retracements above are at 1667.33 and 1668.43.
11:14 am July crude oil drops below $96/barrel, hits a new session low, now at 95.79/barrel, down 1.2% (:COMDX) :
11:03 am Currency Commentary: Dollar Bid Ahead of Bernanke Testimony (:SUMRX) :
- The Dollar Index was able to rally back above the 84 level this morning. There has been little in the way of news which suggests it may be a late bid for the dollar ahead of tomorrow's testimony by Fed Chairman Ben Bernanke as well as the latest FOMC minutes due out at 2pm ET.
- The euro was chopped lower but is holding the 1.2840 area and is now attempting to regain some early losses. It was a quiet night in Europe with the most notable news being Spain selling EUR 3.51 bln of 3- and 9-month bills which was at the high end of expectations. The yields on the bills increased with the 3-month rising from 0.12% to 0.33% while the 9-month yield actually slid lower to 0.787% for, 0.789%. The news comes as the Troika moves into Spain for the third review of the Spanish banking system.
- The pound tumbled below the 1.52 level as news that inflation across all aspects (retail, consumer, producer) outside of Housing came in lower than expected. The CPI number still remains above the BoE target (2.4% vs 2.0% target) which will cause Mervyn King to write yet another letter to parliament. The lower than expected inflation rates may raise speculation that the Bank of England would look to extend its QE programs in order to spur growth.
- The yen fell back to the 102.86 level overnight. 102.20 held resistance as the yen tried to rally late yesterday and overnight. Part of the weakness has been comments from the Japanese economic minister who backtracked on some of his hawkish comments he made on Monday. A WSJ story this morning also noted that senior Japanese officials were not concerned with the recent decline of the yen (BONDX, FOREX).
11:01 am Brinker announces deal to acquire 11 Chili's franchise restaurants in Canada (EAT) : Co announces a signed agreement with longtime Canadian franchise partner, Speedy Creek (2011) Ltd. Under the terms of the agreement, a subsidiary of Brinker will acquire 11 existing Chili's restaurants in the province of Alberta, which generate approximately $35 million in annual sales. The transaction is projected to close in June. In addition to the 11 restaurants, Brinker also will retain the extensive industry experience and expertise held by the Speedy Creek team, which will be leveraged to further the brand's development in Canada. In 1991, Speedy Creek became Chili's first international franchisee, bringing the flavors of the Southwest to this key global market.
11:00 am NRG Energy correction: Co did not raise $15 mln; NRG was an investor in Eos Energy Storage's $15 mln Series B financing round (NRG) : Earlier, we reported NRG raised $15 mln from strategic investors to advance transformative energy storage technology, this was incorrect and that comment has been removed.
NRG was actually an investor in Eos Energy Storage's $15 mln Series B financing round.
10:56 am LPL Financial issues statement on settlement with FINRA; says 'we have taken steps to train our employees on escalating compliance issues' (LPLA) : Co issued a statement regarding FINRA's announcement of its settlement with LPL Financial concerning email management. The statement is as follows: "In September 2011, we reported to FINRA issues relating to the surveillance and retention of emails. We cooperated fully with FINRA throughout its ensuing investigation. We recognize the importance of having effective policies, procedures and systems to review and retain emails, and we very much regret our lapse of oversight. We have undertaken a comprehensive redesign of our email systems and associated compliance policies and procedures, and have engaged independent experts to assess and validate our approach. FINRA's action identified that certain LPL personnel had information that would have uncovered the DBA issue earlier than senior management was aware and we have taken steps to train our employees on escalating compliance issues... The Company does not anticipate any related charges in its operating results for the current quarter."
10:53 am Innovative Solutions announces it is providing its Utilities Management System for the recently announced Pilatus PC-24 under a multi-year production contract (ISSC) : This award complements the company's backlog that has grown more than five fold, this fiscal year, to the equivalent of more than three years of production.
10:50 am S&P -1.9 and Nasdaq Comp -4.8 test first level supports -- Dow +3 held slightly above (SPY) : First level supports from The Technical Take were tested on the morning slide at 1662/1660 S&P (session low 1662), 3487/3480 Nasdaq Comp (session low 3486) with the Dow holding slightly above a similar level at 15315/15305 (session low 15325).
10:40 am Outperforming Dow +5 attempting to stabilize after limited slip into the red -- S&P -1.6, Nasdaq Comp -5.3 (SPY) :
10:30 am Boeing begins certification testing on 747-8 performance improvements (BA) : A Boeing 747-8 Intercontinental successfully completed its first test flight this week with a package of performance improvements including enhanced GE engines. This package is designed to improve the fuel efficiency of the jetliner. The airplane Performance Improvement Package (PIP) includes improvements to the GEnx-2B engines and Flight Management Computer (FMC) software.
10:24 am Further declines off early highs for stock indices -- Dow +11, S&P -1.1, Nasdaq Comp -6.3 (:TECHX) : Losses are broad based with some relative weakness in: biotech IBB, Technology XLK, Housing XHB, Pharma PPH, Staples XLP, Internet FDN.
10:21 am Supervalu announces early settlement of tender offer for all of its 8.0% Senior Notes due 2016 (SVU) : A total of $372,018,000 aggregate principal amount of the Notes were validly tendered (and not validly withdrawn) as of 12:00 midnight, New York City time, at the end of May 15, 2013. All of such tendered Notes were accepted for payment and settlement was made by SUPERVALU on May 21, 2013.
10:11 am Stock indices pull back off first hour highs -- Dow +37 dips 30 points, S&P +1.7, Nasdaq Comp +1.2 (SPY) :
10:06 am Green Mtn Coffee tests its week long range top/52-wk high from last week at 81.70 and pauses -- session high 81.68 (GMCR) :
10:05 am Con-way unit announced a major investment in Fond du Lac (CNW) : Con-way Freight announced a major investment in the Fond du Lac community with plans to build a new, state-of-the-art 96-door, 47,000-square-foot freight service center in the city. The new $8 million facility will serve as the local hub from which the company will provide daily freight pickup and delivery services, connecting the greater Fond du Lac metropolitan area with one-, two- and three-day service points in Con-way Freight's nationwide network, as well as Mexico and Canada.
10:03 am Bank of America assisted 366,000 customers with national mortgage settlement programs through March 31 (BAC) : Co completed and approved assistance to about 320,000 customers totaling $29.2 billion in aggregate relief across all settlement programs through March 31. Nearly 46,500 additional homeowners who are making timely payments on loan balances that exceed the current value of the property have received offers of life-of-loan interest rate reductions to lower their monthly costs.
10:00 am Synergy Pharma presents plecanatide results from a large multicenter clinical study at late-breaking abstract session during Digestive Disease Week 2013 (SGYP) : Co presented positive safety and efficacy results from its large multicenter trial of plecanatide in patients with chronic idiopathic constipation (:CIC) at Digestive Disease Week (:DDW) in Orlando, FL. Plecanatide, Synergy's investigational drug for the treatment of CIC and irritable bowel syndrome with constipation (IBS-C), is a guanylate cyclase-C (GC-C) agonist. This novel drug mimics the function of the natural human peptide hormone, uroguanylin. The clinical trial was designed to evaluate whether plecanatide could increase the number of complete spontaneous bowel movements (CSBMs), as well as benefit other bowel measures associated with the constipated state such as stool consistency and straining, along with general quality of life, in people with CIC. In the study, 951 patients with CIC were randomized to four study arms to determine the efficacy and safety of three oral doses of plecanatide (0.3, 1.0, or 3.0 mg, daily), compared to placebo, over the course of a 12-week dosing regimen.
Efficacy: Increasing efficacy was observed at increasing dose levels of plecanatide. The greatest improvement in CSBM was observed at the 3 mg plecanatide dose. Participants achieved their first spontaneous bowel movement after ingestion of 3 mg plecanatide in less than half the time of those taking placebo (median time of 12.5 hours plecanatide vs. 27.3 for placebo; pSafety: In this large multicenter trial, all doses of plecanatide studied appeared to be safe and well tolerated. There were no serious adverse events attributed to study treatment.
9:56 am AVG Tech acquires online privacy firm PrivacyChoice, terms not disclosed (AVG) :
9:53 am Dow +62 sets new session/all time high, S&P +5.6 and Nasdaq Comp +7.3 set new session highs (SPY) :
9:53 am St. Jude Medical announces the start of its landmark EnligHTNment clinical study (STJ) : This is the largest randomized, prospective trial to determine whether renal denervation and medication offers additional health benefits beyond lowering blood pressure in patients with uncontrolled hypertension. The EnligHTNment study will evaluate the EnligHTN Multi-Electrode Renal Denervation System and its ability to reduce the risk of major cardiovascular events such as heart attack, stroke, heart failure and cardiovascular death.
9:48 am Energy Select Sector yesterday's top performer slide into the red after limited early follow through attempt (XLE) : WFT -2.4%, ESV -1.1%, RIG -1%, DO -0.9%, BHI -0.7%, FTI -0.8%, CAM -0.8%, APC -0.5%.
9:46 am Clearwire resumes trading (CLWR) :
9:46 am Globecomm Systems has won contracts with Chariton Valley, Evolve Broadband and Indigo Wireless to provide them with Globecomm's LTE solutions (GCOM) :
9:44 am Technology Select Sector SPDR lagging in early trade hovering near yesterday's high bar low at 32.09 (XLK) : AAPL -1.9%, QCOM -0.5%, CSCO -0.5%, GOOG -0.3%, INTC -0.3%, T -0.5%, VZ -0.3%.
9:43 am Freddie Mac will not issue a Reference Notes security in May (FMCC) : The company's 2013 Reference Notes calendar designates dates that it may use to announce the issuance of Reference Notes securities.
9:38 am Electronics retailers Best Buy (BBY -4%) and hhgregg (HGG -6%) getting hit following quarterly results; both have more than doubled YTD (BBY) :
9:38 am Modestly firmer start, outperforming Dow +45 just 10 points shy of Monday's high -- S&P +3.5, Nasdaq Comp +5.1 (SPY) : Dow leadership from: HD +2.4%, JPM =1.4%, GE +0.7%, AXP +0.7%, CAT +0.6%, UTX +0.4%, MCD +0.3%.
9:36 am Early relative strength in Home Const ITB, Biotech IBB, Health XLV, Telecom IYZ, Transports IYT (:TECHX) :
9:35 am Medtronic (+6%) breaks out to 5 year high following upside Q4 results and in-line FY14 guidance (MDT) :
9:34 am Clearwire to resume trading at 9:45 ET (CLWR) :
9:27 am On The Wires (:WIRES) :
- Xoom (XOOM) and Vesta announced a partnership to offer international money transfers using mobile devices.
- Mitsubishi Electric will integrate Echelon's (ELON) Open Smart Grid Protocol into its lineup of smart meter products, which are designed for international markets.
- inContact (SAAS) announced that an Original Equipment Manufacturer in the transportation industry will deploy the inContact cloud portfolio.
- MovieTickets.com has added Carmike Cinemas (CKEC). MovieTickets.com is currently providing ticketing services for Carmike's newly acquired Rave locations, and has launched the process of rolling out the additional 2,200 screens in the Carmike circuit.
- Numerex (NMRX) and Huawei have entered into a global alliance. The partnership will result in a Huawei intelligent communication device embedded with Numerex's core network M2M technology.
- IsoRay (ISR) has entered into an exclusive international distribution agreement with IASIS Medical for the sale of IsoRay's complete product line in Greece.
- Tyler Technologies (TYL) has signed a contract with Parker County, Texas, to implement Tyler's Odyssey court case management solution under a 5-year software as a service agreement.
- Trident Insurance Services, a member of Argo Group International (AGII), has formed an exclusive business relationship with McGowan to offer access to its public entity insurance program in Pennsylvania.
9:25 am SL Green Rlty announces redemption of all outstanding shares of 7.625% series C cumulative redeemable preferred stock (SLG) : Co announced today it will redeem all ~7.7 mln outstanding shares of its 7.625% Series C Cumulative Redeemable Preferred Stock. The shares of Series C Preferred Stock will be redeemed at redemption price of $25.00 per share of Series C Preferred Stock plus ~$2.69 mln in accumulated and unpaid dividends on such Series C Preferred Stock through the Redemption Date. From and after the Redemption Date, the only remaining rights of the holders of shares of the Series C Preferred Stock will be to receive payment of the Aggregate Redemption Price.
