The top pre-market NASDAQ Stock Market gainers are: InterDigital, Express Scripts, Alaska Communications Systems Group,Mellanox Technologies, and BioSante Pharmaceuticals. The top pre-market NASDAQ Stock Market losers are: Travelzoo, Seagate Technology, LM Ericsson Telephone, F5 Networks, and The Cheesecake Factory.
InterDigital, Inc. (IDCC) stock grew 9 percent to $74.85 in the pre-market trading. Google Inc. (GOOG) has held preliminary talks about buying InterDigital to boost its patent portfolio, the Wall Street Journal reported citing people familiar with the matter. There were also reports that Apple Inc. (AAPL) is also considering a bid for InterDigital. InterDigital, which has a market value of $3.11 billion, said it has initiated a process to explore potential strategic options, which may include a sale or other transaction. Interdigital has retained Evercore Partners and Barclays Capital as its financial advisers to assist with the strategic review process.
Express Scripts Inc. (ESRX) stock increased 5.63 percent to $55.50 in the pre-market trading. Profit for the second quarter was $334.2 million or $0.66 per share, up from $289.9 million or $0.53 per share last year. Adjusted earnings from continuing operations rose to $0.71 per share from $0.60 per share. Revenue rose to $11.36 billion from $11.29 billion. Analysts had expected profit of $0.71 per share on revenue of $11.34 billion.
The company announced a definitive merger agreement with Medco Health Solutions. Excluding the effects of this transaction, the company said it remains on track to achieve full year 2011 earnings of $3.15 to $3.25 per share, reflecting growth of 26 percent to 30 percent over last year, while Street predicts $3.20 per share.
Alaska Communications Systems Group Inc. (ALSK) stock gained 5.15 percent to $7.97 in the pre-market trading. The company has added a new set of flexible wireless plans offering customers the ability to build custom fit plans to meet the needs of Alaskans. The new, tiered data plans, combined with updated voice and feature add-ons, give customers choices in talk, text and data, accommodating almost any budget. Additionally, customers have access to the latest Smartphones at a better value with the advantage of Alaska’s smartest wireless network. In addition to customizable plans, Alaska Communications is offering several premium phones – including some of the latest Smartphones such as the Motorola Milestone X, Samsung Showcase Galaxy, HTC Merge and the HTC 7 Pro – along with the best customer service, knowledge, understanding and experience in Alaska. As the Smartphone experts, Alaska Communications knows which devices and plans best meet each individual’s needs. The company offers Smartphone Expert Nights in almost every store to provide education about Smartphone features and functionalities.
Mellanox Technologies, Ltd. (MLNX) stock gained 5.14 percent to $30.50 in the pre-market trading. Adjusted profit for the second quarter was $10.3 million or $0.27 per share, down from $10.4 million or $0.29 per share last year. Revenue grew 58.5 percent to $63.3 million. Analysts had expected profit of $0.21 per share on revenue of $61.87 million.
Reaching the quarter-billion dollar annualized revenue run rate is a significant milestone for Mellanox. We completed the successful integration of Voltaire into Mellanox, and during the quarter we introduced our end-to-end FDR 56Gb/s InfiniBand and 40 Gigabit Ethernet interconnect solutions. We are encouraged by the momentum of design-wins and traction we see in various vertical markets and applications for these solutions, said Eyal Waldman, chairman, president and CEO of Mellanox Technologies.
BioSante Pharmaceuticals, Inc. (BPAX) stock rose 5.04 percent to $3.75 in the pre-market trading. The company announced an exclusive worldwide license of its Melanoma Vaccine to The John P. Hussman Foundation, a charitable foundation that supports research to address life-threatening medical conditions and significant disabilities. BioSante received $100,000 on signing the license and is eligible for up to $39 million in milestone payments, plus royalties on sales. Additionally, the Hussman Foundation has committed up to about $11 million in Melanoma Vaccine clinical development funding. Also, BioSante will receive between 15 and 33 percent of any sub-license payments received by the Hussman Foundation depending on the timing of any sub-license by the Foundation to a corporate sub-licensee. The first Phase I clinical trial of the Melanoma Vaccine is expected to begin within the next several months. The clinical trial protocol is being finalized at this time and Melanoma Vaccine has been produced for the trial.
