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Stocks to watch Wednesday
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December 26, 2000: 6:15 p.m. ET
Slowing economy spurs warnings from Network Associates, Excelon, Regis
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NEW YORK (CNNfn) - After the closing bell Tuesday, Internet security provider Network Associates, B2B software maker Excelon and hair salon operator Regis warned of lower than expected results.
Also on Tuesday, handheld computer maker Handspring said it will acquire privately-held Bluelark Systems and retailer Bradlees filed for bankruptcy protection.
In economic news Wednesday, the government will issue a report on the index of leading economic indicators for November. The index is expected to fall 0.2 percent for the month.
Network Associates
Network Associates Inc., the computer security service provider best known for its McAfee anti-virus software, said it expects to record a fourth-quarter loss of between $130 million to $140 million because of a backlog in sales inventories.
Network Associates (NETA: Research, Estimates) said revenue for the quarter ending Dec. 31would be between $55 million to $65 million because of decisions by key distributors to "dramatically" cut inventory levels due to concern over a broader economic slowdown.
Because of that slowdown and the unpredictability of its distribution channel, the Santa Clara, Calif. company will shift to recognizing revenue on a sell-through basis, accept distributor returns on software and will leave about $10 million of inventory in its sales channel, the company said.
Analysts on average had expected Network Associates to post a fourth quarter profit of 31 cents a share, according to First Call/Thomson Financial.
In separate news, the company also announced a number of senior management changes, naming Edwin Harper, a company director, chairman, and announcing the resignation of Peter Watkins as president and Prabhat Goyal as chief financial officer.
Excelon
Business-to-business software maker eXcelon Corp. (EXLN: Research, Estimates) trimmed its fourth-quarter revenues and earnings estimates, citing a weak global economy and reduced spending by telecommunications and dot-com companies.
The Burlington, Mass. company said revenues for the quarter ending Dec. 31 are now expected in the range of $14.5 million and $15.5 million, while losses will be 23 cents and 26 cents a diluted share.
A survey of analysts estimated fourth-quarter losses of 4 cents a share, according to First Call/Thomson Financial.
"Our lower-than-expected revenue for (the fourth quarter) appears to be influenced by the current weakness in the worldwide economy, which has resulted in reduced capital spending by telecommunications and dot-com companies," Bob Goldman, eXcelon's chairman and chief executive, said in a statement.
Regis
Regis Corp. (RGIS: Research, Estimates) the world's largest owner and operator of hair and retail product salons, said it expects fiscal second-quarter earnings to be moderately below those in the year-earlier period, as inclement weather conditions hurt results.
The Minneapolis-based company said it expects earnings to be moderately below 33 cents a share, the amount it earned in the same period last year.
Wall Street analysts had on average expected the company to earn 36 cents a share, according to First Call/Thomson Financial, which tracks earnings data.
Shares of Regis closed down 19 cents, or 1.33 percent, at $13.93 Tuesday on Nasdaq.
- from staff and wire reports 
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