9:25 am AstraZeneca presents results of two pivotal Phase III studies of naloxegol showing the 25 mg dose of the investigational drug met its primary and secondary endpoints for efficacy and showed a safety profile consistent with previous studies (AZN) : Data was presented at the Digestive Disease Week meeting in Orlando, Florida. Naloxegol is a peripherally-acting mu-opioid receptor antagonist, which has been specifically designed for the treatment of opioid-induced constipation (OIC), a common and often debilitating side effect of prescription opioid pain medicines. The Phase III studies, KODIAC-04 and -05, were 12-week, multicenter, randomized, double blind, placebo-controlled pivotal trials that evaluated 12.5 mg and 25 mg doses of naloxegol, administered once-daily. The primary endpoint in both trials was percentage of OIC responders, versus placebo, over 12 weeks of treatment. The secondary endpoints included the 12-week response rate in a laxative inadequate response population, the median time to first spontaneous bowel movement (SBM) and the number of days per-week with at least one bowel movement. Plans for naloxegol will be finalized over the coming months, incorporating the outcome of ongoing discussions with health authorities in the US, EU and Canada. Naloxegol is part of the exclusive worldwide license agreement announced on 21 September 2009, between AstraZeneca and Nektar Therapeutics (NKTR). Naloxegol was developed using Nektar's oral small molecule polymer conjugate technology.
9:23 am Gold and silver futures fall to new session lows; June gold is now -1.4% at $1365.00/oz, July silver is -1.9% at $22.17/oz (:COMDX) :
9:22 am On The Wires (:WIRES) :
- Maxwell Technologies (MXWL) announced Shanghai ISSON Power Quality installed 126 of Maxwell's 125V Heavy Transportation Modules in a power system that operates 26 ship-to-shore cranes for loading and unloading container ships at the Yangshan Deep-Water Port.
- Chembio Diagnostics (CEMI) entered into an international assembly and distribution agreement with Labtest Diagnostica SA for products based upon Chembio's patented Dual Path Platform in Brazil and potentially other markets outside the U.S.
- Ciena (CIEN) announced that the Russian carrier RASCOM is deploying its 6500 Packet-Optical Platform to support the 100G upgrade and network expansion of a route connecting Russia to Western Europe.
- ZAGG (ZAGG) introduced two new keyboard accessories for the Apple (AAPL) iPad mini.
- Over the past several months, multiple regional operators in the U.S. have selected Ericsson (ERIC) as their LTE partner of choice.
- L-3 Communications (LLL) has been awarded a $38.5 mln contract from the Commonwealth of Australia to supply 51 Hawkeye III Lite 1.2-meter Very Small Aperture Terminals, as well as training and long-term sustainment services.
- Amazon.ca (AMZN) announced the launch of Amazon Cloud Drive on Amazon.ca.
- Graycliff Partners announced that Iron Mountain (IRM) has acquired Information Storage Consolidation, a records storage business with operations in Texas, Michigan, and Florida. Financial terms were not disclosed.
- ExactTarget (ET) extended its Pardot business-to-business marketing automation to Facebook (FB) today.
- SuperTooth has teamed up with VOXX Accessories, a subsidiary of Voxx (VOXX) to roll out a co-branded line-up of portable audio accessories under the Acoustic Research brand name beginning with the launch of the ARS60 Bluetooth speaker.
9:07 am Philip Morris International to acquire remaining 20% interest in its Mexican subsidiary; projected to be immediately marginally accretive (PM) : PM announces that Grupo Carso, S.A.B. de C. V. will sell to PM its 20% interest in Philip Morris Mexico (PMM), S.A. de C.V., PM's Mexican tobacco business.
- The final purchase price, currently estimated to be approximately $700 million, will be determined by a pre-agreed formula. It is subject to a potential adjustment based on PMM's actual performance over three years ending two fiscal years after the closing of the purchase.
- The transaction, as a result of which PM will own 100% of PMM, is expected to be completed by September 30, 2013, subject to the approval of the Mexican antitrust authority, and is projected to be immediately marginally accretive to PM's earnings per share as of the fourth quarter of 2013.
9:04 am Biolase declares a one-half percent stock dividend payable on June 28, 2013, to stockholders of record on June 14, 2013 (BIOL) :
9:03 am China Gengsheng Minerals announces delay in Q1 filing quarterly report and preliminary financial results due to turnover in accounting staff (CHGS) : Co announces the delayed filing of its Quarterly Report on Form-Q for its first quarter ended March 31, 2013 because it is still finalizing the financial statements. There was a delay in closing the books because of turnover in some of the Company's accounting staff in China. We anticipate filing our Form 10-Q no later than June 14, 2013.
Notwithstanding the delay in preparing our Form 10-Q, co estimates that Net Loss, Total Assets, Total Liabilities and Total Equity for the first quarter of 2013 to be around $3.8 mln, "58 mln, "21 mln and $37 mln respectively.
9:03 am Sempra Energy unit Sempra U.S. Gas & Power & Consolidated Edison (ED) Development Announce Solar Partnership (SRE) : Co announced an agreement to partner in two of Sempra U.S. Gas & Power's solar power facilities, the 150-megawatt (MW) Copper Mountain Solar 2 plant near Las Vegas and the 150-MW Mesquite Solar 1 power plant near Phoenix.
Under the sales agreement, each co will own a 50-percent interest in the two solar facilities, which are among the largest photovoltaic plants in the U.S. Sempra U.S. Gas & Power will continue to provide operations and maintenance services to both plants.
9:03 am Baxter receives marketing authorization for HyQvia in EU (BAX) : Co and Halozyme Therapeutics (HALO) announced that the European Commission has granted Baxter marketing authorization in all European Union (EU) Member States for the use of HyQvia (solution for subcutaneous use) as replacement therapy for adult patients with primary and secondary immunodeficiencies. The product is a combination of human normal immunoglobulin and recombinant human hyaluronidase, which facilitates the dispersion and absorption of the IGSC.
9:02 am Clearwire confirms Sprint increases cash offer for CLWR to $3.40/share (from $2.97/share)... CLWR is halted (CLWR) : Co confirmed that it has received a revised offer from Sprint (S) to acquire the ~50% stake in the co it does not currently own for $3.40 per share (previous offer: $2.97/share).
Clearwire plans to adjourn its Special Meeting of Stockholders, which is scheduled to be held at 10:30 a.m. Pacific time on Tuesday, May 21, 2013, without conducting any business. The Special Meeting of Stockholders will reconvene on Thursday, May 30, 2013, at 9:30 a.m. Pacific time.
9:02 am Rexnord beats by $0.01; misses on revs; sees Q1 EPS and revs below consensus; sees FY14 EPS above consensus (RXN) : Reports Q4 adjusted EPS of $0.32 vs $0.31 CIQ est; revs declined 1% YoY to $540 mln vs $$542.9 mln CIQ est.
- Co sees Q1 EPS of $0.17-0.19 vs $0.23 CIQ est
- Co sees Q1 revs of $489-499 mln vs $512.7 mln CIQ est.
- Co sees FY14 EPS of $1.10-1.18 vs $0.96 CIQ est
- Free cash flow to exceed adjusted net income.
- Qualitatively, co expects YoY sales growth in second half to be higher than the first half of the year
- guidance excludes any impact from acquisitions
9:02 am I.D. Systems has been awarded a contract by transportation services company to deploy I.D. Systems' VeriWise Track and Trace system (IDSY) : The contract covers a total of approximately 1,000 assets for a three-year term. The contract is not expected to materially impact revenue for the current quarter, but will increase the company's recurring revenue stream.
9:01 am EDAP TMS SA entered into definitive agreements with certain institutional investors for registered direct placement of $12 mln of ordinary shares in form of ADSs at price of $4.00/share, with warrants attached (EDAP) : The warrants issued to the investors will allow them to purchase up to 1.5 million ordinary shares. The warrants have an exercise price of $4.25 per share and are exercisable beginning six months from the date of their issuance for a period of five years. The offering is expected to close on or about May 24, 2013 subject to satisfaction of customary closing conditions.
H.C. Wainwright & Co., LLC, acted as the exclusive placement agent for the transaction.
8:59 am United Tech provides preliminary results of debt tender offers, extension of early tender time for offers and increase in offer size for 2015 Notes (UTX) : Co announces the early tender results as of 5 pm ET on May 20, 2013 for the previously announced debt tender offers for two series of outstanding notes issued by Goodrich, which is now a wholly owned subsidiary of UTC, and one series of outstanding notes issued by UTC.
As of that time, ~$102.9 mln principal amount of the 2016 Notes, ~$97.5 mln principal amount of the 2019 Notes and ~$673.4 mln principal amount of the 2015 Notes were validly tendered and not validly withdrawn in the Offers.
8:58 am Bank of America announces preferred stock public offering (BAC) : Co announces offering of depositary shares, each representing a 1/25th interest in share of Non-Cumulative Perpetual Preferred Stock, Series U, with liquidation preference of $25,000 per share. BofA Merrill Lynch will serve as sole book-running manager for the offering.
8:58 am Clearwire halted, news pending (CLWR) :
8:58 am US Airways announces offering of $400 million in senior notes due 2018 (LCC) :
8:57 am European Markets Update: FTSE +0.1%, DAX -0.3%, CAC -0.2%, IBEX -0.8% (:SUMRX) : European indices trade generally lower with peripheral markets leading to the downside. The first half of the session has been mostly quiet after investors received just a handful of notable economic releases. Germany's PPI rose 0.1% year-over-year (0.2% expected, 0.4% previous) while the month-over-month reading slipped 0.2% (-0.1% forecast, -0.2% prior). In the United Kingdom, CPI came in at 2.4% year-over-year (2.6% expected, 2.8% prior) while core CPI was reported at 2.0% year-over-year (2.3% expected, 2.4% previous). In addition, House Price Index rose 2.7% (2.3% consensus, 1.9% prior). Also of note, input PPI declined 2.3% year-over-year (-1.1% forecast, +0.1% prior) while output PPI rose 1.1% year-over-year (1.5% expected, 1.9% prior).
With the European summit set to begin tomorrow, reports indicate German Chancellor Angela Merkel is considering implementing treaty changes to give more power to Brussels.
- The United Kingdom's FTSE is higher by 0.1% as miners display strength. Polymetal International and Rio Tinto trade higher by 8.4% and 3.4%, respectively. On the downside, Carnival is off by 6.6% after issuing downside guidance.
- Germany's DAX trades lower by 0.3% as financials lag. Commerzbank is down 4.3% and Deutsche Bank is off by 2.1% after receiving a JPMorgan Chase downgrade.
- In France, the CAC is off by 0.2% with financials underperforming as well. BNP Paribas and Credit Agricole trade with respective losses of 2.8% and 1.7%.
- Spain's IBEX is down 0.8% as most components trade in the red. Banco Bilbao Vizcaya Argentaria is off by 1.5%.
8:53 am On The Wires (:WIRES) :
- DSW (DSW) announced the opening of a new store in South Shore Plaza in Braintree, MA on Saturday, May 18th.
- LGS Innovations, an independent subsidiary of Alcatel-Lucent (ALU) has been selected for a multiple-award blanket purchase agreement by the U.S. Geological Survey to expand and improve its wireless local area network infrastructure. The BPA was awarded under the GSA Schedule 70 vehicle and has a maximum value of $2.9 mln over three years.
- BNY Mellon (BK) has been appointed by UBIC as depositary bank for its ADR program, the first ADR capital raising by a Japanese firm since 2009.
- Kyocera's (KYO) subsidiary in charge of the production of high-density wiring boards for servers and network equipment, Kyocera SLC Technologies, announced that on Friday, May 17 it had broken ground on a second manufacturing facility at its Kyoto Ayabe Plant in order to further expand its business.
- Mindray Medical International (MR) announced that on April 8, 2013, it filed with the SEC an Annual Report on Form 20-F that included audited financial statements for the year ended Dec 31, 2012.
- Harmonic (HLIT) announced that Thai Global Network has chosen Harmonic production and playout solutions.
- URS (URS) has been awarded an IDIQ, multiple award contract from the U.S. Army Engineering and Support Center in Huntsville, Alabama, to provide design-build services for the Medical Repair and Renewal Program in the continental U.S. and at overseas locations. The contract has a one-year base and four one-year option periods. The program has a maximum, aggregate value of ~ $585 mln to the seven awardees.
- Polycom (PLCM) announced that the Innovation Centre at Karolinska University Hospital Sweden has launched a surgery program that makes use of video collaboration technology from Polycom.
- Scientific Games (SGMS) has signed a seven-year instant ticket and cooperative services contract with Loteria Electronica Internacional Dominicana. Co will supply instant lottery tickets and related cooperative services, including game design, a back office instant ticket system, marketing, training and support for inventory management and distribution.
- Pandora (P) announced the launch of Pandora Premieres, a station that offers listeners the opportunity to preview upcoming album releases in their entirety before they go on-sale.