Travelzoo Inc. (TZOO) stock plunged 21.78 percent to $67.04 in the pre-market trading. Profit for the second quarter was $4.92 million or $0.30 per share, up from $3.25 million or $0.20 per share last year. Revenue rose to $37.56 million from $28.11 million. Analysts had expected profit of $0.38 per share on revenue of $39.85 million.
Seagate Technology PLC (STX) stock fell 12.07 percent to $14.94 in the pre-market trading. Profit for the fourth quarter was $119 million or $0.27 per share, down from $379 million or $0.76 per share last year. Adjusted earnings were $126 million or $0.28 per share. Revenue rose to $2.86 billion from $2.66 billion. Analysts had expected profit of $0.24 per share on revenue of $2.70 billion. The company's board has approved a quarterly cash dividend of $0.18 per share, which will be payable on August 26 to shareholders of record as of the close of business on August 5. In the conference call, Seagate said it expects first quarter adjusted earnings of $0.29 to $0.33 per share and revenue of about $2.9 billion, while Street predicts profit of $0.44 per share on revenue of $2.84 billion.
LM Ericsson Telephone Co. (ERIC) stock tumbled 7.68 percent to $13.10 in the pre-market trading. Profit for the second quarter rose to 3.2 billion Swedish krona from 2.0 billion Swedish krona, due to higher sales volumes and despite a negative impact from increased loss in joint ventures. Earnings per share were 0.96 Swedish krona, higher than 0.58 Swedish krona in the prior-year quarter. Excluding amortizations and write-downs of acquired intangibles, earnings per share rose by 42 percent to 1.21 Swedish krona. Net sales improved 14 percent to 54.8 billion Swedish krona, on a continued strong demand for mobile broadband. Sales for comparable units, adjusted for currency exchange rate effects and hedging, increased 27 percent year-over-year. Previously, Ericsson had estimated restructuring charges of about 2 billion Swedish krona for 2011 and now the company projects restructuring charges of about 3 billion Swedish krona due to the larger scope of the reductions in Sweden.
F5 Networks, Inc. (FFIV) stock slid 6.52 percent to $104.17 in the pre-market trading. Adjusted profit for the third quarter was $79.4 million or $0.97 per share, up from $53.3 million or $0.66 per share last year. Revenue grew 26.1 percent to $290.7 million. Analysts had expected profit of $0.91 per share on revenue of $290.66 million. For the fourth quarter, the company expects adjusted earnings of $0.97 to $0.99 per share and revenue of $307 million to $312 million, while Street predicts profit of $0.98 per share on revenue of $309.68 million.
The Cheesecake Factory Inc. (CAKE) stock declined 4.71 percent to $31.15 in the pre-market trading. Adjusted earnings for the second quarter were $24.7 million or 0.42 per share, up from $23.7 million or $0.39 per share last year. Revenue rose to $430.7 million from $418.9 million. Analysts had expected profit of $0.42 per share on revenue of $434.76 million. Comparable restaurant sales increased 2.1 percent.
In the conference call, Cheesecake Factory said it expects third quarter comparable sales of 1.5 percent to 3 percent and earnings of $0.36 to $0.39 per share, while Street predicts profit of $0.41 per share. The company also anticipates fourth quarter comparable sales of 1.5 percent to 3 percent and earnings of $0.50 to $0.55 per share. For the full year 2011, the company expects comparable sales of 1.5 percent to 2.5 percent and earnings of $1.62 to $1.70 per share, while Street predicts profit of $1.65 per share. In addition, the company said it is increasing its share repurchases target for 2011 to range of $125 million to $150 million from previous forecast of $100 million.