September 2, 2008

Movers: Dell, Santander, Petsmart, Greenfield Online, Marvell Technology

Dell (DELL) posts $0.31, vs. $0.33 a year ago, second quarter EPS as narrowed gross margin offset 11% revenue rise. Wall Street was looking for $0.36. Says it will continue to incur costs as it realigns its business to improve competitiveness, reduce headcount and invest in infrastructure and acquisitions. Sees continued conservatism in IT spending in the U.S.; conservatism has extended into Western Europe and several countries in Asia. S&P downgrades to hold from buy.

Santander Bancorp (SBP) says in light of the continuing challenging general economic conditions in Puerto Rico and the global capital markets, its board of directors has voted to discontinue payment of the quarterly cash dividend. Separately, newswires report that president and CEO Jose Ramon Gonzalez has resigned. He will be succeeded by Juan Moreno Blanco as soon as legal and regulatory steps are completed.

Petsmart (PETM) posts $0.30, vs. $0.35, second quarter EPS despite 4% higher same-store sales [SSS], 11% higher total sales. Street was looking for $0.28. It sees third quarter SSS growth in the mid-single digits and EPS of $0.25-$0.29. For fiscal year 2009, sees mid-single digits SSS, high single digits to low double digits total sales, $1.51-$1.59 EPS. S&P downgrades to buy from strong buy. Goldman raises estimates, target, maintains buy.

Greenfield Online (SRVY) says it in merger agreement to be acquired by Microsoft (MSFT) in a $486 million deal. Terms: $17.50 cash per SRVY share. SRVY says immediately prior to entry into merger deal with MSFT it had terminated its previously announced merger agreement with affiliates of Quadrangle Group, following expiration of the matching rights granted to Quadrangle under the Quadrangle merger deal. SRVY is required to pay Quadrangle a $5 million fee.

International Rectifier (IRF) announces that its Board of Directors has unanimously determined that the unsolicited, non-binding proposal by Vishay to acquire all of the outstanding shares of IRF for $21.22 per share in cash is not in the best interests of IR and its shareholders.

Marvell Technology Group (MRVL) posts $0.24, vs. $0.06, second quarter EPS on 28% revenue rise. Reportedly sees $0.24-$0.26 third quarter non-GAAP EPS on revenue of $860-$880 million. Notes weakening U.S. economy.

Qualcomm (QCOM) announces that a federal judge found that co. violated certain injunctions ordered last December designed to prevent QCOM from continued infringement of three Broadcom (BRCM) patents.

Sigma Designs (SIGM) posts $0.35, vs. $0.22, second quarter EPS on 37% revenue rise. Posts $0.47 non-GAAP EPS. Street was looking for $0.40.

Omnivision Technologies (OVTI) posts $0.25, vs. $0.35, first quarter non-GAAP EPS despite slightly higher revenue. Names Anson Chan as CFO, replacing Peter Leigh, who will retire, effective September 30. Sees second quarter revenue of $160-$180 million and non-GAAP EPS of $0.13-$0.25.

Micros Systems (MCRS) posts $0.37, vs. $0.33, fourth quarter GAAP EPS on 16% revenue rise. Posts non-GAAP EPS of $0.41. Sees fiscal year 2009 revenue of $1.075-$1.1 billion, GAAP EPS of $1.39-$1.50, non-GAAP EPS of $1.53-$1.64 [vs. Street consensus of $1.60].