- Itron (ITRI) has signed a five-year contract with British Gas to provide a full suite of services in support of more than 1.25 mln electricity prepayment customers throughout the UK.
8:52 am Given Imaging announces new data highlighting PillCam COLON comparability to colonoscopy in detecting adenomas; secondary analysis of data shows sensitivity for detecting adenomas that are at least 6 mm and 10 mm to be 88% and 92% respectively and specificity to be 82% and 95% respectively (GIVN) : Dr. Rex presented data from the 16-site study, podium presentation 907, Accuracy of PillCam Colon 2 for Detecting Subjects with Adenomas = 6 mm. Overall, 884 patients at average risk for colon cancer as defined by the U.S. Multi-Society Task Force guidelines on colorectal cancer screening were enrolled into the pivotal study. Following bowel prep, the patients visited the investigator's office in the morning and ingested a PillCam COLON capsule endoscope, which transmitted images to a wireless recorder worn by patients as they went about their daily routine for up to 12 hours. The resulting video sequences were stored and saved until after the patients had a traditional optical colonoscopy four to six weeks later. The capsule results were unblinded and reviewed after the traditional colonoscopy was performed and then the two video sequences were compared with the goal of identifying all polyps that were at least 6 mm and then those at least 10 mm. When doctors found evidence of a polyp on the PillCam COLON sequences that they didn't see during the colonoscopy, a follow-up colonoscopy was performed to confirm or rule out the capsule finding.
The data analysis applied to the subset of subjects showed PillCam COLON had 88% sensitivity and 82% specificity in detecting adenomas at least 6 mm in size and 92% sensitivity and 95% specificity in detecting adenomas at least 10 mm in size.
Primary Results of the Colon Capsule Endoscopy Observatory "ONECC", investigators led by Jean Christophe Saurin, M.D., Ph.D., Hospices Civils de Lyon, Lyon, France, evaluated the feasibility of PillCam COLON in a general practice setting and also in a variety of populations including in patients who had a failed colonoscopy, are contra-indicated for colonoscopy or those who refused colonoscopy. The observational study collected data from 94 centers enrolled in the French national colon capsule endoscopy network (:ONECC). PillCam COLON identified 233 polyps in 108 of the 245 subjects. Significant polyps, defined as polyps larger than 5 mm or cases of at least 3 polyps, were detected in 22.9% of patients with a failed colonoscopy, 30.2% in patents contra-indicated for colonoscopy and 15.1% of patients who refused colonoscopy.
8:49 am First Potomac Realty prices upsized offering of 6.5 mln shares of beneficial interest at $14.70 per share (FPO) : The offering was upsized from an original amount of 6 mln shares to the final offering size of 6.5 mln shares.
8:48 am Diana Containerships misses by $1.04, beats on revs (DCIX) : Reports Q1 (Mar) loss of $0.99 per share, excluding non-recurring items, $1.04 worse than the Capital IQ Consensus Estimate of $0.05; revenues rose 20.8% year/year to $15.1 mln vs the $14.86 mln consensus. Co recorded a non-cash impairment loss of $32.6 mln during the quarter for the vessels Maersk Madrid, Maersk Malacca and Maersk Merlion. Co states adj EPS would have been $0.03.
Briefing Notes: Separately, the co also announced it entered into a loan agreement with Diana Shipping (DSX), for up to $50 mln to fund vessel acquisitions and for general corporate purposes. See 8:31.
8:44 am TJX reports EPS in-line; guides Q2 EPS in-line; raises low end of FY14 EPS guidance (below consensus) (TJX) : Reports Q1 (Apr) earnings of $0.62 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.62; revenues rose 6.8% year/year to $6.19 bln (in-line with May 9 preannouncement) vs the $6.16 bln consensus; comps +2%.
Co issues in-line guidance for Q2, sees EPS of $0.61-0.63 vs. $0.63 Capital IQ Consensus Estimate.
Co issues guidance for FY14, raises EPS to $2.70-2.78 from $2.66-2.78 vs. $2.81 Capital IQ Consensus Estimate.
"We are very pleased with our first quarter results, especially as they were achieved over the highest year-over-year comparisons for quarterly comp sales and EPS growth of this year. Consolidated comparable store sales increased 2% over an 8% reported increase last year and earnings per share grew 13% over last year's adjusted 41% increase. We believe the flexibility of our business model allowed us to achieve this growth despite the unfavorable weather patterns across most of our regions for much of the quarter. Flowing the right merchandise at the right time continued to be key to strong merchandise margins. The second quarter is off to a strong start and we are in an excellent position to buy into the enormous opportunities for quality merchandise that we are seeing in the marketplace. Longer term, we remain very confident in our continued ability to grow sales and profitability as we are well on the road to being a $40 billion-plus company!"
8:42 am FBR & Co commences self tender offer to purchase up to 1.25 million shares at a price of not less than $22.50 and not more than $23.50/share (FBRC) : Co announced the commencement of a modified "Dutch auction" tender offer to purchase up to 1.25 million shares, or about 10.6%, of its outstanding common stock, at a price of not less than $22.50 and not more than $23.50 per share. The tender offer will expire at 12:00 midnight, New York City time, on June 18, 2013, unless extended.
8:42 am Yingli Green Energy jumps to new premarket highs following guidance, now up 22% (YGE) :
8:41 am TCP Capital prices public offering of 4.5 mln shares of its common stock at $15.63 per share (TCPC) :
8:41 am J. C. Penney announces successful early tender offer and consent solicitation results for 7 1/8% debentures due 2023 (JCP) : Co announced early results of JCP's previously announced cash tender offer for its outstanding 7 1/8% Debentures Due 2023 and related solicitation for consents to previously described amendments to the indenture, as amended and supplemented, governing the Notes that would eliminate most of the restrictive covenants and certain events of default and other provisions in the Indenture, upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement. As of 5:00 p.m., New York City time, $242,782,000 in aggregate principal amount of the Notes, representing 95.41% of the outstanding principal amount of the Notes had been validly tendered and not validly withdrawn in the tender offer. The withdrawal time expired at 5:00 p.m., New York City time, on May 13, 2013.
As a result, JCP has obtained consents to the Proposed Amendments from holders representing at least 66 2/3% in aggregate principal amount of the outstanding Notes. Having received the requisite consents from the holders, the Company and Wilmington Trust, National Association, the successor trustee for the Notes, executed a supplemental indenture effecting the Proposed Amendments. The Supplemental Indenture became effective upon execution, but the Proposed Amendments will not become operative until JCP purchases in the tender offer not less than 66 2/3% in outstanding principal amount of the Notes. Subject to the completion of the tender offer, holders who validly tendered (and did not validly withdraw) their Notes and thereby delivered consents prior to the Consent Expiration shall receive a total consideration equal to $1,450 per $1,000 principal amount of the Notes; which includes a consent payment of $50 for each $1,000 principal amount of Notes, plus accrued and unpaid interest to, but not including, the applicable payment date for the Notes.
Goldman, Sachs & Co. is acting as dealer manager and solicitation agent for the tender offer and consent solicitation.
8:40 am Yingli Green Energy expects Q1 PV module shipmentto decrease by 6-7% q/q, better than previous guidance of low-to-mid teen percent decrease (YGE) : Co expects its overall gross margin in the first quarter of 2013 to be in the range of 4.0% to 4.2%, which is in line with its previous guidance of low-to-mid single digit percent.
8:39 am Red Robin Gourmet reports EPS in-line, revs in-line (RRGB) : Reports Q1 (Mar) earnings of $0.66 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.66; revenues rose 2.3% year/year to $306.3 mln vs the $306.89 mln consensus.
- Comparable restaurant revenues increased 2.2% for Company-owned restaurants in the first quarter of 2013 compared to the prior year.
- guest counts decreased 0.6% on a comparable basis
- average guest check increased 2.8%.
- The higher margins resulted primarily from lower food and beverage costs and other operating costs as a percentage of sales, partially offset by higher labor expenses and occupancy costs.
- Co's 2013 fiscal year consists of 52 weeks ending on December 29, 2013, compared to fiscal 2012, which consisted of 53 weeks.
- In 2013, the Co expects comparable restaurant sales growth of 2.5%-3.0% compared to 2012 based on a combination of increases in prices, items sold per guest and increased guest visits.
- The Co is increasing its projected capital investments to ~$70 mln.
- The Co plans to open 20 new company-owned Red Robin restaurants in addition to several Red Robin's Burger Works restaurants and intends to remodel 20 existing Red Robin restaurants as part of its brand transformation initiative.
- Restaurant-level operating profit margins in 2013 are expected to be near 20.9%.
8:32 am Xinyuan Real Estate announces upcoming retirement of CFO (XIN) : Co announced that Tom Gurnee, the Company's Chief Financial Officer for the past four and a half years, plans to retire as CFO in August 2013. Mr. Gurnee will remain on the Company's Board of Directors following his retirement as CFO.
The co has formed a search committee, which includes members of the Board's audit committee, to lead the effort to locate Mr. Gurnee's successor. The co plans to have a new CFO in place prior to Mr. Gurnee's retirement in order to provide an orderly transition.
8:32 am AMAG Pharma: Ferumoxytol treatment produced significant hemoglobin increases in adult iron deficiency anemia patients with gastrointestinal disease who had failed or could not tolerate oral iron therapy (AMAG) : Co announced that a new sub-group analysis from IDA-301, a phase III, randomized, placebo-controlled clinical trial, will be presented today at a poster session of the Digestive Disease Week 2013 meeting in Orlando, Florida. In the full IDA-301 study, 608 adult patients with iron deficiency anemia (IDA) who had failed or could not tolerate oral iron were treated with ferumoxytol and 200 received placebo. The sub-group analysis being presented today at DDW is based on 231 patients in IDA-301 with gastrointestinal disease. Of these patients, 173 were randomized to the ferumoxytol treatment arm and 58 to the placebo arm.
The primary efficacy endpoint of this study for the FDA is the proportion of subjects who achieved a > 2.0 g/dL increase in hemoglobin at any time from baseline to week 5; the primary efficacy endpoint for European Union (EU) regulators is the mean change in hemoglobin from baseline to week 5. In the GI sub-group analysis, 82.1% of ferumoxytol-treated patients achieved an increase of > 2.0 g/dL in hemoglobin compared to 1.7% of patients who received placebo at week 5, meeting the protocol defined measure of superiority (p
8:32 am IEC announces NYSE MKT delisting notice (IEC) : Co announced it received a notice on May 20, 2013 from the NYSE MKT (the "Exchange") that the Co's failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 29, 2013 with the SEC does not satisfy a condition for the Co's continued listing on the Exchange and also is a material violation of its listing agreement with the Exchange. Therefore, the Exchange is authorized to suspend and remove the Co's securities from the Exchange unless prompt corrective action is taken, including submission of a plan by June 3, 2013 addressing how it intends to regain compliance with the listing standards by August 15, 2013.
The Co intends to submit such a plan within the time established by the Exchange. If the Exchange accepts the plan, the Exchange may permit the Co to continue its listing during the plan implementation period, subject to periodic review of its progress. If the plan is not timely submitted or is not accepted by the Exchange, the Co will be subject to delisting proceedings. If the plan is accepted and the Co is not in compliance by August 15, 2013, or the Co does not make consistent progress in implementing the plan, the Exchange will initiate delisting proceedings as appropriate.
8:32 am Accuray new data validates CyberKnife SBRT for prostate cancer treatment (ARAY) : Co announced the publication of study results involving hundreds of prostate cancer patients treated with the CyberKnife Robotic Radiosurgery System, the most widely used form of prostate stereotactic body radiation therapy. The study followed 304 patients for a median of 5 years, and many to 6 years post-treatment and found that 97 percent of patients with low-risk and 90.7% of patients with intermediate-risk prostate cancer remained cancer-free throughout that time. The CyberKnife treatment was also shown to be minimally harmful, producing low levels of toxicity that are similar to the level produced by other radiation treatment options including brachytherapy. Preservation of sexual function was achieved for 75% of patients who were sexually potent prior to CyberKnife treatment.
8:31 am Diana Containerships: Diana Shipping (DSX) agrees to loan up to $50 mln to Diana Containerships (DCIX) : Under the terms of the loan agreement, one or more wholly-owned subsidiaries of Diana Containerships may borrow amounts under the loan to fund vessel acquisitions and for general corporate purposes. The loan matures on the fourth anniversary of the initial draw down date, and amounts drawn under the loan will bear interest at the rate of LIBOR plus 5.0% per annum. In addition, the borrower will pay the Company a variable back-end fee in an amount of up to 5.0%, in the aggregate, of the total amount outstanding under the loan. Separately, Diana Shipping Inc. also announced that on May 17, 2013, it signed, through separate wholly-owned subsidiaries, two shipbuilding contracts with China Shipbuilding Trading Company, Limited and Jiangnan Shipyard (Group) Co., Ltd., for the construction of two Newcastlemax dry bulk carriers of ~208,500 dwt each for a contract price of US$48.7 million per vessel. Co expects to take delivery of the vessels during the second quarter of 2016.
