|
|
Enron Mail |
_________________________________________________________________
B R E A K F A S T W I T H T H E F O O L Friday, November 3, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=180707 _________________________________________________________________ Sponsored By: MUTUALS.com Get a FREE portfolio analysis and recommendation. Plus, buy or consolidate over 10,600 mutual funds, only at MUTUALS.com. Get your free portfolio checkup now. http://www.lnksrv.com/m.asp?i=180708 "Keep away from those who try to belittle your ambitions. Small people always do that, but the really great make you believe that you too can become great." --Mark Twain PRICELINE THINS ITS RANKS The Internet discount company announced a third-quarter loss, the resignation of its CFO, and a restructuring plan. By Mike Trigg Embattled name-your-price Internet discount company priceline.com (Nasdaq: PCLN) announced a third-quarter loss after the market's close yesterday that met lowered Street expectations. In addition, the company announced the resignation of CFO Heidi Miller and a restructuring plan that includes cutting 16% of its workforce. Priceline posted a fiscal third-quarter (ended September 30) net loss of $2 million, or $0.01 per share, compared to a lose of $11.9 million, or $0.08 per share, a year ago. Revenue came in at $341 million, slightly below expectations. Moreover, the company forecasts a sequential revenue decline for the fourth quarter, continuing to see signs of weak demand. President and CEO Daniel Schulman blamed the revenue shortfall on negative publicity and problems with its airline ticket business. Priceline continues to be dogged by consumer complaints, highlighted by the revelation that popular company spokesman William Shatner has never used the services himself. In the airline business, the company has experienced adverse effects from rising fuel prices and airlines' own discounts. Looking to perform some damage control, the company also announced a number of restructuring moves. Priceline announced it would fire 87 of its 535 employees, forcing it to take a charge for an undisclosed amount that will hurt fourth-quarter results. Also, the company will take a $9 million non-cash charge due to a change in a warrant held by Delta Air Lines (NYSE: DAL). The company finished the quarter with $131 million in cash and short-term investments, not all that bad depending on the burn rate, although no guidance has been given. Nevertheless, the debate still wages on with this company regarding the survivability of is business model. With 80% of its revenues derived from airline ticket sales, it comes as no surprise that even the slightest misstep can cause damage. Of course, shutting different business lines down, such as Priceline WebHouse Club, only makes matters worse and leads many to question whether this notion of diversification is fact or fiction. At this point, we can only wait and see. _________________________________________________________________ NEWS TO GO Mobile phone equipment company Qualcomm (Nasdaq: QCOM) reported better-than-expected fiscal fourth-quarter results after the market's close yesterday. However, revenues fell short of expectations because of slow demand in its largest market, South Korea. The San Diego-based company reported net income of $200.8 million, or $0.25 per share, compared to $182.9 million, or $0.24 per share, in the same period last year. That beat the Street consensus estimate by a penny. Revenues fell to $635 million from the year-ago figure of $716 million, a decrease of 11%. The revenue shortfall was caused by the South Korean government, which banned mobile phone discounts, cutting demand. Chairman and CEO Irwin Jacobs reiterated that CDMA-based wireless data and Internet access applications would fuel industry growth. Information technology and consulting company Computer Sciences (NYSE: CSC) reported second-quarter earnings that met Street expectations, citing strong U.S. and international sales despite difficult conditions in Australia and Europe. The company reported earnings of $109 million, or $0.64 per share, compared to $93.1 million, or $0.55 per share, a year ago. While suffering from a weak euro, revenue still came in at $2.5 billion, a 12% increase from the year-ago period. Key announcements in the quarter include a $3 billion contract from Nortel Networks (NYSE: NT) During an investors conference in Atlanta, United Parcel Service (NYSE: UPS) discussed the company's current performance and outlook. It noted that it's in-line to meet Street expectations for the fourth quarter, but that there could be a slowdown in the growth rate. For the coming year, company goals include revenue growth of 10%, earnings per share growth in the mid-teens, and a return on equity of about 30%. The world's largest express carrier is also expecting a strong holiday season with peak day deliveries of 19 million or greater. The number three media company, Viacom (NYSE: VIA), announced today it has agreed to acquire privately held BET Holding II, the parent company of Black Entertainment Television. The deal is valued at $3 billion in stock and debt. BET Chairman and majority owner Robert Johnson will remain chairman and CEO of the cable channel geared to African Americans. It joins a Viacom portfolio that includes CBS, MTV, VH1, Nickelodeon, Paramount films, Infinity Broadcasting Corp., and King World Productions. Viacom Chairman and CEO Sumner Redstone noted regarding the purchase that the addition of Robert Johnson, Black Entertainment Television, and other holdings would contribute significantly to the company's existing brands and management expertise. Check out yesterday's Foolish market wrap-up with just one click. HREF="http://www.fool.com/m.asp?i=180709 _________________________________________________________________ EDITORS' PICK Good insurance can save the day. Learn how to get the best rates on the coverage you need. http://www.fool.com/m.asp?i=180710 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=180711 -Fool Community http://www.fool.com/m.asp?i=180712 -Post of the Day http://www.fool.com/m.asp?i=180713 -Latest Fribble http://www.fool.com/m.asp?i=180714 -Latest Market Numbers http://www.fool.com/m.asp?i=180715 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=180716 My Discussion Boards: http://www.fool.com/m.asp?i=180717 My Fool: http://www.fool.com/m.asp?i=180718 Fool.com Home: http://www.fool.com/m.asp?i=180719 My E-Mail Settings: http://www.fool.com/m.asp?i=180720 Sponsored By: MUTUALS.com Get a FREE portfolio analysis and recommendation. Plus, buy or consolidate over 10,600 mutual funds, only at MUTUALS.com. Get your free portfolio checkup now. http://www.lnksrv.com/m.asp?i=180721 ENROLLMENT EXTENDED! Our Roadmap to Retirement seminar makes planning simple. Don't miss out. http://www.fool.com/m.asp?i=180722 TRY THE ALL-CASH DIET Get your spending under control with this report from Soapbox.com. http://www.lnksrv.com/m.asp?i=180723 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=180724 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-2096-2000-11-03_9-39-04-3474496_2_Plain_MessageAddress.msg-09:41:58(11-03- 2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
|