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Markets & Stocks
Stocks to watch Tuesday
June 4, 2001: 6:17 p.m. ET

Xilinx on track; Furniture Brands warns; Comverse Technology beats estimates
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NEW YORK (CNNfn) - SunTrust Banks fired another shot in its battle for Wachovia after the bell Monday, while golf sportswear company Ashworth and Furniture Brands both issued warnings.

SunTrust Banks (STI: Research, Estimates) proposed amending Wachovia's (WB: Research, Estimates) bylaws to allow shareholders that support its unsolicited $14.7 billion takeover bid to call a special meeting.

Comverse Technology (CMVT: Research, Estimates), which specializes in software and systems for telephone companies, beat first-quarter First Call estimates by a penny, reporting net income of nearly $80 million, or 43 cents per share.

Revenues for the company jumped 40 percent to $365 million, in line with consensus expecations.

In after-hours trading, Comverse shares rose $2.27 to $60.93.

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    Specialty semiconductor maker Xilinx Inc. (XLNX: Research, Estimates)  said its financial outlook for the fourth quarter remains unchanged and that order cancellations and delays have slowed.

    Xilinx said it continues to expect fourth quarter revenues to decline in the range 15 percent to 25 percent sequentially. Order cancellations and delays have slowed considerably while turns orders -- or orders that are received and fulfilled in the same quarter -- improved in May, the company said.

    In after-hours trading, shares of Xilinx rose $2.56 to $44.15.

    Specialty chemicals maker Millennium Chemicals (MCH: Research, Estimates) warned it expected another loss in the second quarter, similar to the loss it recorded in the first quarter, amid weaker demand for titanium dioxide and other products.

    It also said its results would take a knock from low demand for ethylene and polyethylene, both principal products of its Equistar unit. The company had reported a first-quarter loss of 11 cents per share, excluding one-time items.

    Furniture Brands International (FBN: Research, Estimates) warned on results for its upcoming second quarter and announced a merger of two of its operations will result in the closure of three Virginia facilities and the loss of 1,000 jobs.

    The company said it now expects to earn between 25 and 30 cents per share in the second quarter. Analysts surveyed by First Call had expected earnings of 36 cents per share.

    European drug company Aventis SA (AVE: Research, Estimates) said U.S. regulators tentatively approved its experimental antibiotic Ketek for three types of infections, but also declined to give the product the go-ahead for use against tonsillitis and sore throat.

    Gold sportswear company Ashworth (ASHW: Research, Estimates) met analysts estimates, reporting a second-quarter net income of 4 million, or 30 cents per share, with revenues of $46.9 million. But the company warned of tough times in the second half of fiscal 2001.

    Ashworth said it now expects mid-single digit growth for the full year, with full-year earnings of 40-to-43 cents per share. Analysts surveyed by First Call were expecting the company to earn 61 cents per share. The revision includes 5 cents per share of expenses related to a strategic alliance with Callaway Golf.

    The stock dropped $1.43 to $6.67 in after-hours trading. graphic


    -- from staff and wire reports

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