8:31 am Cimatron priced an offering by selling shareholders for an aggregate of ~2.183 mln ordinary shares at $6.25/share (CIMT) : Co announced that certain of its shareholders have priced an underwritten public offering for an aggregate of ~2.183 mln of its ordinary shares at a price to the public of $6.25/share.
8:31 am CytRx announces initial results from pharmacokinetics clinical trial with aldoxorubicin in solid tumors; Aldoxorubicin shows prolonged clinical activity in two clinical trial patients with small cell lung cancer who have failed other therapies (CYTR) : Letter stated "In April 2013 we announced that we reached agreement with the U.S. Food and Drug Administration (:FDA) to conduct our first Phase 3 trial with aldoxorubicin under a special protocol assessment (SPA). We expect to report data from three clinical trials with aldoxorubicin this year, as follows: Aldoxorubicin and Doxorubicin Comparator Clinical Trial: Highly anticipated progression-free survival data from our international Phase 2b clinical trial directly comparing aldoxorubicin and doxorubicin as a first-line treatment for advanced soft tissue sarcoma are expected in the second half of this year. Aldoxorubicin and Doxorubicin Combination Trial: We expect in the second half of this year to report data from a single-center Phase 1b clinical trial in 24 patients with advanced solid tumors who have failed other therapies. Doxorubicin in this trial is being administered at 50% of its maximum tolerated dose in combination with escalating doses of aldoxorubicin to determine the maximum tolerated dose of the drug combination and evaluate preliminary efficacy in this patient population. Pharmacokinetics of Aldoxorubicin: Data from our open-label, single-center Phase 1b clinical trial in patients with metastatic solid tumors are expected to be reported in the second quarter of this year. These trial results are expected to form an important component of aldoxorubicin's development for future regulatory submissions, as well as play a role in partnership discussions."
8:30 am Scientific Games signed an instant ticket and cooperative services contract with Loteria Electronica Internacional Dominicana (SGMS) : Under the terms of the new contract, Scientific Games will supply instant lottery tickets and related cooperative services, including game design, a back office instant ticket system, marketing, training and support for inventory management and distribution. The seven-year contract, which begins in May 2013, includes an option for LEIDSA to extend the contract for an additional three years. Revenue to Scientific Games will be based on a price-per-thousand tickets basis along with a percentage of instant ticket retail sales for providing cooperative services.
8:26 am EMCORE awarded solar panel manufacturing contract by ATK (ATK) for NASA's Green Propellant Infusion Mission (EMKR) : Co announced that it has been awarded a contract by ATK (NYSE:ATK) to design and manufacture solar panels for NASA's Green Propellant Infusion Mission (:GPIM) planned for launch in 2015. Solar panels populated with EMCORE's most advanced ZTJ triple-junction solar cells will power a satellite that will carry the GPIM payload. ATK will integrate EMCORE's solar panels into its heritage-designed solar arrays for final flight configuration for the GPIM satellite.
The GPIM project will demonstrate the practical capabilities of AF-M315E, a high-performance green alternative to hydrazine that has traditionally been used to fuel many spacecraft. This innovative, low-toxicity propellant is expected to improve overall vehicle performance. It boasts a higher density than hydrazine, meaning that more can be stored in containers of the same volume, and it delivers a greater thrust per given quantity of fuel.
8:25 am Plains Exploration declares special $3.00 per share dividend (PXP) : Co announces it declared a special one-time cash dividend of $3.00 per share, payable to PXP stockholders as of May 30, 2013, the dividend record date. The dividend is conditioned upon and will be paid immediately prior to or upon the completion of PXP's merger with Freeport-McMoRan Copper & Gold (FCX). The merger is expected to close on May 31, 2013, subject to the satisfaction of all conditions to closing.
8:24 am Cinemark USA announces launch of $530 mln of senior notes offering (CNK) : Co announced that through its wholly-owned subsidiary, Cinemark USA, the Co intends to commence a private offering (the "Offering") that is exempt from the registration requirements of the Securities Act of 1933, as amended to eligible purchasers of $530 million aggregate principal amount of Senior Notes due 2023 (the "2023 Notes").
The 2023 Notes will be guaranteed by certain of the Co's subsidiaries that guarantee or become liable with respect to any of the Co's and the guarantors' other debt. The Co intends to use the net proceeds from the sale of the 2023 Notes, together with cash on hand, to finance a redemption of the 8.625% Senior Notes due 2019.
8:23 am On The Wires (:WIRES) :
- Ebix (EBIX) announced that the co's A.D.A.M. multimedia health content will be included on Bing, Microsoft's (MSFT) search engine.
- Jack Henry & Associates' (JKHY) Symitar division announced that $1.3 bln Indiana Members Credit Union has selected Episys for in-house core processing.
- GFI Group (GFIG) announced it will deploy Flash Memory Arrays from Violin Memory to increase the speed and capacity of its trading platforms across all assets classes.
- Cancer Genetics (CGIX) has entered into an agreement with MultiPlan. CGI will be able to offer providers with its proprietary tests and testing services in hematological and urogenital cancers.
- Qualys (QLYS) and Proficio announced a partnership to provide the QualysGuard suite of IT security and compliance solutions along with Proficio's managed services.
- Virtual Piggy (VPIG) has signed partnership agreements with Toy Galaxy and Toadstool companies in the UK to integrate the Virtual Piggy solution into both companies' ecommerce operations.
- ServiceNow (NOW) announced that Tommy Bahama has implemented ServiceNow software-as-a-service to consolidate multiple IT systems into a single system of record, provide self-service interaction for users and enhance the overall IT service experience.
- Atmel (ATML) announced that Secret Labs' recently launched 'AGENT' smart watch is powered by Atmel's SAM4S and tinyAVR microcontrollers.
- Altera (ALTR) announced its 28 nm Stratix V GX FPGAs have achieved inclusion on the latest PCI-SIG Integrators List for the PCI Express 3.0 specification.
8:21 am Gapping down (:SCANX) : In reaction to disappointing earnings/guidance: HGG -9.7%, CCL -7.1%, URBN -2.8%, BBY -1.8%, DKS -1.4%.
Financial related names showing weakness: RBS -4.6%, ING -3.9%, BCS -2.2%, CS -1.9%, SAN -1.8%, UBS -1.8%, DB -1.4% (downgraded to Neutral from Overweight at JPMorgan, downgraded to Underperform from Neutral at Macquarie), HBC -1.4%.
Select metals stocks trading lower: GFI -4.8%, RGLD -3.8%, NEM -3.3%, SLV -3.1%, SLW -2.5%, EGO -1.8%, GG -1.8%, GDX -1.5%.
Other news: KOS -8.6% (announces results from Sipo-1 exploration well; oil and gas shows evidenced during drilling indicated a working petroleum system; however, the well failed to encounter commercial reservoirs), CUK -8.4% and RCL -2.4% (following CCL guidance), TCPC -4% (commenced a public offering of 4.0 million shares of its common stock), CIMT -3.2% (announces proposed secondary public offering of ordinary shares; no amount given), LG -2.7% (plans to commence a registered underwritten public offering of up to 8,700,000 shares of its common stock), WAIR -2.3% (announced the commencement of a public offering of 15,000,000 shares of common stock by affiliates of The Carlyle Group), FPO -2.2% (commenced an underwritten public offering of 6,000,000 common shares of beneficial interest), OAK -1.8% (announced a public offering of 6,000,000 Class A unit), IRWD -0.9% (announced that it has commenced an underwritten public offering of 10,500,000 shares of its Class A common stock), AAPL -0.9% (Senator Levin says they plan to highlight the AAPL tax gimmick and other AAPL offshore tax avoidance tactics, so Americans understand why those tax loopholes need to be closed ), NPSP -0.8% (announces proposed public offering of 6 mln shares of common stock).
8:16 am Tasman Metals granted Mining Lease for Norra Karr heavy REE project (TAS) : Co announces it has been granted its Mining Lease for the Norra Karr heavy rare earth element project in Sweden. The Mining Lease gives the co the full mineral rights for the Norra Karr project for an initial period of 25 years, which is then automatically renewed in 10 year increments if the mine is in operation. The lease was granted by the Swedish Mining Inspectorate after extensive stakeholder consultation. As is standard practice for the grant of new mining leases, stakeholders have a five week window within which to appeal.
8:15 am Hologic receives FDA approval for a new low-dose 3d Mammography solution for breast cancer screening (HOLX) : Co announced that the FDA approved the use of Hologic's new C-View 2D imaging software. C-View 2D images may now be used in place of the conventional 2D exposure previously required as part of a Hologic 3D mammography screening exam.
8:15 am Regeneron Pharms and Sanofi and announce publication of positive Phase 2a results of dupilumab in asthma in the New England Journal of Medicine (REGN) : Sanofi (SNY) and Regeneron Pharmaceuticals announced that the New England Journal of Medicine published online the positive Phase 2a study results of dupilumab (SAR231893/REGN668) in patients with moderate-to-severe allergic asthma. Dupilumab is an investigational monoclonal antibody targeting the alpha subunit of the interleukin 4 receptor (IL-4R alpha), which modulates signaling of both IL-4 and IL-13, drivers of Th2 (Type 2 helper T cell) immune response. The study results will also be presented today at a late-breaking clinical trials session at the American Thoracic Society 2013 International Conference.
The proof-of-concept study enrolled 104 patients with moderate-to-severe, persistent asthma that was not well controlled with inhaled glucocorticosteroids (ICS) and long-acting beta agonist (:LABA) therapy, and who had elevated blood or sputum eosinophils (immune cells used as a marker of Th2 asthma in this study).
8:14 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: NM +6%, MDT +4.2%, HD +3.6%, SKS +2.2%, TIVO +1.1%.
M&A related: SDBT +52.2% (Genesys to Acquire co for $5.00 per share), S +1.4% (light volume, Softbank is planning on JPY 400 bln bond sale related to Sprint (S) bid, according to reports out yesterday; also Sprint Nextel provides transaction update; receives waiver from SoftBank; Sprint's Board will proceed with providing non-public information to DISH and engage in negotiations), FCX +1.2% (Freeport-McMoRan Copper & Gold Inc. and Plains Exploration & Production Company confirmed yesterday afternoon that the PXP shareholders approve acquisition).
Select solar related names showing continued strength: RSOL +8.2%, ASTI +7.7%, JASO +4.6%, JKS +3.8%, CSIQ +3.5%, LDK +3.3%, SOL +2.4%, TSL +1.5%, SPWR +1.3%, FSLR +1.3%, WFR +0.7%, .
A few miners are trading modestly higher: RIO +2.3%, BHP +1.1%, BBL +1%, VALE +0.3%, .
A few coal related names showing strength: WLT +1.9%, ANR +1.3%, ACI +1.0%.
LED names are seeing early strength: AIXG +5.3%, LEDS +3.4%, CREE +0.5%
Other news: ACRX +23.8% (Top-line data demonstrate primary endpoint achieved in final pivotal phase 3 study of Sufentanil NanoTab PCA system for management of post-operative pain), MCP +3.4% (WSJ report that China rare earth exports grew 28% YoY in April), ERJ +3.4% (Embraer and SkyWest Inc. Sign a Contract for 40 firm E-Jets), REN +2.2% ( Sageview Capital discloses 6.3% active stake in 13D filing), REGN +1.8% (entered into agreements with Genentech (RHHBY) and Sanofi (SNY) for Eylea and Zaltrap), YHOO +1% (to offer free terabyte of storage for photos on Flickr; co consolidating NY offices), CBST +0.4% ( CBST receives favorable patent court ruling versus Hospira, according to reports, upgraded at Cantor).
Analyst comments: BA +1.1% (light volume, Hearing tgt to $100 from $75 at UBS), TROW +0.6% (upgraded to Outperform from Mkt Perform at Bernstein), UIL +0.6% (upgraded to Outperform at Robert W. Baird)
8:12 am Ladenburg Thalmann Financial prices public offering of 4.6 mln shares of its 8.00% Series A Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, for gross proceeds of $115 mln (LTS) : The offering was upsized from the previously disclosed offering size of 2 mln shares.
