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Earnings Analysis: 
Research In Motion and Cymer Raise Forecasts
Author: Savina Petrova
123jump.com



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Research In Motion raised its second-quarter outlook due to strong demand for its e-mail devices. Cymer, RF Micro, and Select Comfort also raised their quarterly forecasts.

 
Research in Motion Ltd (RIMM: chart), the maker of the BlackBerry e-mail device based in Waterloo, Ontario, said that it expects to beat second-quarter forecasts due to strong demand for its 6200 and 7200 series BlackBerries, which include models with color screens and built-in cell phones.

The company expects to earn two to five cents a share, up from its previous forecast of one cent profit and four cents loss. Revenue outlook was raised to $123 million to $126 million from $105 million to $115 million.

Research in Motion also said that it expects to add between 94,000 and 97,000 net new subscribers in the second quarter, beating its previous forecast of 80,000 to 90,000 additions. This will bring the BlackBerry subscriber base above 700,000.

Cymer Inc. (CYMI: chart), a maker of eximer lasers based in San Diego, California, raised its third-quarter revenue target to $64 million, up from the $62.4 million forecast in July. The increase reflects more orders for krypton fluoride systems than the company had anticipated. Other operating results will be in line with expectations.

RF Micro Devices Inc. (RFMD: chart), a wireless-chip maker based in Greensboro, North Carolina, raised its second-quarter outlook due to improved product mix and customer demand. The company expects to break even, compared with a loss of four to five cents a share it had forecast in July. First Call analysts expected a loss of three cents a share. Revenue is seen growing at least 10 percent to the middle $140 million range, compared iwht analyst projections of $135.8 million.

SigmaTron International Inc. (SGMA: chart), a provider of electronic manufacturing services based in Elk Grove Village, Illinois, reported first-quarter earnings of 38 cents a share, up from 19 cents in the same period last year. Revenue climbed 15 percent.

Select Comfort Corp. (SCSS: chart), a retailer of air beds and sleep-related products based in Minneapolis, raised its third-quarter earning estimates to 16 to 17 cents a share, compared with earlier projections of 13 to 15 cents. Revenue is seen at $113 million to $116 million, up from $105 million to $109 million. The company will continue to invest in advertising. Full-year earnings are seen at the high end of its projected range of 56 to 63 cents a share.

ICN Pharmaceuticals Inc. (ICN: chart), a pharmaceutical company based in Costa Mesa, California, said it expects to nearly triple its earnings to $1.90 a share by 2008, compared with earnings of 67 cents in 2002, due to cost cuts. The company’s restructuring program is almost complete, after the re-acquisition of Ribapharm. Revenue is expected to increase to $1.5 billion in 2008, from $737 million in 2002.

Wal-Mart Stores Inc. (WMT: chart), the world’s biggest retailer based in Bentonville, Arizona, said it is on track to meet its target for September when same-store sales are expected to grow by three to five percent. So far sales have slowed from their August level. In the past week, highest demand was seen in the following categories: men’s apparel, office supplies, electronics, toys, girls’ apparel and food.

On Monday, Wal-Mart was downgraded to “market perform” from “market outperform” by Sanford C. Bernstein. Target Corp. (TGT: chart), a retailer based in Minneapolis, was also downgraded to “market perform.”

First Cash Financial Services Inc. (FCFS: chart), an operator of pawn stores and provider of financial services based in Arlington, Texas, raised its 2003 outlook on strong performance at new stores. The company expects earnings of $1.38 to $ 1.41 a share, up from a prior forecast of $1.35 to $1.38, and 24 percent ahead of the year-earlier results. Shares surged eight percent to the 52-week high level of $22.35 on Monday.

BlackRock Inc. (BLK: chart), an investment management company based in New York, said it expects third-quarter earnings to meet the current analyst consensus estimated for a profit of 60 cents a share. For the full year, the company sees earnings of between $2.32 and $2.36 a share. The stock closed up 2.5 percent at $47.26 on Monday.
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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites.
Market data: BATS Exchange. Inc.

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