The top pre-market NASDAQ Stock Market gainers are: Varian Semiconductor Equipment Associates, Green Mountain Coffee Roasters, Axcelis Technologies, ValueClick, AXT, and Silicon Graphics International. The top pre-market NASDAQ Stock Market losers are: Key Tronic, Motricity, Kandi Technologies, First Solar, Century Aluminum, and Zalicus.
Varian Semiconductor Equipment Associates Inc. (VSEA) stock jumped 51.37 percent to $61.38 in the pre-market trading, as Applied Materials, Inc. (AMAT) agreed to buy Varian Semiconductor for $63 a share or about $4.9 billion in cash on a fully-diluted basis. Varian shareholders will receive $63 in cash for each share they hold at the time of closing. The transaction price represents a premium of 55 percent to Varian's closing share price on May 3. Applied Materials expects to fund the transaction with a combination of existing cash balances and debt. After the close of the transaction, Varian will operate as a business unit of Applied Materials' Silicon Systems Group and continue to be based in Gloucester, Massachusetts.
Green Mountain Coffee Roasters Inc. (GMCR) stock climbed 17.84 percent to $75.50 in the pre-market trading, as it guided third quarter earnings above Street view. The company expects third quarter adjusted earnings of $0.34 to $0.38 per share and sales growth of 90 percent to 95 percent, while Street predicts profit of $0.31 per share on revenue of $589.50 million with sales growth of 89.20 percent.
The company raised its fiscal 2011 adjusted earnings guidance to range of $1.43 to $1.50 per share from previous forecast of $1.19 to $1.29 per share. The company also increased its 2011 sales growth outlook to range of 82 percent to 87 percent from previous estimate of 75 percent to 80 percent. Street analysts predict profit of $1.25 per share on revenue of $2.46 billion with sales growth of 81.10 percent.
Green Mountain reported second quarter adjusted earnings of $71.5 million or $0.48 per share, up from $28.9 million or $0.21 per share last year. Sales surged 101 percent to $647.7 million. Analysts had expected profit of $0.38 per share on revenue of $629.35 million.
In addition, Green Mountain said it plans to offer 7.10 million shares of its common stock in an underwritten public offering. Certain stockholders also plan to offer an aggregate of 403,883 shares of common stock in the offering. The company said it plans to grant the underwriters a 30-day option to purchase up to 1.13 million additional shares of common stock to cover overallotments, if any. The company intends to use the net proceeds from the offering to repay outstanding debt under its credit facility and for general corporate purposes.
Axcelis Technologies Inc. (ACLS) stock advanced 17.61 percent to $2.07 in the pre-market trading.
ValueClick, Inc. (VCLK) stock improved 13.48 percent to $18.69 in the pre-market trading, as it guided second quarter above Street view. The company expects second quarter adjusted earnings of $0.25 to $0.26 per share and revenue of $120 million to $122 million, while Street predicts profit of $0.20 per share on revenue of $119.78 million. The company's first quarter adjusted earnings rose to 20.94 million or $0.26 per share from $15.55 million or $0.19 per share last year. Revenue grew 22 percent to $116.51 million. Analysts had expected profit of $0.18 per share on revenue of $113.66 million for the first quarter.
Jefferies & Co. upgraded its rating on shares of ValueClick to buy from hold and increased its price target to $20 from $17, based on improving fundamentals and lower risk profile. We're upgrading ValueClick to reflect higher growth potential in core segments over time, strengthening ad/e-com environment, solid execution following the return of Jim Zarly as Chief Executive Officer and lower risk profile, said Youssef Squali, an analyst at Jefferies.
AXT Inc. (AXTI) stock grew 10.43 percent to $7.94 in the pre-market trading, as it guided second quarter above Street view. The company expects second quarter earnings of $0.13 to $0.16 per share and revenue of $26.5 million to $27.5 million, while Street predicts profit of $0.13 per share on revenue of $25.83 million.
As we move into Q2, we are very pleased to see solid demand for our semi-insulating and semi-conducting gallium arsenide substrates from our traditional markets and we are making good progress on our plans to further penetrate strategically important markets for our products. Our unique business model continues to provide us with exciting growth opportunities, positioning us well for continued expansion in 2011, said Morris Young, chief executive officer of AXT.
The company reported first quarter earnings of $4.21 million or $0.13 per share, up from $2.58 million or $0.08 per share last year. Revenue rose to $24.57 million from $18.64 million. Analysts had expected profit of $0.12 per share on revenue of $24.48 million.
Silicon Graphics International Corp. (SGI) stock gained 9.22 percent to $18 in the pre-market trading, as its third quarter loss narrowed from last year. Loss from continuing operations narrowed to $1.67 million or $0.05 per share from $20.26 million or $0.67 per share last year. Adjusted earnings from continuing operations were $2.28 million or $0.07 per share, compared to a loss of $10.75 million or $0.36 per share last year. Revenue grew to $143.66 million from $107.82 million, while adjusted revenue rose to $135.79 million from $128.93 million.