8:11 am Acorda Therapeutics announces publication of new data on impact of mobility impairment due to multiple sclerosis (ACOR) : Co announced new research findings that show a loss of mobility due to multiple sclerosis (MS) has a negative impact on work productivity and patient-reported perceptions of health. The paper, published in PLoS ONE, estimated that the total costs of this lost productivity, often referred to as indirect costs, exceed $30,000 per person with MS, per year. Lost productivity due to mobility complications from MS was high, with an average work reduction of nine hours a week, and eight days every six months. Utility scores were on average 0.14 below a demographically similar population without MS; changes of 0.03 - 0.05 are considered meaningful.
8:10 am Given Imaging announces data confirming PillCam SB improves monitoring and management of Crohn's disease (GIVN) : Co announced new studies that confirm the value of PillCam SB in diagnosing, monitoring and managing patients with known or suspected Crohn's disease and other conditions of the small bowel. The studies were presented at Digestive Disease Week, taking place May 18-21, 2013, at the Orange County Convention Center, Orlando, FL, where Given Imaging is exhibiting at booth #1059 throughout the conference. Several DDW poster presentations underscore the clinical utility of using PillCam SB in patients with Crohn's disease and PillCam SB's positive impact in improving disease management including: Wireless Capsule Endoscopy Improves Outcomes in Nonstricturing Crohn's Disease: An Evaluation of Pre- and Post- Treatment Capsule Endoscopy, poster Sa1634. An additional study, 8-Hour CE Versus 12-Hour CE in a Cohort of Hospitalized Patients Undergoing CE for Suspected Small Bowel Disorders, poster Tu1301, presented by Rafiul S. Islam, M.D., Mayo Clinic, Scottsdale, AZ, and colleagues, compared the diagnostic yield and completion rates of 8-hour capsule endoscopy and 12-hour CE in a cohort of hospitalized patients.
8:09 am Saks reports EPS in-line, beats on revs; details outlook for the balance of 2013 (SKS) : Reports Q1 (Apr) earnings of $0.19 per share, excluding items, in-line with the Capital IQ Consensus Estimate consensus of $0.19; revenues rose 5.3% year/year to $793.2 mln vs the $777.37 mln consensus. Co reports Q1 comparable store sales of +5.9% vs 3% estimate.
- SKS sees FY14 comparable store sales of 4-6% for remainder of year (FY14 estimate is +4.1% estimate and prior guidance was for full year +3-5%).
- Co sees FY14 comparable store inventory levels of +4-5% for rest of year (prior guidance was +3-5% for FY14).
- Based upon current inventory levels and composition and the Company's promotional calendar and permanent markdown cadence, co expects its y/y gross margin rate to be relatively flat for the balance of the year (prior guidance for 2013 +20-40 bps above 40.6% in 2012).
- Co has increased its anticipated 2013 SG&A expenses above original expectations, primarily due to two factors. First, the Company expects to incur ~$5 million to $6 million of additional expenses related to Project Evolution. Second, the Company has accelerated the planned launch of OFF5TH.com into fall 2013 (from 2014 previously) and will incur ~$5 -6 million of start-up and incremental operating expenses associated with this project.
8:08 am Abbott Labs announces CE Mark for world's longest coronary drug eluting stent (ABT) : Co announced CE Mark in Europe for the XIENCE Xpedition 48 Everolimus Eluting Coronary Stent System, the first-of-its-kind treatment for very long blockages in the vessels that supply blood to the heart due to coronary artery disease. XIENCE Xpedition 48 leverages the proven design and clinical outcomes of the XIENCE family of drug eluting stents in a unique 48 mm length.
XIENCE Xpedition 48 is supported by strong clinical evidence from the XIENCE family of drug eluting stents, including data from more than 53,000 patients across more than 100 studies with long-term outcomes out to five years. The safety of the XIENCE family of drug eluting stents has been consistently demonstrated in a number of clinical trials representative of routine clinical practice. The XIENCE family has one of the broadest ranges of CE Mark indications for drug eluting stents on the market in Europe, including indications to treat patients with complex disease such as diabetes.
8:05 am American Water Works announces 14.1% dividend increase and 2-for-1 stock split (AWR) : Co approved a 14.1% increase in its third quarter cash dividend from $0.355 per share to $0.405 per share on the common shares of the Company. This increase is equivalent to $0.20 per share above its current annualized dividend rate of $1.42 to $1.62. For 59 consecutive years, American States Water Company shareholders have received an increase in their aggregate annual dividend.
8:03 am Navios Maritime beats by $0.11, beats on revs (NM) : Reports Q1 (Mar) GAAP loss of $0.10 per share, $0.12 better than the Capital IQ Consensus Estimate of GAAP ($0.22); revenues fell 12.0% year/year to $133.8 mln vs the $97.1 mln consensus.
Revenue from drybulk vessel operations for the three months ended March 31, 2013 was $60.6 mln as compared to $101.9 mln for the same period during 2012. The decrease in drybulk revenue was mainly attributable to a decrease in the time charter equivalent rate ("TCE") per day by 45.0% to $11,820 per day in Q1 of 2013 following the receipt in advance of $175.4 mln due to restructuring of credit default insurance, as compared to $21,496 per day in the same period of 2012.
This decrease was partially offset by (i) an increase in available days for owned vessels by 6.1% to 2,677 days in the first quarter of 2013 from 2,524 days in the same period of 2012 and (ii) an increase in the long-term and short-term charter-in fleet available days of 58 days and 12 days, respectively.
8:01 am ChemoCentryx announces Phase I Data with CCX507, co's new generation orally administered CCR9 Inhibitor; CCX507 reduces colitis in inflammatory bowel disease models (CCXI) : Co announced data showing that CCX507, a next generation orally available inhibitor of the chemokine receptor known as CCR9, exhibited excellent pharmacokinetics and was well tolerated in a Phase I trial in healthy subjects. Preclinical data were also presented, showing that CCX507 markedly inhibited the recruitment of T cells to the intestine and significantly reduced colitis and colitis-associated wasting in inflammatory bowel disease models. The data, which were presented in a poster presentation at the Digestive Disease Week 2013 conference in Orlando, further strengthen the rationale for the use of a CCR9 antagonist in inflammatory bowel disease (:IBD).
8:01 am Asia Entertainment announces non-binding Memorandum of Understanding to acquire VIP Gaming Room at Le Royal Arc Casino (AERL) : Co announces that it has entered into a non-binding memorandum of understanding, whereby it will acquire all of the outstanding interests and operations of the VIP gaming room at Level 1 of Le Royal Arc Casino located in NAPE, Downtown Macau.
The purchase price to be paid by AERL to the Seller shall be equal to $20 mln in cash, $10 mln of which will be paid upon the closing of the acquisition and the remaining US$10 mln to be paid upon the renewal or extension of the existing collaborator agreements to promote the VIP gaming room through at least December 31, 2014.
Additionally, if the Seller and his network of agents achieve a Rolling Chip Turnover of at least $2.5 bln in each of the twelve-month periods ending June 30, 2014, 2015 and 2016, the Seller would receive three additional purchase consideration installments of $13 mln and 625,000 ordinary shares of AERL. The Seller can receive additional incentives for exceeding these targets. Until June 30, 2016, the Seller shall provide a personal guarantee for any bad loans associated with the Seller's operations prior to the closing of the acquisition.
Following this transaction, AERL will be able to expand its existing agents network. Upon the closing of the acquisition, AERL will have 40 tables in five VIP rooms.
7:59 am Asian Markets Close: Nikkei +0.1%, Hang Seng -0.5%, Shanghai +0.2% (:SUMRX) : Markets across Asia were mixed with the Nikkei (+0.1%) eking out a gain following comments from Economy Minister Akira Amari, who backtracked from yesterday's statement. Mr. Amari suggested, "I have previously said that the overly strong yen is in the process of being corrected. I will not say it has been corrected, or where it will finish." Elsewhere, Australia's ASX (-0.6%) pulled back after the latest Reserve Bank of Australia minutes showed the central bank cut rates to a record low 2.75% in an effort to relieve the pressure on businesses hurt by the strong Aussie dollar. Data out overnight showed Hong Kong's inflation rate jump to 4.0% YoY (3.6% YoY expected, 3.6% YoY previous) and Malaysia's unemployment rate climb to 3.3% (3.0% previous). Looking at the currencies...USDCNY fell to 6.1353; USDINR rallied to 55.40; USDJPY is stronger at 102.80; AUDUSD is weaker near .9780. In Japan, the Nikkei closed +0.1% to end at its best level since December 2007. Transportation stocks were strong as Japan Airlines rallied 1.7% and Isuzu Motors climbed 0.9%. Meanwhile, real estate shares were weak with Mitsui Fudosan and Sumitomo Realty & Development both giving up at least 3.0%.
In Hong Kong, the Hang Seng finished -0.5% as financials lagged following Goldman Sachs' exit from ICBC. Goldman sold the remainder of its stake in the co, dropping shares 2.1%. The actions weighed on peers China Construction Bank and Bank of China, which both lost close to 1.5%...In China, the Shanghai Composite settled +0.2% as shares ended higher for a fifth straight session. Technology names were strong with GoerTek surging the limit, 10%, after reporting a 66% jump in Q1 earnings. Elsewhere, telecom names were under pressure as ZTE gave up 1.9% following a tier 1 rate cut.
In India, the Sensex closed -0.6% as trade slipped to a one-week low. Blue chips were mixed as ITC shed 1.1% and Infosys gained 1.1%. Meanwhile, automakers saw profit-taking with Tata Motors and Maruti Suzuki giving up 3.0% and 2.6% respectively. Click here to see a daily Sensex chart.
In Australia, the ASX finished -0.6% as shares continue to hover near five-year highs. All of the 'big four' banks saw losses with ANZ giving up 2.0% to pace the decline. Mining service firms were under significant pressure following profit warnings, with Transfield Services plunging 23.9%.
In Taiwan, the Taiex settled +0.1% as Foxconn Technology added 1.4%...In South Korea, the Kospi settled -0.1% as LG shed 1.3%.
In other regional markets...Indonesia -0.5%...Singapore -0.3%...Thailand UNCH...Malaysia +0.6%...Philippines +0.7%...Vietnam +1.6%
7:58 am Tidewater beats by $0.34, beats on revs (TDW) : Reports Q4 (Mar) earnings of $0.95 per share, $0.34 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 13.4% year/year to $328.3 mln vs the $317.89 mln consensus.
7:57 am FX Energy reports successful production test at Tuchola-3K well; well flowed gas at rates ranging from 3.8 to 5.5 mln cubic feet of gas per day with no water during a production test (FXEN) : Co reported that the Tuchola-3K well flowed gas at rates ranging from 3.8 to 5.5 million cubic feet of gas per day with no water during a production test. The Company plans to collect the final data from the downhole pressure gauges and finish completing the well for production. "The Tuchola-3K test raises the real possibility of opening a significant new exploration play for us in Poland. We intend to follow up the successful test with 3-D seismic acquisition covering approximately 100 square kilometers and drill one or two more wells this year in the Edge concession area in north-central Poland where the Tuchola-3K is located. The additional seismic and drilling will help us to determine the potential of this area and specifically the reserves in the structure where the Tuchola-3K well is being completed for production."
7:52 am On The Wires (:WIRES) :
- Pioneer Energy Services (PES) began testing trucks powered by compressed natural gas with the delivery of its first vehicle. The bi-fuel truck is a 2013 Chevrolet 2500HD 4X4 Extended Cab able to run on both gasoline and low-cost CNG.
- Novatel Wireless (NVTL) announced that Mesh Systems has selected Novatel Wireless for its newly certified CDMA2000 1X embedded M2M module.
- PAR Technology (PAR) announced that BAE Systems (BAESY) has awarded PAR's subsidiary, Rome Research, a subcontract for the Operation and Maintenance of Multiple Communications Facilities Operating Under Naval Computer and Telecommunications Area Master Station Pacific Program. The total value of the contract is $9.5 mln, with a performance period of 25 months.
- TeleCommunication Systems (TSYS) announced that its TCS VoLTE9-1-1 service is first into production with Tier-1 wireless carriers, including two of the largest N. American operators. Co also received JF-12 certification from the U.S. Army Spectrum Management Office for its Tactical Transportable TROPO system.
- Hastings Entertainment (HAST) announced they are now offering eBay's (EBAY) PayPal as a payment method on its e-commerce website.
- Level 3 Communications (LVLT) is providing content delivery network, high-speed IP and colocation services for Metaboli, a European distributor of Internet-based video games.
7:51 am Echo Therapeutics announces Institutional Review Board approval for its clinical trial of the Symphony CGM System (ECTE) : Co announced that its clinical trial of its Symphony CGM System has received Institutional Review Board (:IRB) approval. The IRB approval enables the commencement of a clinical evaluation of Symphony that will support the Company's CE Mark Technical File.
