The top pre-market NASDAQ Stock Market gainers are: Magal Security Systems, Seagate Technology, Central European Distribution, Onyx Pharmaceuticals, Randgold Resources, and Research In Motion. The top pre-market NASDAQ Stock Market losers are: Tellabs, ASML Holding, Netflix, and Microsoft.
Magal Security Systems Ltd. (MAGS) stock jumped 22.64 percent to $3.25 in the pre-market trading. Profit for the third quarter was $7.1 million or $0.61 per share, compared to a loss of $799,000 or $0.08 per share last year. Revenue surged 107 percent to $27.7 million.
Seagate Technology PLC (STX) stock grew 9.26 percent to $17.47 in the pre-market trading. The company expects second quarter revenues of about $2.8 billion, while Wall Street predicts $2.64 billion. The company now expects to ship about 43 million units of hard disk drives for the second quarter, matching a previous forecast of 41 million to 45 million units. For the second quarter, it expects gross margin to be 150 to 300 basis points above the high-end of its long-term, targeted gross margin range of 22 percent to 26 percent. The company said its guidance excludes expenses related to the acquisition of Samsung Electronics Co., Ltd's hard disk drive business and any revenue or operating expenses of the acquired business after the closing date, which cannot be estimated at this time. The company still expects to close the acquisition of Samsung's hard disk drive business by the end of December.
Looking ahead to the third quarter, Seagate anticipates revenues of at least $3.75 billion, while Wall Street predicts $3.24 billion and unit shipments to increase sequentially. The company expects third-quarter gross margins to be at least 300 basis points above the targeted range of 22 percent to 26 percent. The third quarter outlook assumes the Samsung acquisition closes in December, excludes certain costs related to the integration of the acquired Samsung hard disk drive operations, which cannot be estimated at this time. Seagate said it continues to believe hard disk drive supply will be significantly constrained for several quarters, as a result of extensive flooding in Thailand. The company said its component and disk drive factories in Thailand have not been directly affected by the flood but its ability to make hard disk drives has been impacted due to external component supply constraints.
Central European Distribution Corp. (CEDC) stock grew 8.82 percent to $3.70 in the pre-market trading. Brokerage firm Citigroup said Russian Standard Corporation and its Chairman Roustam Tariko filed a 9.9 percent stake in Central European Distribution last night, according to the Fly on the Wall. Citi believes any potential takeover of Central European Distribution would likely need consent from the company's board given its recently adopted anti-takeover measures.
Onyx Pharmaceuticals, Inc. (ONXX) stock rose 4.86 percent to $44.88 in the pre-market trading. The company said the U.S. Food and Drug Administration (FDA) has accepted the New Drug Application (NDA) submission for carfilzomib, a next generation proteasome inhibitor, for the potential treatment of patients with relapsed and refractory multiple myeloma. The submission is based on the 003-A1 study, an open-label, single-arm Phase 2b trial. The trial evaluated 266 heavily-pretreated patients with relapsed and refractory multiple myeloma who had received at least two prior therapies, including bortezomib and either thalidomide or lenalidomide. Refractory disease was defined as less than or equal to a 25 percent response or progression during therapy, or progression within 60 days after completion of therapy. The primary endpoint was overall response rate. Secondary endpoints included duration of response, clinical benefit rate, overall survival, time-to-progression, progression-free survival, and safety. Safety data from additional carfilzomib studies were also included in the submission.
Randgold Resources Ltd. (GOLD) stock gained 3.86 percent to $101.22 in the pre-market trading.
Research In Motion Ltd. (RIMM) stock increased 3.70 percent to $17.09 in the pre-market trading. The company launched BlackBerry Mobile Fusion, its next-generation enterprise mobility solution. The company said its BlackBerry Mobile Fusion will simplify the management of smartphones and tablets running BlackBerry, Google Android and Apple iOS operating systems. BlackBerry Mobile Fusion will provide several mobile device management capabilities for all supported mobile devices. The capabilities include asset management, configuration management, security and policy definition and management, secure and protect lost or stolen devices, user- and group-based administration, multiple device per user capable, application and software management, connectivity management, centralized console and high scalability.
Research In Motion said the BlackBerry smartphones will continue to benefit from the many advantages of the end-to-end BlackBerry solution including the same advanced IT management, security and control available with BlackBerry Enterprise Server 5.0.3, which is part of BlackBerry Mobile Fusion.
Tellabs Inc. (TLAB) stock declined 3.05 percent to $3.81 in the pre-market trading. In a regulatory filing, the company said it determined that $17.5 million of revenue recognized in the July quarter of 2011, should have instead been recognized in the quarter ended Sept. 30, 2011. As a result, the company have concluded that the previously issued interim financial statements included in its Forms 10-Q as of and for the quarters ended July 1, and Sept. 30, 2011, should no longer be relied upon. In the second quarter of 2011, the company had recognized $15.3 million of revenue related to a project with a customer outside North America.
The company restated its second quarter loss to $29.4 million or $0.08 per share from previously reported loss of $20.1 million or $0.06 per share and third quarter loss to $130.0 million or $0.36 per share from previously reported loss of $138.2 million or $0.38 per share. The company restated its second quarter revenue to $316.7 million from previously reported $334.2 million, and its third quarter revenue to $329.8 million from previously reported $313.8 million.
ASML Holding NV (ASML) stock moved down 0.53 percent to $37.30 in the pre-market trading.
Netflix, Inc. (NFLX) stock moved down 0.39 percent to $69.68 in the pre-market trading.
Microsoft Corp. (MSFT) stock moved down 0.24 percent to $24.81 in the pre-market trading. At a joint customer and partner forum in Beijing, Microsoft and AgreeYa Mobility announced a protocol licensing agreement that allows AgreeYa Mobility solutions to interoperate with select Microsoft enterprise applications and services. This licensing agreement will enable AgreeYa Mobility to create solutions for non-Microsoft mobile platforms (including iOS, Android, RIM and WebOS) that connect with Microsoft enterprise back-end systems. The goal of the agreement is to expand the reach of Microsoft's enterprise applications and cloud services across a broad range of heterogeneous mobile devices and tablets. AgreeYa Mobility will use the protocols licensed from Microsoft to create mobile solutions that connect to Remote Desktop Services, Windows Azure, Active Directory and SharePoint.
A consortium of investors led by Silver Lake Partners and Microsoft is one of the several parties that will submit a plan to take a minority stake in Yahoo Inc. (YHOO), the New York Times reported citing people familiar with the matter. Silver Lake, Microsoft and its consortium will likely include venture capital firm Andreessen Horowitz. The consortium reportedly discussed the possibility of installing Marc Andreessen, a co-founder of Netscape as well as Andreessen Horowitz, as a member of Yahoo's board. Another private equity firm, TPG Capital, is also predicted to submit a proposal to acquire a minority stake in Yahoo. Both the plans are said to involve taking as much as a 20 percent stake in the Internet giant.