STOCKS TO WATCH: Alliance Semiconductor, eBay and Value America

Alliance shares will be worth watching Monday after the chipmaker announced late Friday that it had revised its first quarter results, although there is no impact on its operating income from the change.

The company said results for the quarter, which ended on June 30, have been revised to reflect a pre-tax, non-operating gain of about $11 million in connection with its stake in Malleable Technologies, which was acquired by PMC-Sierra in a deal which was completed on June 27.

The revised net income for the fiscal first quarter was $33.3 million, resulting in net earnings of $0.78 per diluted share, versus net income of $26.8 million and net earnings of $0.63 per diluted share as previously reported.

First quarter operating income remained unchanged at $9.4 million or $0.13 a share.

Alliance shares closed up 1/2 to 23 Friday.

The online retailer's shares could face some pressure Monday after a Barron's article reported that its "core domestic auction business is losing a step or two."

The paper said eBay's online domestic auction count is stalling with the number holding steady since March at more or less 4.5 million daily auctions. Barron's credited Quotetracker.com for these figures.

Barron's also said eBay's revenues per auction have slipped for three consecutive quarters. Revenues per auction were $1.41 in the second quarter, $1.44 in the first quarter and $1.48 in the fourth quarter of 1999, according to Barron's.

The measurements do not include international auctions, which make up less than 10 percent of the company's revenues, Barron's said.

In its latest quarter, eBay reported expectation-topping earnings and higher revenues that were modestly above most forecasts. The company also said its user base had more than doubled over the past year.

Barron's quoted Gary Bengier, the company's chief financial officer, saying ``eBay tends to be seasonally slower in (the second quarter) and (the third quarter) while our strongest quarter typically is the first quarter, and we expect this seasonality to continue.''

eBay shares closed off 3/8 to 48 1/2 Friday.

Although there's not much more room left for a correction, Value America shares will be interesting to watch. The online retailer said late Friday it had filed for Chapter 11 bankruptcy protection, shut down its Internet retail operations, and cut another 46 percent off its already dwindling workforce.

The company said it was taking these steps to focus on its electronic-services business, which involves developing online operations and infrastructure systems for third party manufacturers, vendors and distributors -- essentially allowing them to conduct their own business on the Web.

"After careful consideration, and despite our good faith efforts, we were unable to establish to our satisfaction that our Internet retailing operation would become profitable within a reasonable time frame," Chairman and Chief Executive Glenda Dorchak said in a statement.

As of Friday evening, users were unable to access the company's Web site.

The company said it laid off 185 of its staff, almost half of its 404 employees. The bankruptcy filing was made in the federal bankruptcy court for the Western District of Virginia.

Value America shares closed unchanged at 23/32 Friday.

Reuters contributed to this report.>