7:48 am IAMGOLD provides exploration update on Boto Project in Senegal; Drill-hole DBDD-2126: 42 metres grading 2.16 g/t gold (IAG) : Co announced additional drilling results from its 100% owned Boto Gold Project in eastern Senegal, West Africa. The co is reporting assay results from 29 diamond drill holes totaling 7,325 metres completed between Nov 2012 and Apr 2013. Boto 2 prospect: Drill-hole DBDD-2126: 42 metres grading 2.16 g/t gold; Drill-hole DBDD-2131: 34 metres grading 2.20 g/t gold. Boto 4 prospect: Drill-hole DBDD-2135: 22 metres grading 1.95 g/t gold; Drill-hole DBDD-2137: 18 metres grading 2.70 g/t gold; Drill-hole DBDD-2138: 29 metres grading 2.08 g/t gold. The Company's 2013 drilling program will continue until the onset of the annual rainy season which generally persists in the region from July to October.
7:47 am Copper futures just spiked higher, hitting a new HoD (:COMDX) : Copper just spiked here while other commodities such as crude oil, gold and silver remained relatively quiet. July copper is now +0.5% at $3.38/lb.
7:42 am Intelsat to issue $2.635 bln in guaranteed and unguaranteed notes (I) : Co announced that its subsidiary, Intelsat Jackson Holdings S.A., intends to offer $2,000,000,000 aggregate principal amount of senior notes due 2023 (the "2023 notes"). Intelsat Jackson's obligations under the notes will be guaranteed by certain of its parent and subsidiary companies. In addition, Intelsat Jackson intends to offer $635,000,000 aggregate principal amount of its 65/8% Senior Notes due 2022 (the "2022 notes" and together with the 2023 notes, the "notes").
The 2022 notes will be issued under the same indenture as Intelsat Jackson's existing 65/8% Senior Notes due 2022. Intelsat Jackson's obligations under the 2022 notes will be guaranteed by certain of its parent companies. The 2022 notes will not be guaranteed by Intelsat Jackson's subsidiaries.
7:37 am Dick's Sporting Goods reports EPS in-line, misses on revs; guides Q2 EPS in-line; reaffirms FY14 guidance (DKS) : Reports Q1 (Apr) earnings of $0.48 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.48; revenues rose 4.1% year/year to $1.33 bln vs the $1.37 bln consensus. Adjusted for the shifted calendar due to the 53rd week in 2012, consolidated same store sales decreased 3.8%, compared to guidance of an ~1 to 2% decrease. Q1 consolidated same store sales increased 8.4%. Shifted same store sales in Q1 for DICK'S Sporting Goods decreased 3.2% and Golf Galaxy sales decreased 11.8%. Unshifted consolidated same store sales decreased 1.7%, compared to our guidance of ~flat to a 1% increase, consisting of a 1.3% decrease at DICK'S Sporting Goods and a 7.4% decrease at Golf Galaxy. eCommerce penetration was 5.8% of total sales.
Co issues in-line guidance for Q2, sees EPS of $0.75-0.77 vs. $0.76 Capital IQ Consensus Estimate; adj. comps +2-3%.
Co reaffirms guidance for FY14, sees EPS of $2.84-2.86, excluding non-recurring items, vs. $2.85 Capital IQ Consensus; with comps +2-3% (52 week basis).
In Q1, the co repurchased 1.7 million shares of its common stock at an average cost of $47.41 per share, for a total cost of $80.6 million. The co financed the repurchased shares from cash on hand.
"In the first quarter, we generated earnings in line with our original guidance, but were not pleased with our sales results, which came in below our expectations. To drive sales and preserve margins in the near-term, we will work with our vendor partners, particularly in golf, to provide value offerings; we will aggressively execute our store remodel program, with ~75% of the identified stores expected to be completed by the end of the second quarter; and we will continue to tightly manage clearance inventory, which has declined meaningfully."
7:32 am Flotek Industries announces updates regarding their facilities in Marlow, Moore and Chickasha, Oklahoma; none of co's facilities were damaged during the storms yesterday afternoon (FTK) : Co announced updates regarding their facilities in Marlow, Moore and Chickasha, Oklahoma. Flotek reports that none of their facilities were damaged during the tragic storms yesterday afternoon. Specifically, Flotek's Chemical & Logistics CESI Chemical headquarters in Marlow, Oklahoma; Teledrift headquarters in Moore, Oklahoma; and Spidle Turbeco drilling products and tools facility in Chickasha, Oklahoma were not damaged during the storms yesterday and all employees are accounted for and safe.
7:31 am Mylan Labs: Federal appellate court rules in favor of Mylan in patent infringement litigation relating to Sunovion's brovana product (MYL) : Co announced that the Court of Appeals for the Federal Circuit has ruled in favor of Mylan Specialty L.P., f/k/a Dey Pharma, L.P. and has reversed the District Court's decision invalidating five of Mylan's patents related to Perforomist. The Court's reversal of the summary judgment decision reinstates Mylan Specialty's patents as valid and enforceable. Mylan previously announced a settlement agreement with Sunovion resolving the litigation relating to Sunovion's Brovana product, pending the outcome of the Federal Circuit appeal.
7:31 am Medical Action announces new $65 mln credit facility (MDCI) : Co announced that it has entered into a new five year credit agreement for $65 mln with Wells Fargo, N.A., part of Wells Fargo (WFC), effective May 17, 2013. The new credit facility refinances and replaces the previous agreement which had been scheduled to expire in June 2014 and which had ~ $54.6 mln outstanding as of May 17, 2013. The new agreement includes a revolving line of credit, a term loan A and, upon election, a term loan B as well as the ability to increase the size of the loan in certain circumstances, such as acquisitions. This new financing provides improved pricing, tenor and operating flexibility, and positions the Company to further execute on its strategic plans. Under the new credit agreement, applicable interest rates are determined based upon average excess availability and, at the Company's election, either a prime rate or LIBOR-based rate. Based on current estimates, these lower interest rates should translate into an after-tax savings of ~ $0.5 mln over prior year, or ~ $0.03 per share.
In conjunction with the closing of the transaction, the co will record a one-time non-cash after-tax charge of ~ $0.4 mln, or $0.02 per share, in the quarter ended June 30, 2013 (first quarter of fiscal year 2014). This one-time charge is related to the accelerated amortization of the deferred financing fees associated with the previous credit agreement.
7:31 am Laredo Petroleum announces $438 mln sale of Anadarko basin assets to affiliates of EnerVest (LPI) : Co announced that it has signed an agreement with various affiliates of EnerVest, Ltd. ("EnerVest") to sell all of Laredo's interests in properties and assets in the Anadarko Basin. Under the agreement, which has an effective date of April 1, 2013, EnerVest will acquire ~104,000 net acres of leasehold held by Laredo in the Anadarko Basin of Western Oklahoma and the Texas Panhandle and associated infrastructure. At closing, EnerVest will pay $438 mln in cash to Laredo, before normal closing adjustments. The transaction is expected to close during the third quarter of 2013, subject to customary closing conditions.
During Q1 of 2013, Laredo's production from the Anadarko Basin was ~4.9 bln cubic feet of liquids-rich natural gas and ~49.6 thousand barrels of crude oil and condensate. As of Dec 31, 2012, Laredo's reported estimated proved reserves included ~162 bln cubic feet of natural gas and ~1.5 mln barrels of crude oil and condensate associated with the assets being sold.
7:31 am AcelRx: Top-line data demonstrate primary endpoint achieved in final pivotal phase 3 study of Sufentanil NanoTab PCA system for management of post-operative pain (ACRX) : Co announced top-line data demonstrating that in a placebo-controlled Phase 3 study of its investigational sublingual Sufentanil NanoTab PCA, the primary efficacy endpoint was achieved.
- The study evaluated control of pain intensity compared to baseline during the 48-hour study period immediately following major orthopedic surgery, specifically knee or hip replacement, using the FDA-requested primary endpoint of Summed Pain Intensity Difference to baseline.
- Results demonstrated that patients receiving sufentanil NanoTabs realized a significantly greater SPID-48 during the study period than placebo-treated patients (+76.1 vs -11.5, p
- Secondary endpoint data showed that SPID at 24 hours and 72 hours was also significantly greater in the sufentanil-treated patients than in the placebo-treated patients
- Adverse events reported in the study were generally mild or moderate in nature and were similar in both placebo and treatment groups for the majority of adverse events.
Primary Endpoint Data
- Two hundred fifteen (68.3%) sufentanil NanoTab-treated patients completed the 48-hour study period, compared to 43 (41.3%) placebo-treated patients. Primary reasons for drop-out in the sufentanil- and placebo-treated groups were adverse events (7.0% and 6.7%, respectively) and lack of efficacy (14.3% and 48.1%, respectively). The primary endpoint measure, SPID-48, was +76.1 for sufentanil-treated patients and -11.5 for placebo-treated patients.
- Treatment-emergent adverse events were generally mild to moderate in nature and similar for the majority of adverse events between sufentanil and placebo treated patients, despite the shorter duration of exposure in the placebo-treated patients caused by early termination due to inadequate analgesia.
7:31 am POZEN: Presence of gastric erosions in patients taking low-dose aspirin for secondary cardiovascular prevention may result in a 2-fold increase in future gastric ulcers (POZN) : Co presents data from a post-hoc analysis of Phase 3 data from the investigational compound PA32540. The analysis of patients screened for the Phase 3 studies demonstrated that at any time point, over 4% of subjects on low dose aspirin for cardiovascular and cerebrovascular disease have endoscopic gastric ulcers that go undetected. In addition, the analysis demonstrated that even the presence of small lesions known as endoscopic gastric erosions in aspirin-users was associated with a 2-fold increased risk of future development of endoscopic gastric ulcers.
Key Findings of Post-Hoc Analysis
- The baseline rate of gastric ulcers in the screening of the general population of adults using ASA (325 mg) for =3 months for secondary cardiovascular prevention was 4.4%, and was 5.7% for both gastric or duodenal ulcers.
- In the post-hoc analysis of subjects with and without gastric erosion at baseline endoscopy, the presence of gastric erosion at baseline was:
- Predictive of a higher rate of subsequent gastric erosions for both EC-ASA (325 mg) and PA32540.
- Associated with a significant propensity toward future gastric ulcer development in subjects treated with EC-ASA (325 mg), but not in those treated with PA32540.
- In patients with baseline gastric erosions, a significantly higher percentage of patients taking EC-ASA (325 mg) developed a gastric ulcer over the six month study period than patients taking PA32540 (13% vs. 4.2%).
7:30 am Monro Muffler reports EPS in-line, beats on revs; guides Q1 EPS below consensus; guides FY14 EPS, rev towards low end of expectations (MNRO) : Reports Q4 (Mar) earnings of $0.25 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.25; revenues rose 14.1% year/year to $195.9 mln vs the $190.43 mln consensus. The total sales increase for Q4 of $24.2 million was due to an increase in sales from new stores, including recently acquired stores, of $43.5 million. Adjusted for days, comparable store sales decreased 5.6%, slightly better than the Company's previously estimated range of -9% to -6% and compared to a comparable store sales increase of .7% for the same period last year. On a reported basis, comparable store sales decreased 11.4%. Comparable store sales, adjusted for days, were flat for maintenance services, and decreased ~6% for tires, alignments and exhaust, 7% for front end/shocks and 11% for brakes. Gross margin decreased to 36.0% in the fourth quarter from 38.7% in the prior year quarter due to a sales mix shift to the lower margin tire category, related primarily to acquired stores and a loss of leverage due to weaker year-over-year comparable store sales, including one less week in the fourth quarter of fiscal 2013 as compared to the same period of the prior year.
Co issues downside guidance for Q1, sees EPS of $0.42-0.46 vs. $0.48 Capital IQ Consensus; comps +3-4%.
Co issues guidance for FY14, sees EPS of $1.65-1.80 vs. $1.78 Capital IQ Consensus Estimate; sees FY14 revs of $840-865 mln vs. $864.57 mln Capital IQ Consensus Estimate.
"Our fourth quarter performance reflects the continued impact of the challenging economic environment that has been weighing on our customers. Given the environment, our customers continued to defer purchases and trade down from higher cost automotive maintenance and repair purchases. Additionally weather conditions remained less than ideal for our business, which impacted our comparable store sales results, particularly in January. Notably, however, with the return to more normalized weather after January, we saw an improvement in comparable store sales trends, and trends to-date in the first quarter of 2014 have shown further improvement into positive territory."
