STOCKS TO WATCH: CompUSA, eBay, Extreme Networks, S3
Expect the following stocks to be the most actively traded Thursday: CompUSA, eBay, Extreme Networks, Flycast Communications, and S3.
Sales for CompUSA Inc. (NYSE: CPU) didn't fall as much as expected in the first quarter.
After market close Wednesday, the retailer of PCs and related products reported fiscal first quarter sales of $1.36 billion, down 2 percent from $1.39 billion in the same period a year earlier. The company had earlier told analysts to expect percentage declines in double digits.
Sales at CompUSA's 195 stores open at least a year stayed essentially flat. Thirty-three stores converted from the acquired Computer City business are not included in the comparable store sales comparison, although they are part of the total sales figure.
Complete first quarter results are scheduled for release Nov. 4.
The online auctioneer will join the Nasdaq-100 Index Wednesday, replacing Centocor Inc. (Nasdaq: CNTO), which is being acquired. EBay rose 1 to 139.
Extreme Networks, provider of switching for local area networks, filed Wednesday to sell 6.5 million shares, a Securities and Exchange Commission filing showed.
The company plans to sell 1.275 million shares while stockholders including Gordon Stitt, the company's president, chief executive officer, and chairman as well as others, will sell the remaining 5.225 million shares, the filing said.
The company, which matches unsold Internet advertising space with marketers needs, said revenue for its third quarter ending today will beat estimates by more than 70 percent, rising to $11 million to $12 million. Operating losses will be less than estimated. Flycast rose 1 to 38 at Wednesday's close.
General Motors Corp. (GM) is likely to spin off or reduce its majority stake in Hughes, the satellite maker and owner of satellite broadcaster DirecTV, in the next six months, according to Merrill Lynch analyst Tom Watts. Hughes rose 2 1/16 to 56 9/16. GM rose 7/8 to 62 9/16.
The researcher and reseller of corporate software over the Internet said its loss narrowed to 20 cents a share for its second quarter ended Aug. 31 from 66 cents a year ago. Revenue more than doubled. Intraware rose 1/16 to 27.
Computer graphics chip maker S3 said on Wednesday it will likely take its RioPort online music unit public as part of its strategy to stay at the forefront of the exploding Internet music scene.
S3 acquired RioPort, which runs a digital music Web site and holds the technology behind the popular Rio portabel MP3 music player, when it bought rival Diamond Multimedia Systems in June.
The company said at the time of the buyout that it planned to spin off the RioPort division, but S3 Chief Executive Officer Ken Potashner said on Tuesday it would probably seek to sell shares of the new company to the public.
The owner of the long-distance network said its third-quarter earnings won't meet estimates. It expects to earn 4 cents to 5 cents a share, compared with the 13-cent average estimate of six analysts surveyed by First Call. Teleglobe fell 1/4 to 17 1/16 at Wednesday's close.
Reuters contributed to this report.