The top pre-market NASDAQ Stock Market gainers are: USA Technologies, Rediff.com India, Mindspeed Technologies, Sify Technologies, Calamos Asset Management, and Veeco Instruments. The top pre-market NASDAQ Stock Market losers are: Wilshire Bancorp, Lawson Software, ZST Digital Networks, Tellabs, Netflix, and Express Scripts.
USA Technologies Inc. (USAT) stock jumped 16.61 percent to $3.37 in the pre-market trading. Verizon Wireless and USA Technologies announced a collaboration that the companies believe will accelerate the adoption of small-ticket, wireless, cashless payment services and machine-to-machine applications via USA Technologies’ ePort Connect Service. The USA Technologies solution will now include the Verizon Wireless network for connectivity that enables wireless point-of-sale payments at vending machines via credit and debit cards.
Additionally, USA Technologies expects to benefit from Verizon Wireless’ Machine to Machine Management Center portal managed through nPhase, a Verizon Wireless - Qualcomm joint venture and pioneer in helping businesses ease deployment and management of M2M applications. According to an industry census published by Vending Times, a trade publication that follows the vending industry, vending machines in the U.S. generated almost $43 billion in revenue in 2009.
Rediff.com India Ltd. (REDF) stock climbed 7.95 percent to $12.35 in the pre-market trading. The company said it introduced its group deals service, named Rediff Deal Ho Jaye!, offering consumers an opportunity to discover new local services at discounted prices. Rediff.com offers advertisers the ability to reach consumers in 40 cities throughout India. The service also enables consumers to learn about exciting things to do in their cities, to try out services that they haven’t tried before at significant discounts and to stay informed of new deals.
Mindspeed Technologies Inc. (MSPD) stock grew 7.08 percent to $8.77 in the pre-market trading, as it guided third quarter revenue above Street view. The company expects third quarter revenue of $41.3 million to $42.8 million, while Street predicts $40.52 million. The company reported second quarter adjusted earnings of $0.4 million or 1 cent a share, down from $4.5 million or 15 cents a share last year. Revenue fell to $38.5 million from $40.2 million. Analysts had expected breakeven a share on revenue of $37.99 million for the second quarter.
Sify Technologies Ltd. (SIFY) stock gained 5.70 percent to $7.23 in the pre-market trading.
Calamos Asset Management Inc. (CLMS) stock increased 4.78 percent to $16.21 in the pre-market trading. Standard & Poor's, a subsidiary of The McGraw-Hill Companies Inc. (MHP), said SmallCap 600 constituent Catalyst Health Solutions Inc. (CHSI) will replace AirTran Holdings Inc. (AAI) in the S&P MidCap 400 index, and Calamos Asset will replace Catalyst Health in the S&P SmallCap 600 index after the close of trading on May 2.
Veeco Instruments Inc. (VECO) stock rose 3.77 percent to $49.78 in the pre-market trading, , as its first quarter earnings and revenue exceeded Street view. Adjusted profit was $56.55 million or $1.33 a share, up from $17.59 million or $0.42 a share last year. Revenue improved 89 percent to $254.67 million. Analysts had expected profit of $1.21 a share on revenue of $246.68 million.
Veeco Instruments expects second quarter adjusted earnings of $1.20 to $1.45 a share and revenue of $255 million to $285 million, while Street analysts predict profit of $1.34 a share on revenue of $270.88 million. Veeco's $530 million in backlog, combined with our forecasted Q2 revenue increase and very positive order outlook give us even greater confidence in our full year 2011 guidance of over $1 billion in revenues and adjusted earnings of greater than $5.00 a share, said Chief Executive John Peeler. Analysts expect earnings of $5.17 a share on revenue of $1.07 billion for the full year 2011.
Wilshire Bancorp Inc. (WIBC) stock plunged 20.16 percent to $4.04 in the pre-market trading, as it reported wider-than-expected first quarter loss. Loss was $52.1 million or $1.77 a share, compared to a profit of $2.4 million or $0.08 a share last year. The loss is attributable to tax expenses of $38.1 million that resulted from a deferred tax asset valuation allowance recorded in the first quarter of 2011, in addition to an increase in provision for loan losses as a result of reclassifying $93.4 million in loans to loans held-for-sale and marking the loans to their expected fair value.