7:23 am Medtronic beats by $0.07, beats on revs; guides FY14 EPS in-line (MDT) : Reports Q4 (Apr) earnings of $1.10 per share, $0.07 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 3.8% year/year to $4.46 bln vs the $4.38 bln consensus. Q4 international rev of $2.087 billion increased 7% on a constant currency basis or 4% as reported. International sales accounted for 47% of Medtronic's worldwide revenue in the quarter. Fourth quarter emerging market revenue of $521 million increased 14% on a constant currency basis or 13% as reported and represented 12% of Company revenue. The Cardiac and Vascular Group includes the Cardiac Rhythm Disease Management (:CRDM), Coronary, Structural Heart, and Endovascular businesses. The Group had worldwide sales in the quarter of $2.342 billion, representing an increase of 5 percent on a constant currency basis or 4% as reported. Growth was broad based, with all of the Group's businesses making significant contributions. Group international sales of $1.344 billion increased 7% on a constant currency basis or 4% as reported.
Co issues in-line guidance for FY14, sees EPS of $3.80-3.85, excluding non-recurring items, vs. $3.84 Capital IQ Consensus; with FX adj. sales growth of 3-4% (+2.3% consensus, as reported).
"Medtronic has a number of strengths that uniquely position us to succeed and become the premier global medical technology solutions partner, creating value for healthcare systems around the world."
7:23 am Sterling Slides as Pricing Pressures Cool: 10-yr: +02/32..1.953%..USD/JPY: 102.77..EUR/USD: 1.2847 (:SUMRX) : The Dollar Index has seen steady buying over the course of the morning, and now holds on session highs near 84.00. Traders will be watching the 84.40 level curiously, as a close above there would mark the best in almost three years.
- EURUSD is -20 pips at 1.2860 after an early bid failed near 1.2900 following the tamer than anticipated German PPI (-0.2% MoM actual v. -0.1% MoM expected). The 1.2800 area remains important near-term support.
- GBPUSD is -100 pips at 1.5155 as trade breaks down to a one and a half-month low. The selling comes after British CPI (2.4% YoY actual v. 2.6% YoY expected), PPI Input (-2.3% MoM actual v. -1.2% MoM expected), and RPI (2.9% YoY actual v. 3.1% YoY expected) all saw cooler than expected readings. The data has many thinking the Bank of England will look to expand its asset purchase program as pricing pressures have cooled. Click here to see a daily GBPUSD chart.
- USDCHF is +25 pips at .9690 as trade lingers near a nine-month high. Action has seen a 50 pip range during today's session after early weakness was able to hold near-term support in the .9650 area.
- USDJPY is +45 pips at 102.70 after Economy Minister Akira Amari backtracked from yesterday's comments as he stated, "I have previously said that the overly strong yen is in the process of being corrected. I will not say it has been corrected, or where it will finish." The pair managed to hold 102.00 support, and continues to hover near four and a half-year highs ahead of tonight's Bank of Japan policy decision.
- AUDUSD is -30 pips at .9775 as trade gives back roughly half of yesterday's gains following the release of the latest Reserve Bank of Australia minutes. The minutes suggested the central bank cut rates at this month's meeting in an effort to alleviate the pressure on businesses that were suffocating from the strong Aussie dollar. USDCNY fell to 6.1353.
- USDCAD is +35 pips at 1.0275 as action continues to test the key 1.0300 area. Bank of Canada Governor Mark Carney will speak later today at the Board of Trade in Montreal.
7:15 am Genesis Energy, L.P. announces expansion of existing Gulf Coast rail facility and construction of a new unit train rail facility in Wyoming (GEL) : Co announced it will expand its existing rail terminal in Natchez, Mississippi designed to handle straight and/or minimally diluted bitumen delivered by the Canadian National Railway and construct a new unit train loading facility in the heart of the Powder River Basin of the Niobrara Shale Play (Pronghorn Rail Facility). At the Natchez terminal, Genesis is finalizing Phase I of the facility which includes 40 railcar spots to be completed in June 2013. Due to significant demand for the flexible capacity at the facility, Genesis is moving forward with a Phase II expansion to provide an additional 60 railcar spots and additional heated tanks to be fully operational in late 2013.
Co is finalizing the commercial agreements with a number of third-party customers that substantially underpin its investments at these two locations. The total cost to Genesis of the Natchez Phase II and Pronghorn Rail Facility projects is expected to be approximately $75 million. Genesis intends to finance the projects with funds available under its committed revolving credit facility.
7:15 am On The Wires (:WIRES) :
- Covidien (COV) announced that its superDimension Electromagnetic Navigation Bronchoscopy system is included in the new American College of Chest Physicians guidelines to aid in diagnosing and managing lung cancer.
- Evolving Systems (EVOL) announced that a Latin American customer plans to use its Dynamic SIM Allocation Solution to support a strategic Mobile Virtual Network Operator initiative.
- Microsemi (MSCC) announced shipment of production-qualified SmartFusion2 system-on-chip field programmable gate arrays. The co also announced the availability of its full-featured SmartFusion2 development kit with support for mainstream industry interfaces.
- Xilinx (XLNX) announced that Xilinx and Sumitomo Electric Industries are collaborating to bring smarter solutions to market. These solutions reduce CapEx and OpEx costs through the use of Sumitomo Electric's Gallium Nitride power amplifier transistors and Xilinx SmartCORE IP that result in higher radio unit efficiencies.
- Genpact (G) announced a five-year contract extension with Genworth Financial (GNW) to continue providing comprehensive business process management services. Genpact has a 14-year relationship with Genworth and supports Genworth's three primary divisions: Insurance and Wealth Management, Mortgage Insurance and Corporate and Runoff.
7:05 am AutoZone beats by $0.06, reports revs in-line; Q3 same store sales decreased 0.1% (AZO) : Reports Q3 (May) earnings of $7.27 per share, $0.06 better than the Capital IQ Consensus Estimate of $7.21; revenues rose 4.4% year/year to $2.21 bln vs the $2.22 bln consensus.
Domestic same store sales, or sales for stores open at least one year, decreased 0.1% for the quarter. The Company's inventory increased 6.3% over the same period last year, driven by an increase in store count and continued strategic investments in hard parts assortment. For the quarter, gross profit, as a percentage of sales, was 51.8%. The increase in gross margin was primarily driven by lower acquisition costs, partially offset by the inclusion of AutoAnything.
"We are pleased to report our twenty-seventh consecutive quarter of double digit earnings per share growth. Our organization executed our game plan and delivered another quarter of solid performance. While sales results for the quarter finished below our expectations, we were pleased to see noticeable improvements in our performance during the final four weeks of the quarter, specifically in our more recently challenged Northeastern and Midwestern markets."
7:02 am United Online announces High Court of England and wales ruled in favor of united online subsidiaries interflora and interflora british unit (UNTD) : Co announced that the High Court of England and Wales issued its judgment in favor of United Online's FTD subsidiaries, Interflora, Inc. and Interflora British Unit, in their long-running lawsuit against Marks and Spencer. In December 2008, Interflora and Interflora British Unit initiated proceedings against Marks and Spencer in an attempt to stop Marks and Spencer from bidding on the "Interflora" trademark on Google (GOOG). In today's ruling, the trial judge concluded that Marks and Spencer's use of the "Interflora" trademark as a Google AdWord to advertise the Marks and Spencer's Flowers & Gifts website constituted trademark infringement.
7:02 am Prospect Capital reports sale of Wolf Energy assets; receipt of net profits interest cash distribution for a combined gross $66 mln, boosting co's net asset value by over $0.06 per share and reducing prospect's non-accrual rate to 0.2% (PSEC) : Co announced that Prospect's portfolio co Wolf Energy Holdings has sold its oil and gas assets located in Martin County, Texas, and Prospect has received a net profits interest cash distribution and other payments, for a combined gross $66 mln. Prospect estimates the recent cash flows received from Wolf in the current quarter have increased net asset value for Prospect by more than $0.06 per share. If these Wolf cash flows had been received on March 31, 2013, the fair market value of Prospect's loan assets on non-accrual as a percentage of total assets would have stood at approximately 0.2% on such date, down from the previously reported 1.3%.
7:01 am Grifols, S.A. and Aradigm sign of worldwide licensing agreement to develop and commercialize Pulmaquin (GRFS) : Grifols and Aradigm announce the signing of an exclusive, worldwide license for Aradigm's proprietary formulations of inhaled ciprofloxacin (Pulmaquin and Lipoquin) for the treatment of severe respiratory diseases, including non-cystic fibrosis bronchiectasis. Aradigm has completed Phase 2b clinical trials in BE patients with Pulmaquin and Lipoquin. Aradigm has been granted orphan drug designation for BE in the U.S. and there is currently no drug specifically approved for the treatment of this condition.
Under the terms of the transaction:
- The parties have agreed to advance Aradigm's proprietary inhaled ciprofloxacin formulations into Phase III clinical trials in BE.
- Grifols will be responsible for all development and clinical expenses up to a maximum of $65 mln for the BE indication.
- Aradigm is entitled to receive cash payments of up to $25 mln upon achievement of development milestones.
- Grifols is responsible for all commercialization activities and will pay Aradigm tiered royalties on worldwide sales of products utilizing Aradigm's proprietary inhaled ciprofloxacin formulations.
- Grifols will be granted an option to license Aradigm's AERx pulmonary drug delivery platform for use with another molecule.
- In conjunction with the licensing agreement, Grifols will (upon receipt of Aradigm shareholders' approval) acquire 35% of Aradigm's common stock on a fully diluted basis at a price per share of $0.124 for a total investment of ~$26 mln.
- Existing Aradigm shareholders, including Tavistock Life Sciences Company and accounts managed by First Eagle Investment Management and new investors Great Point Partners will co-invest in the stock purchase transaction and purchase an additional approximately $15.4 mln in Aradigm common stock.
6:46 am SkyWest announces agreement with Embraer (ERJ) for 100 firm and 100 options E175 regional jets (SKYW) : Co announced that it has entered into an agreement with Embraer (ERJ) for the purchase of 100 new E175 dual-class regional jet aircraft. Of the 100 aircraft, 40 are considered firm deliveries and the remaining 60 aircraft are considered conditional until SkyWest enters into capacity purchase agreements with other major airlines to operate the aircraft. Deliveries for the 40 firm aircraft are anticipated to begin in the second quarter of 2014 and continue through mid 2015. The aircraft will be configured in 76 seats in dual-class. The agreement also includes options for an additional 100 E175 aircraft and would be valued at $8.3 billion if all 200 aircraft are ordered. The initial 40 firm aircraft outlined above will be operated by SkyWest Airlines, a subsidiary of SkyWest, under a new agreement with United Airlines (UAL).
6:46 am United Continental: United Airlines to add 40 more Embraer (ERJ) 76-seat aircraft to United Express fleet (UAL) : United Airlines announced a capacity purchase agreement for SkyWest Airlines, a subsidiary of SkyWest (SKYW), to operate 40 Embraer (ERJ) 175 aircraft under the United Express brand. SkyWest will purchase the 40 76-seat aircraft with deliveries in 2014 and 2015. These aircraft are in addition to 30 Embraer 175 aircraft that United previously announced it will purchase and which will be operated by a United Express carrier, also scheduled for delivery between 2014 and 2015.
6:41 am Chambers Street Properties to list its common shares on the NYSE; announces commencement of tender offer to purchase up to $125 mln of its common shares (CSG) : Co announced that it is authorized to list its Common Shares of Beneficial Interest on the New York Stock Exchange. Trading is expected to commence on May 21, 2013 under the ticker symbol "CSG."
In addition, co announced that it has commenced a modified "Dutch Auction" Tender Offer to purchase up to $125 mln in value of its Common Shares of Beneficial Ownership from its shareholders. The co intends to select the lowest price, not greater than $10.60 per share nor less than $10.10 per Common Share, net to the tendering shareholder in cash, less any applicable withholding taxes and without interest, which would allow Chambers Street to purchase up to the full $125 mln in value of its Common Shares, or a lower amount depending upon the number of Common Shares properly tendered and not withdrawn. Shareholders may tender all or a portion of their Common Shares, but if the Offer is oversubscribed, Common Shares will be accepted on a prorated basis. The co will use borrowings under its existing unsecured revolving credit facility to purchase Common Shares in the Offer and to pay for all related fees and expenses.
6:40 am S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -1.50. :
6:40 am European Markets : FTSE...6764.76...+9.40...+0.10%. DAX...8433.39...-22.30...-0.30%.
6:40 am Asian Markets : Nikkei...15381.02...+20.20...+0.10%. Hang Seng...23366.37...-126.70...-0.50%.
6:15 am On The Wires (:WIRES) :
- Hershey (HSY) announced it is launching a new candy brand in China called "Lancaster." The new products will initially launch in three cities - Wuhan, Hangzhou and Chengdu - in June, followed by a wider distribution in 2014.
