Verizon Communications Inc. (VZ: chart) reported Monday that it reached an agreement to buy MCI Inc. (MCIP: chart) for $6.75 billion, in cash, shares and dividends. According to sources familiar with the situation, the boards of directors of both companies approved the acquisition late Sunday. Under the agreement, Verizon will pay $4.795 billion worth of its stock and $488 million in cash for MCI's shares. That means MCI shareholders will receive 0.4062 share of Verizon for each MCI share. In addition, MCI will pay its shareholders dividends worth $1.463 billion. Earlier on Sunday, rival Qwest Communications International Inc. (Q: chart) had raised its takeover bid for MCI to $7.3 billion in stock and cash from a previous offer of $6.3 billion. Despite its lower offer, New York-based Verizon, the largest local-phone company in the U.S., won the competition with Qwest, as, according to analysts, Verizon presents better growth opportunities, stronger balance sheet, and an ability to pay a greater dividend. The purchase of MCI will help Verizon transform into a major company serving large corporate customers. Ashburn, Virginia-based long-distance carrier MCI, which emerged from bankruptcy last spring, boasts 14 million residential and over one million business customers. The Verizon-MCI merger is the third big telecom deal for the past two months. In December last year, Sprint Corp. (FON: chart) agreed to acquire Nextel Communications Inc. (NXTL: chart) for $35 billion, and two weeks ago SBC Communications Inc. (SBC: chart) announced that it agreed to buy AT&T Corp. (T: chart) for $16 billion.

Dell Inc. (DELL: chart) announced after the bell Thursday fourth-quarter operating earnings that surpassed analysts’ expectations, boosted by strong demand from its U.S. business customers. However, the shares of the world's largest PC maker dropped more than 3% in after-hours trading, as quarterly revenue fell short of Wall Street’s projections, and the company forecast weaker-than-expected growth for the first quarter of 2005. Dell posted a net profit of $667 million, or 26 cents per share, for the fourth quarter of 2004, which included a tax charge of $280 million, or 11 cents a share. For the same quarter last year, net profit was $749 million or 29 cents per share. Excluding items, fourth-quarter earnings came to 37 cents a share, topping by a penny a share the consensus analysts’ estimate. For the quarter ended January 28, revenue increased 17% to $13.46 billion, but still missed analysts’ target of $13.54 billion. The Round Rock, Texas-based company said sales to U.S. business customers rose 19% from last year. U.S. consumer sales were up only 10%, hurt by pricing pressures. For the full year, earnings totaled $3.04 billion, or $1.18 per share, on revenue of $49.21 billion. That compares to $2.65 billion, or $1.01 per share, on revenue of $41.44 billion, for 2003.

Looking ahead, Dell forecast first-quarter income of 37 cents a share and revenue of $13.4 billion. Analysts predicted a profit of 36 cents a share, on revenue of $13.5 billion.

Dell shares gained 58 cents to $41.57 at market close Thursday. The stock dipped 3.20% to $40.24 in after-market trade.

Analog Devices, Inc. (ADI: chart) of Norwood, Massachusetts, posted Thursday an 8% drop in its quarterly profits, hurt by a decrease in revenue. The chip maker announced first-quarter earnings of $107.4 million, or 28 cents a share, compared with $116.8 million, or 30 cents a share, generated a year ago. The results were 1 cent a share below the mean analysts’ forecast. For the quarter ended January 29, sales eased 4% to $580.5 million, due to a decline in wireless handset products that were negatively impacted by excess inventory of wireless handsets by Chinese manufacturers.

The stock closed Thursday at $36.83, down 35 cents, or 0.94%. Company shares lost 21 cents to $36.62 in the extended session.

Brown & Brown, Inc. (BRO: chart) on Thursday turned in net income of $30.3 million, or 43 cents per share, for its fiscal fourth quarter, in contrast to net income of $25.8 million, or 37 cents per share, for the 2003 equivalent. The Daytona Beach, Florida-based insurer beat by 2 cents a share the average analysts’ estimate. The company attributed the results to strong revenue, which jumped 21% from last year to $163 million, helped by acquisitions.

Company shares shed 30 cents on Thursday to $43.50.

Pixar Animation Studios (PIXR: chart) of Emeryville, California, reported Thursday lower quarterly earnings, as revenues declined from a year earlier. The animation studio, which produced ‘The Incredibles’ last year, posted fourth-quarter net income of $55.2 million, or 91 cents per share, down from $83.9 million, or $1.44 per share, for the 2003 comparable period. Despite the drop, the earnings outpaced the average analysts’ forecast of 76 cents per share. Quarterly revenue fell to $108.9 million from $164.8 million.

The stock gained $1.00 to close Thursday at $89.88. Pixar shares rose 1.25% to $91.00 in after-hours trading.