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CNNfn after the bell
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January 14, 1999: 6:17 p.m. ET
Marketwatch.com IPO price upped; Inktomi posts smaller-than-expected loss
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NEW YORK (CNNfn) - Earnings dominated after-hours news Thursday, with many technology companies reporting profits in line with analysts' expectations.
Inktomi Corp. (INKT) exceeded Wall Street estimates, posting a smaller-than-expected loss of $5.78 million, or 24 cents per share, on revenue of $10.7 million in the first quarter. Analysts surveyed by First Call had forecast a loss of 29 cents per share. For the same period last year, the Internet software firm posted a loss of $4.4 million, or 25 cents per share, on revenue of $2.4 million.
Biogen Inc. (BGEN) posted a fourth-quarter profit in line with Wall Street estimates. The biotech firm earned $41.9 million, or 54 cents per diluted share, on revenue of $168 million. For the comparable period last year, net income totaled $31.7 million, or 42 cents per diluted share, on revenue of $124 million.
For the year, the company posted a profit of $138 million, or $1.80 per share, compared to $89 million, or $1.17 per share in 1997. Revenue in 1998 was $557.5 million, compared to $411 million the previous year.
Fourth-quarter results for Dallas Semiconductor Corp. (DS) also were right on the mark. The chip maker posted a profit of $14.5 million, or 48 cents per share, down from $17.9 million, or 60 cents per share, for the same period in 1997. Fourth-quarter sales fell 11 percent to $85 million from $95.4 million.
For the year, the company earned $55.4 million, or $1.85 a share, on sales of $342.6 million. In 1997, net income totaled $64.6 million, $2.19 per share, on sales of $368.2 million.
Rambus Inc. (RMBS) also reported first-quarter earnings in line with analysts' expectations, but warned of weaker times ahead. The technology company posted a profit of $2 million, or 8 cents per share, compared with $1.7 million, or 6 cents per share last year. Revenue jumped to $10.5 million from $9.4 million for the same period last year. Rambus said earnings in the next two or three quarters would be "no better than flat" compared to first-quarter results, citing a seasonal decline in demand and additional costs related to the ramp-up of the Rambus IC later this year.
In non-earnings news, Franklin Resources Inc. (BEN) said it will take a one-time restructuring charge of approximately $58 million, about 80 percent of which will be taken in the first fiscal quarter. The charge is part of a consolidation effort that is expected to result in annual operating savings of $100 million. Before the charge, Franklin expects first fiscal quarter earnings to fall in the range of 39 cents to 42 cents per share.
Silicon Graphics Inc. (SGI) announced it will reduce its stake in MIPS Technologies Inc. (MIPS) in a multistep divestiture that will occur through secondary market sales and other transactions. The move by Silicon Graphics, which owns approximately 85 percent of MIPS's common stock, will enable MIPS to achieve full business independence in a way that is both tax and market efficient for Silicon Graphics.
Finally, in response to strong demand, BT Alex Brown raised the initial public offering price for Marketwatch.com's 2.75 million shares to $17. A previous increase had raised the price range to $14 to $16 a share from the original range of $10 to $12. Marketwatch.com, a joint venture financial Web site between Data Broadcasting Corp. (DBCC) and CBS Corp. (CBS), is expected to start trading Friday under the symbol "MKTW" on the Nasdaq. 
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