- Top Image Systems (TISA) announced that OPSI, Authorized Service Contractor for UPS in Israel selected eFLOW to automate the invoice and related transport documentation processing.
- Honeywell (HON) has been selected by Pilatus Aircraft to supply the avionics suite for the newly announced Pilatus PC-24 Twin Jet.
- Ascent Solar Technologies (ASTI) announced the launch of the co's retail presence in Colorado.
- L & L Energy (LLEN) has selected top tier Taiwan underwriter, Taishin Securities, to underwrite L&L's Taiwan Depository Receipt listing.
- Elbit Imaging (EMITF) has received a notice from Bank Leumi le-Israel B.M., which the co vigorously reject, stating that the Bank plans to exercise its rights to withdraw the securities deposited by the co in its securities accounts with the Bank as security for the co's obligations to the Bank, and sell such securities to partially offset the co's outstanding obligations to the Bank in the ~ amount of $12.9 mln.
- Attunity (ATTU) announced that Equifax (EFX) has adopted Attunity's high-performance data replication solution, Attunity Replicate.
6:13 am Home Depot beats by $0.07, beats on revs; raises FY14 EPS below consensus, raises FY14 revs above consensus; Q1 comps +4.3%; raises FY14 comp guidance (HD) : Reports Q1 (Apr) earnings of $0.83 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.76; revenues rose 7.4% year/year to $19.12 bln vs the $18.61 bln consensus.
Co issues guidance for FY14, raises EPS of $3.52 from prior guidance of $3.37 vs. $3.56 Capital IQ Consensus Estimate; raises FY14 revs to ~2.8% sales growth calc to ~$76.85 bln from prior guidance of +2% calc to ~$76.25 bln vs. $76.71 bln Capital IQ Consensus Estimate.
Due to the 14th week in the fourth quarter of fiscal 2012, first quarter sales benefited from a seasonal timing change that added approximately $574 mln to sales. On a like for like basis, comparable store sales for the first quarter of fiscal 2013 were positive 4.3 percent, and comp sales for U.S. stores were positive 4.8 percent.
"In the first quarter, we saw less favorable weather compared to last year, but we continue to see benefit from a recovering housing market that drove a stronger-than-expected start to the year for our business,"
FY14 Guidance: Based on its year-to-date performance and outlook for the balance of the year, the Company raised its fiscal 2013 sales guidance and now expects sales to be up approximately 2.8 percent with comparable store sales up ~4.0 percent for the year (prior guiadnce called for +3% comps). The Company's earnings-per-share guidance includes the benefit of its year-to-date share repurchases and intent to repurchase $4.4 bln in additional shares over the remainder of the year, which will bring the total dollar amount of shares repurchased to $6.5 bln for the year.
6:09 am Bristow Group increases quarterly dividend by 25% to $0.25 per share from $0.20 per share (BRS) :
6:03 am Donegal Group: Shepard extends tender offer for Donegal Group Class B shares until July 31, 2013 (DGICA) : Gregory Mark Shepard announced that he has extended the expiration date for his tender offer for 962,636 shares of Class B Common Stock of Donegal Group at a price of $30 per share until July 31, 2013. Based on information received from the Depositary for the Offer, as of 5:00 p.m., New York City time, on May 20, 2013, approximately 381,216 shares of Class B common stock had been tendered and not withdrawn from the Offer, plus an additional 2,324 shares had been submitted by guaranteed delivery.
6:01 am Stellus Capital postpones 2013 annual meeting of stockholders to June 27, 2013 (SCM) : Co postponed the annual meeting in order to allow stockholders additional time to vote their shares to obtain quorum.
6:00 am Synergy Resources increases proved reserves by 40% in its mid-year update (SYRG) : Co announced that its third party reserve engineer, Ryder Scott, has evaluated the company's mid-year reserves for the period ending February 28th, 2013 and reported a PV10 value of $208 million on proved reserves of 13.63 million barrels of oil equivalent (BOE) versus a PV10 value of $148 million and 10.66 million BOE for the period ending August 31st, 2012. The largest increase in the reserves was in the Proved Developed Producing category which rose 60%. There was an increase in Proved Developed Not Producing reserves of 33% and an increase in Proved Undeveloped reserves of 9%.
5:16 am Boston Scientific: OrbusNeich seizes Boston Scientific stents in Germany as part of patent infringement proceedings (BSX) : Medical device manufacturer OrbusNeich Medical Inc. and its subsidiary, OrbusNeich Medical GmbH announced that it has enforced the seizure of over 190 stent systems from Boston Scientific Corporation (NYSE: BSX) in connection with its patent infringement proceedings in the Dusseldorf Regional Court. The products were found on May 15, 2013, at the premises of Boston Scientific Medizintechnik GmbH in Ratingen, the German subsidiary of Boston Scientific.
In violation of the Court's April 30, 2013 Preliminary Injunction, Boston Scientific initially denied access to search its premises -- the court's decision grants OrbusNeich the right to seize stents in the possession of Boston Scientific that have been commercially distributed but not yet used. Boston Scientific claimed that none of the concerned stent systems were in its possession at the location in Ratingen. Only after the Police were called did Boston Scientific allow the bailiff to search the building and seize the products.
5:12 am On The Wires (:WIRES) :
- Virtusa poration (VRTU) announced that its UK subsidiary, Virtusa UK Limited, has delivered an automated case management solution for Irwin Mitchell, a leading British law firm.
- CTC Media (CTCM) has entered into a trading plan under Rule 10b5-1 of the U.S. Securities Exchange Act in respect of its previously announced open market stock repurchase program. The Board of Directors of CTC Media approved the repurchase program in March 2013
- GigaMedia (GIGM) announced that its GigaCloud business has been selected by the New Taipei City government to help build-out a new government cloud services platform and drive the adoption of cloud services by local small-to-medium-enterprises; a strategic milestone in GigaCloud's expansion into regional government sectors.
- NXP Semiconductors (NXPI) announced the availability of its ultra-wideband Doherty reference design using the BLF884P and BLF884PS -- the industry's first wideband Doherty power amplifiers capable of broadband operation
- Edwards Group (EVAC) announced it will be supplying 35 new XDS dry scroll pumps to CERN, the European Organization for Nuclear Research, based on the Franco-Swiss border near Geneva.
2:19 am On The Wires (:WIRES) :
- Omega Protein (OME), christened two new vessels at its Reedville, Virginia facility. The two vessels, named the F/V Rappahannock and the F/V Fleeton are state of the art menhaden fishing vessels and are the first new vessels christened by the company in over 20 years.
- Samson Oil & Gas (SSN) advised on the North Stockyard operations (Samson operated North Tier). The Sail and Anchor 3-13-14 HBK (Horizontal Bakken) well completed drilling the 8-3/4" intermediate hole, set and cemented 7" casing at 11,675 feet measured depth at 86 degrees in the upper Middle Bakken.
- Equinix (EQIX) announced that NYSE Technologies, the commercial technology unit of NYSE Euronext (NYX), has extended its global trading network into Equinix's International Business Exchange data centers in Hong Kong and Tokyo.
- SanDisk (SNDK) announced it has begun customer sampling of flash memory products based on its industry-leading 1Ynm process technology, which represents its second generation 19 nanometer manufacturing technology.
- France Telecom-Orange (FTE) unit Orange Business Services announced the expansion of Flexible Computing, an Infrastructure as a Service offer. With 500 customers already operating from its European platform, Flexible Computing is now available from cloud-ready data centers in North America and Asia.
- HGST, formerly Hitachi Global Storage Technologies and now a Western Digital company (WDC) continues to push technology innovation by offering the highest storage density of any hard disk drive.
- Amazon Web Services, an Amazon.com company (AMZN), announced AWS GovCloud and all U.S. AWS Regions have received an Agency Authority to Operate from the U.S. Department of Health and Human Services under the Federal Risk and Authorization Management Program requirements at the Moderate impact level.
- Toshiba (TOSBF) announced that the company has developed second generation 19 nanometer process technology that it will apply to mass production of 2-bit-per-cell 64 gigabit NAND memory chips later this month.
- Alvarion (ALVR) announced that TigoBusiness Nicaragua has chosen the company's carrier-grade Wi-Fi solution as its platform for Wi-Fi networks.
1:39 am B&G Foods prices $700.0 mln of 4.625% senior notes due 2021 (BGS) :
1:37 am Maui Land & Pineapple Co back in NYSE compliance with its $50 mln market cap for 30 days rule (MLP) :
1:27 am iGATE terminates the employment of President and CEO Phaneesh Murthy; Board appoints Gerhard Watzinger interim President and CEO (IGTE) : Co announces its Board has decided to terminate the employment of President and CEO Phaneesh Murthy. Concurrently, the Board has appointed Gerhard Watzinger as President and CEO on an interim basis. All changes are effective immediately.
The Board's decision was made as a result of an investigation by outside legal counsel, engaged by the Board, of the facts and circumstances surrounding a relationship Mr. Murthy had with a subordinate employee and a claim of sexual harassment. The investigation, which is ongoing, has reached the finding that Mr. Murthy's failure to report this relationship violated iGATE's policy, as well as Mr. Murthy's employment contract. The investigation has not uncovered any violation of iGATE's harassment policy. Gerhard Watzinger previously served as an executive at iGATE from 1998 to 2003 in a number of roles, including CEO of the iGATE Solutions business. A Search Committee within the Board of Directors has been created, which will oversee the process for the identification and selection of a new President and CEO.
1:23 am Sprint Nextel provides transaction update; receives waiver from SoftBank (SFTBF); Sprint's Board will proceed with providing non-public information to DISH and engage in negotiations (S) : Sprint Nextel announces that it has received from SoftBank (SFTBF) a waiver of various provisions of the merger agreement between Sprint and SoftBank. The waiver will permit Sprint and its representatives to furnish non-public information concerning Sprint to DISH Network (DISH) and to engage with DISH in discussions and negotiations regarding its proposal made on April 15, 2013. Prior to furnishing non-public information to DISH, Sprint will enter into a confidentiality agreement with DISH containing customary limitations on the use and disclosure of all non-public written and oral information furnished to DISH by or on behalf of Sprint.
Pursuant to the existing merger agreement with SoftBank, subject to certain requirements, the Sprint Board of Directors has the right to terminate the existing merger agreement in order to accept a Superior Offer (as defined in the merger agreement). The Sprint Board of Directors has not determined that the DISH proposal in fact constitutes a Superior Offer under the existing merger agreement, and there can be no assurance that the DISH proposal will ultimately lead to a Superior Offer. The Sprint Board of Directors has not changed its recommendation with respect to, and continues to support, the company's pending transaction with SoftBank.
1:16 am Given Imaging reports new European study evaluating PillCam COLON versus CT-Colonography in patients with incomplete colonoscopy (GIVN) : Co announces data from several European studies confirming the effectiveness of PillCam COLON in detecting colonic lesions in patients following incomplete colonoscopies and monitoring diverse digestive diseases in both adults and children.
After undergoing traditional colonoscopies that were unable to be completed for various reasons, 100 patients had PillCam COLON and CTC exams to determine how well doctors using each method were able to visualize areas of the colon that couldn't be seen with the incomplete colonoscopy. PillCam COLON and CTC enabled physicians to see additional areas beyond colonoscopy in 98% of the patients. The results of this study suggested that both PillCam COLON and CTC are effective in patients with incomplete colonoscopies, however, PillCam COLON tends to detect more polyps than CTC in segments of the colon that were not visualized by incomplete colonoscopies.
1:14 am Bonanza Creek Energy increases its credit facility by $80 mln to $660 mln (BCEI) : Co announces that the borrowing base under its bank credit facility has been increased to $330 mln pursuant to the completion of its semi-annual redetermination. This represents an $80 mln increase over the company's previous borrowing base of $250 mln which had been reduced as a result of our recent issuance of senior unsecured notes completed on April 9, 2013.
1:10 am H.B. Fuller agrees to acquire Plexbond Quimica; financial terms not disclosed (FUL) : Co announces that it has signed an agreement to purchase adhesives company Plexbond Quimica, a provider of chemical polyurethane specialties and polyester resins. This business generated nearly $20 mln in revenue for the 2012 fiscal year and operates a manufacturing facility in Curitiba, Brazil.
1:07 am Wausau Paper sells its specialty paper business to KPS Capital Partners newly created co Expera Specialty Solutions (WPP) : KPS Capital Partners announces that, through a newly formed company, Expera Specialty Solutions, and its affiliates, it has entered into definitive agreements with Wausau Paper to acquire Wausau's specialty paper business and with Packaging Dynamics to acquire PDKY's specialty paper business.