Total interest income for the quarter fell to $35.62 million from $41.3 million, while non-interest income rose to $8.68 million from $7.3 million. Analysts had expected a loss of $0.04 a share on revenue of $33.02 million.
Lawson Software, Inc. (LWSN) stock fell 7.46 percent to $11.22 in the pre-market trading. The company said it agreed to be acquired by GGC Software Holdings, Inc., an affiliate of Golden Gate Capital and Infor, in a transaction worth around $2 billion. Lawson's stockholders will receive $11.25 per share in cash, which represents a premium of about 14 percent to Lawson's closing share price on March 7. The transaction has fully committed debt financing from Credit Suisse, Bank of America Merrill Lynch, Morgan Stanley, Royal Bank of Canada and Deutsche Bank. The deal is currently expected to close in the third calendar quarter of 2011.
ZST Digital Networks, Inc. (ZSTN) stock tumbled 7.09 percent to $2.62 in the pre-market trading. The company said its Chief Executive Officer Zhong Bo has issued a letter to shareholders in response to short-seller allegations regarding the company's operations, financial disclosure and transparency. The company has received numerous inquiries from investors seeking further insight into the recent market speculation and share price volatility, which it believes are a result of targeted efforts on behalf of short-sellers to reduce ZST's share price and thereby profit financially.
The company believes that the allegations made against it by certain market participants are baseless and without merit. The company's financial position and operations are fundamentally sound, and it continues to be well positioned to benefit from the growth opportunities in the IPTV and commercial GPS markets in Henan Province. The company is in the midst of evaluating various legal options with respect to such baseless statements.
Tellabs Inc. (TLAB) stock declined 5.38 percent to $5.10 in the pre-market trading, as it guided second quarter revenue below Street view. The company expects second quarter revenue of $325 million to $345 million, while Street predicts $356.52 million. The company also expects adjusted gross margin to flat with last quarter, plus or minus 1 or 2 points, depending on product and customer mix. The company expects second-quarter adjusted operating expense to be down slightly in the low $140 millions. Going forward, we will continue to invest in the smart mobile Internet through increased R&D spending to position Tellabs for long-term growth, said Rob Pullen, Tellabs president and chief executive officer.
Tellabs reported first quarter adjusted loss of $10.9 million or 3 cents a share, compared to a profit of $44.2 million or 11 cents a share last year. Revenue fell to $322.4 million from $379.2 million. Analysts had expected a loss of 3 cents a share on revenue of $326.14 million.
Netflix, Inc. (NFLX) stock slid 4.88 percent to $239.38 in the pre-market trading, as it guided second quarter earnings below Street view. The company expects second quarter earnings of $50 million to $62 million or $0.93 to $1.15 a share. The company expects domestic revenue of $762 million to $778 million and international revenue of $16 million to $20 million. Street analysts predict profit of $1.19 a share on revenue of $763.01 million. The company expects total domestic subscribers of 24.0 million to 24.8 million and international subscribers of 0.9 million to 1.05 million.
Looking forward, our prior period comps for net adds are going to get tougher, and while we expect our net adds the rest of this year to continue to exceed those of the prior year, it won't be at a pace of nearly 2X like in Q1, Netflix said in a statement.
Netflix reported first quarter earnings of $60.23 million or $1.11 a share, up from $32.27 million or $0.59 a share last year. Revenue rose to $718.55 million from $493.67 million. Analysts had expected profit of $1.08 a share on revenue of $703.60 million.
Express Scripts Inc. (ESRX) stock decreased 3.20 percent to $53.60 in the pre-market trading, as its first quarter earnings and revenue missed Street view. Profit was $326.5 million or 61 cents a share, up from $260.2 million or 47 cents a share last year. Adjusted earnings were 66 cents a share, up from 55 cents a share last year. Revenue declined to $11.09 billion from $11.14 billion. Analysts had expected profit of 69 cents a share on revenue of $11.56 billion. The company still expects 2011 adjusted earnings of $3.15 to $3.25 a share, while Street predicts $3.22 a share.
Separately, Express Scripts said it intends to begin a public offering of a benchmark amount of senior notes some time within the next few weeks. The company currently plans to use the net proceeds from the debt offering to repurchase its common stock under its existing share repurchase program, or for other general corporate purposes.