THE DAY AHEAD: Stocks to Watch

The computer disk drive part maker said it was cutting 35 percent of its staff and taking a $12 million charge for its current quarter. The company hopes that the restructuring will cut $14 million in costs per quarter. Applied Magnetics also plans a $25 million convertible debt issue.

Shares dipped 1/16 to 3 1/16.

It's not a fun time to be in the electronics distribution business. CHS said it plans to close 25 warehouses and raise the number of job cuts it plans to 700 as it seeks to cut $30 million in quarterly costs. CHS reported break-even first quarter results, far below the 9 cents a share in earnings expected. Shares were stagnant on Wednesday at 5 1/2.

The Palo Alto, Calif.-based maker of DSL-based communications products for the broadband market priced its 4 million share initial public offering at $21 a share, above the revised range between $16 a share and $18. Shares begin trading later today.

Morgan Stanley Dean Witter led the offering, and BancBoston Robertson Stephens and Dain Rauscher assisted.

Copper Mountain sells its wares with its own sales forces and has distribution relationships with Lucent Technologies Inc. and 3Com Corp.

In 1998, Copper Mountain generated $21.8 million in revenue, up from $211,000 in the previous year. NorthPoint Communications Inc. and Rhythms NetConnections Inc. made up 61 percent and 18 percent of sales, respectively, for last year.

The company pared its loss last year to $10.2 million from $11.01 million in 1997 and has an accumulated loss of $24.6 million.

Keep an eye out for Alloy Online Inc.'s (proposed ticker: ALOY) IPO, which could begin trading as early as tomorrow. Alloy in is a content and community builder for adolescents.

Late Wednesday, i2 Technologies said it would acquire privately held Smart Technologies Inc. for $2.1 million shares of common stock, or roughly $72 million.

i2 officials said the acquisition will be dilutive to its earnings for the rest of fiscal 1999 but it's hoping to make that up and then some in the years to come.

i2 Technologies shares closed up 2 3/8 to 24 Wednesday.

First Call consensus had predicted a profit of 49 cents a share in the fiscal year.

i2 shares peaked at 42 and change in July before sagging to a 52-week low of 9 in October.

STAR fell well short of analysts' estimates in its first quarter Wednesday, losing $7.6 million, or 14 cents a share, on sales of $228.2 million.

First Call consensus expected the Santa Barbara, Calif. company to earn 2 cents a share in the quarter.

Its shares fell 5/16 to 8 13/16 ahead of the earnings report.

Company officials blamed the first-quarter loss on merger expenses associated with the acquisition of United Digital Network Inc.

Still, it did manage to grow its sales by 67 percent compared to the year-ago quarter when it earned $1.3 million, or 3 cents a share, on sales of $137 million.

STAR Telecommunications shares moved up to a 52-week high of 29 13/16 in June before falling to a low of 7 1/8 in October.

Ten of the 13 analysts following the stock rate it either a "buy" or "strong buy."

First Call consensus expects it to earn 38 cents a share in the fiscal year.

The telecommunications provider posted a smaller-than-expected loss in its first quarter Wednesday, losing $108 million, or $2.05 a share, on sales of $1.5 million.

First Call consensus expected it to lose $2.21 a share in the quarter.

The $1.5 million in sales might not sound like much, but it represents an incredible improvement versus the year-ago quarter when it lost $38.5 million, or 73 cents a share, on sales of just $98,000.

In the quarter, Teligent launched local, long distance and high-speed Internet services in 11 markets, bringing the total number of in-service markets to 26.

The wireless local phone service provider beat first quarter expectations, reporting a narrower-than-expected loss of $3.72 cents a share. The First Call estimate was looking for a loss of $3.83 a share. Shares dropped 2 1/2 to 52 7/8.

-Eric C. Fleming contributed to this report.