Silicon Graphics reiterated its fiscal 2011 adjusted revenue guidance at the midpoint of the $600 million to $625 million range, and adjusted earnings outlook of $0.40 to $0.50 per share. The company also reiterated its gross margin forecast in the upper half of the 27 percent to 30 percent range, and adjusted operating expenses estimate of $171 million to $175 million. For the fiscal 2012 internal plan, the company expects revenue growth of 15 percent to 20 percent, and to be profitable. The company expects fiscal 2012 adjusted gross margin of 100 basis points growth and adjusted operating expenses to increase 10 percent to 12 percent.
Key Tronic Corp. (KTCC) stock dropped 12.11 percent to $4.50 in the pre-market trading, as its third quarter earnings declined due to increased material, freight and operational expenses associated with the company’s new product mix and program startups. Profit was $724,000 or $0.07 per share, down from $4.4 million or $0.43 per share last year. Results for last year quarter included a net deferred tax benefit of $2.2 million or about $0.22 per share. Revenue grew 23 percent to $63.4 million.
Key Tronic expects fourth quarter earnings of $0.07 to $0.12 per share and revenue of $61 million to $65 million. Moving into the fourth quarter of fiscal 2011, we are seeing some increased demand in the forecasts from our longstanding customers, and we continue to focus on moving the new programs into production. We expect to be generating revenue from 30 EMS customers in the fourth quarter compared to 20 EMS customers contributing to fourth quarter revenue in fiscal year 2010, said Craig Gates, President and Chief Executive Officer of Key Tronic.
Motricity, Inc. (MOTR) stock fell 10.23 percent to $11.50 in the pre-market trading. Adjusted profit for the first quarter was $1.3 million or $0.03 per share, up from $0.5 million or $0.01 per share last year. Revenue rose to $32.2 million from $29.1 million. Analysts had expected profit of $0.01 per share on revenue of $32.60 million.
For the second quarter, the company expects adjusted earnings of $3.5 million to $4.5 million and revenue of $36 million to $38 million. Motricity's 2-3 year financial targets include annual revenue growth of about 30 percent, and further margin expansion, reaching an adjusted EBITDA margin of about 32 percent and adjusted profit margin of about 25 percent. Street analysts predict profit of $0.10 per share on revenue of $37.40 million for the second quarter.
Kandi Technologies, Corp (KNDI) stock slid 8.42 percent to $2.50 in the pre-market trading.
First Solar, Inc. (FSLR) stock slid 7.77 percent to $124.20 in the pre-market trading. Profit for the first quarter was $116.0 million or $1.33 per share, down from $172.3 million or $2.00 per share last year. Sales declined slightly to $567.29 million from $567.96 million, mainly due to lower average selling prices. Analysts had expected earnings of $1.16 per share on revenue of $544.37 million.
First Solar still expects full year 2011 earnings of $9.25 to $9.75 per share and net sales of $3.7 billion to $3.8 billion, while Street predicts profit of $9.52 per share on revenue of $3.79 billion. Despite European market uncertainties, First Solar has good visibility into our demand for 2011. We continue to execute our cost roadmaps, invest in new module capacity, build our project pipeline and develop promising new markets around the world, said Rob Gillette, Chief Executive Officer of First Solar.
Century Aluminum Co. (CENX) stock decreased 7.70 percent to $18.22 in the pre-market trading. Profit for the first quarter was $25.0 million or $0.25 per share, up from $6.3 million or $0.06 per share last year. Changes to the Century of West Virginia retiree medical benefits program increased quarterly results by $9.4 million with an associated discrete tax benefit of $2.1 million. Sales rose to $326.3 million from $285.4 million. Analysts had expected profit of $0.28 per share on revenue of $335.06 million.
Zalicus Inc. (ZLCS) stock declined 5.36 percent to $2.65 in the pre-market trading, as its first quarter loss was wider than Street estimates. Loss widened to $10.7 million or $0.12 per share from $3.1 million or $0.05 per share last year. Revenue fell to $1.27 million from $41.33 million, primarily due to a $40.0 million milestone payment from its commercial partner Covidien following the FDA approval of Exalgo on March 1, 2010. Analysts had expected a loss of $0.09 per share on revenue of $1.55 million.
We are actively moving our pain and inflammation-focused portfolio forward during 2011. We plan to initiate a Phase 2b clinical trial of Synavive for rheumatoid arthritis in the second quarter, and we identified promising Ion channel leads to move into clinical development for pain in the second half of the year, said Mark Corrigan, President and Chief Executive Officer of Zalicus.