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Earnings Analysis: 
Macrovision Net Jumps Ten-Fold
Author: George Shopov
123jump.com


Macrovision, the producer of copyright protection and video scrambling technologies, saw its profit rise more than ten-fold in the fourth quarter, bolstered by strong demand for its products. Revenue reached record level.

 
Macrovision Corporation (MVSN: chart) of Santa Clara, California, announced after Monday’s closing bell that its quarterly earnings burgeoned more than ten-fold on the back of solid holiday sales of its DVD copy protection software. The producer of copyright protection and video scrambling technologies turned in net income of $10.7 million, or 21 cents a share, for its fiscal fourth quarter of 2003, in contrast to net income of $900,000, or 2 cents a share, in the comparable period of fiscal 2002. Earnings before extraordinary items came in at 24 cents a share, for the quarter ended December 31, up from a year-ago profit excluding items of 19 cents a share, and a penny above the consensus estimate of analysts. Macrovision said fourth-quarter revenue advanced to a record $39.9 million from $30.2 million, a year earlier. Analysts had called for revenue of $34.8 million. Macrovision said it also benefited from the rise in enterprise software electronic licensing sales.

Looking ahead, Macrovision said it expects first-quarter earnings excluding items of 13 cents to 14 cents a share, on revenue of $31 million to $32 million.

Macrovision shares closed Monday up 93 cents, or 4.76%, at $20.45. The stock shed 85 cents to $19.60 in after-hours trading.

Ducommun Incorporated (DCO: chart) of Long Beach, California, said Monday that its fourth-quarter net earnings rocketed up to $5.1 million, or 51 cents a share, from net income of $541,000, or 5 cents a share, in the year-ago equivalent. The aircraft component maker attributed the results to higher military sales and its acquisition of microwave switch maker DBP Microwave Inc. Total revenue climbed 15.9% in the quarter to $58.3 million, from $50.3 million a year earlier.

The stock gained 24 cents to $22.69 at market close Monday.

Hovnanian Enterprises, Inc. (HOV: chart) reported after market close Monday that its quarterly profit jumped 29%, boosted by strong demand for new homes and lower-than-expected costs. The Red Bank, New Jersey-based home builder posted net income of $57.7 million, or $1.74 a share, for its fiscal first quarter, compared with net income of $44.8 million, or $1.35 a share, in the same period last year. Quarterly revenue rose to $775.2 million, a 24% improvement from $627.6 million, a year ago.

Hovnanian shares rose 3.79% on Monday to $83.75.

Innovo Group Inc. (INNO: chart) of Commerce, California, posted Monday a fourth-quarter net loss of $5.8 million, or 27 cents per share, in contrast to a net profit of $41,000, or nil per share, in the same period a year ago. The apparel company cited inventory write downs and adjustments, and an increase in personnel, as main factors for the loss. Net sales surged to $37.3 million in the quarter, from $9.5 million, last year.

The stock plummeted 19.26% to close Monday at $2.18.

HSBC Holdings plc (HBC: chart) announced Monday a 40.5% rise in its 2003 earnings, helped by improving economies and its recent acquisitions. The United Kingdom-based banking company said it had a profit of $8.77 billion in 2003, compared with a prior-year profit of $6.24 billion. HSBC recorded revenue of $41.1 billion in 2003, up 54% from a year earlier, aided by growth in unsecured lending.

HSBC shares closed Monday at $81.30, down 45 cents, or 0.55%.

Cardiac Science, Inc. (DFIB: chart) of Irvine, California, said Monday its quarterly loss widened from a year ago, due to an inventory impairment charge. The maker of public access defibrillators reported a loss of $6.5 million, or 8 cents a share, for its fourth quarter, against a loss of $3.7 million, or 5 cents a share, in the corresponding period last year. Revenue jumped 24% to $17.7 million, in the quarter, from $14.3 million a year ago.

The stock plunged 5.29% on Monday to $4.12. Company shares lost 16 cents to $3.96 in after-market trade.

Maytag Corporation (MYG: chart) reiterated Monday its financial outlook for the fiscal first quarter. The Newton, Iowa-based U.S. No.3 maker of home appliances said it sees first-quarter earnings in the range of 42 cents to 47 cents a share, including 8 cents in restructuring charges. For the full year, Maytag expects to earn between $1.90 and $2.00 a share, including charges.

Maytag shares edged up 69 cents to close Monday at $28.92.

MedImmune, Inc. (MEDI: chart) of Gaithersburg, Maryland, said Monday it sees its first-quarter earnings falling short of analysts’ projections, citing higher expenses for research. The drug maker forecast a profit of 40 to 43 cents per share, for the first quarter, on revenue of $485 million to $510 million. The current mean estimate of analysts is for a profit of 54 cents a share.

The stock dived 6.19% on Monday to $24.10.

WGL Holdings, Inc. (WGL: chart) lifted Monday its second-quarter earnings target and now expects to earn between $1.61 and $1.71 a share, up from its previous guidance for a profit of $1.45 to $1.55 a share. Analysts currently expect the natural gas distributor to post a profit of $1.49 a share, on average. The Washington, DC-based company said colder-than-expected weather and a gain on the sale of real estate boosted its outlook.

WGL shares inched down a penny to $28.97 at market close Monday.

Union Pacific Corporation (UNP: chart) of Omaha, Nebraska, said Monday that it will miss its profit outlook for the first quarter, hurt by a recent unfavorable court decision. The transportation company expects its earnings to be below the previously projected profit range of 74 cents to 80 cents a share. The average analysts’ estimate is for earnings of 79 cents per share.
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