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Reported by Star-Bulletin staff & wire
Wednesday, July 5, 2000
Computer Associates falls on profit warning
ISLANDIA, N.Y. -- Computer Associates International Inc. shares fell as much as 44 percent today after the No. 4 U.S. software maker warned that fiscal first-quarter profit missed analysts' estimates because of sluggish sales in Europe and in its mainframe-computer software line. The shares plunged $21.87 to $29.25 after falling to $28.50, erasing almost two years of gains.The company said it failed to win several large contracts late in the quarter ended June 30. Sales were weak in France and Germany, President Sanjay Kumar said. The company estimated it earned 26 cents to 31 cents a share in the quarter, Kumar said. It was expected to earn 55 cents, according to analysts.
Deutsche Telekom eyes Cable & Wireless
FRANKFURT, Germany -- Deutsche Telekom AG shares rose as much as 4.8 percent amid optimism Europe's biggest phone company will deliver on its promise of making a major acquisition after snapping up several stakes in Eastern Europe this week.Telekom, armed with 86 billion euros ($82 billion) in new shares and $14.6 billion in proceeds from a record bond sale last week to make acquisitions, may make a bid for Cable & Wireless Plc of the U.K., German magazine Focus Money reported. Investors and analysts have said it would make sense for the German company to plug the holes in its European coverage rather than buying a U.S. company such as Sprint Corp., whose $152 billion combination with WorldCom Inc. is about to fall apart amid regulatory opposition.
Chip shares tumble on analyst report
NEW YORK -- Texas Instruments Inc., Advanced Micro Devices Inc. and National Semiconductor Corp. fell after Salomon Smith Barney Inc. analyst Jonathan Joseph forecast that semiconductor shipments will slow and prices will decline.Texas Instruments closed down $5.25 to $63.75. Advanced Micro fell $8.75 to $75.50 and National Semiconductor lost $7.75 to $50.37.