NEW YORK (CNNfn) - Qualcomm Inc. sparked investors' interest after the markets closed Tuesday, beating Wall Street's quarterly earnings expectations and announcing a four-for-one stock split. Meanwhile, R.J. Reynolds Tobacco Holdings Inc. went in another direction, announcing it would repurchase a portion of its stock.
Qualcomm Inc.
Qualcomm Inc. (QCOM) beat Wall Street's earnings expectations for its fiscal fourth-quarter Tuesday and declared a four-for-one stock split, causing its share price to surge in after-hours trading.
The San Diego-based wireless communications company said it earned 91 cents per share on an operating basis before non-recurring charges for the quarter ended Sept. 26., higher than the 88 cents per share consensus analyst estimate compiled by First Call Corp.
Including charges, Qualcomm posted net income of $136 million, or 73 cents per diluted share, during the quarter, up from the $39.9 million, or 27 cents per diluted share, it earned a year earlier. Revenue for the quarter increased 14 percent to $1.1 billion as the company posted record shipments in all its businesses.
For the full fiscal year, Qualcomm earned $420 million, or $2.46 per share, before charges. After charges, the company recorded net income of $200.9 million, or $1.24 per diluted share, up from the $108.5 million, or 73 cents per share it earned a year earlier.
Revenue for the year reached a record $3.9 billion, up 18 percent, despite the sale of the company's Code Division Multiple Access wireless infrastructure to Ericsson earlier this year.
Separately, Qualcomm said it planned to initiate a four-for-one stock split, increasing the company's authorized common stock to three billion shares.
The announcements pushed Qualcomm's stock up to 234-5/8 in after-hours trading, more than 5 percent above its closing price of 224 5/8.
Donna Karan International Inc.
Fashion design house Donna Karan International Inc. (DK) said Tuesday it planned to reduce its workforce by 8 percent and consolidate certain divisions to help reduce costs.
The New York-based designer of Donna Karan New York and DKNY brand products said it would eliminate roughly 175 positions, close seven outlet stores and consolidate its two women's divisions into one business unit as part of the restructuring.
The company also plans to take a $11 million restructuring charge during the fourth quarter of 1999, but Donna Karan Chief Executive Officer John Idol said the company was "on track" to achieve its 1999 financial targets.
Company officials expect the initiatives to result in annual savings of approximately $6 million.
R.J. Reynolds Tobacco Holdings Inc.
Hoping to bid up the value of struggling shares, R.J. Reynolds Tobacco Holdings Inc. (RJR) intends to repurchase up to $125 million worth of its common stock.
The repurchase plan, which goes into effect immediately, is designed to build long-term shareholder value, said Andrew J. Schindler, the company's chairman and chief executive officer, in a statement.
R.J. Reynolds Tobacco Holdings, the parent company of R.J. Reynolds Tobacco Co., has seen its stock lose roughly one-third of its value since mid-September because of liability concerns from several tobacco-related cases. The stock closed at 19-7/8, down 5/8, in trading Tuesday.
Dii Group Inc.
Dii Group Inc. (DIIG) struck a deal to acquire the manufacturing assets of Hewlett-Packard's Storage Systems Division Tuesday.
Terms of the deal were not disclosed, but the agreement also includes a long-term supply agreement for Dii to supply tape and optical libraries to HP.
Dii officials said that deal is expected to boost revenue by nearly $200 million next year and ramp up to more than $500 million within five years. The company hopes to complete the acquisition by the end of January.
Gil Merme, general manager of the Storage Systems Division for Hewlett-Packard Co. (HWP) said the technology company decided to divest the operation to "focus on its core product development and marketing competencies."
Dii expects to finance the acquisition through its recent secondary stock offering. Company officials said that including the new product agreement, it expects to generate more than $2 billion in revenue during fiscal 2000 and earnings of at least $2.30 per share.
Haggar Corp.
Haggar Corp. (HGGR) posted net income of $5.19 million, or 72 cents per share, for the fiscal fourth-quarter quarter ended Sept. 30, up from the $4.49 million, or 53 cents per share, it earned during the same period last year.
The Dallas-based maker of men's and women's apparel also said sales the quarter increased 6 percent to $122.1 million from $115.1 million a year earlier.
For the full fiscal year, Haggar recorded net income of $9.40 million, or $1.26 per share, compared to the $8.02 million, or 94 cents per share it earned a year earlier.
Airline price wars
Two major airlines announced price reductions after the bell Tuesday, including additional discounts for those that make their reservations online.
US Airways Group (U) said it has reduced leisure ticket prices on most of its routes for the fall and winter season. Reduced prices include tickets to such tropical locations as Bermuda, Cancun and St. Thomas and overseas destinations such locations as Paris, Rome and Frankfurt.
The company said it will give Internet users who purchase their tickets on US Airways by Nov. 12 an additional 5 percent off.
Meanwhile, Delta Air Lines (DAL) said it too was offering discounts of up to 5 percent for 14-day advance purchases on its Web site for travel within the country's 48 contiguous states.
Wednesday's outlook
New economic data will be high on investors' minds Wednesday as several important figures are released.
The Commerce Department is scheduled to release September's factory order growth at 10 a.m. Factory orders rose faster than expected in August, climbing 1.3 percent, but economists polled by Reuters expect the September figure to decline by 0.5 percent.
Also due out at 10 a.m. is the Conference Board's Index of Leading Indicators for September, which is expected to remain unchanged after inching forward 0.1 percent in August.
Investors will also be paying close attention to another round of earnings releases. Wednesday's participants will include clothier Tommy Hilfiger Corp. (TOM), restaurant chain Uno Restaurant Corp. (UNO) and struggling outpatient surgery and rehabilitation services company Healthsouth Corp. (HRC).
Check S&P futures trading on Globex
On the initial public offering front, investors will get their first crack at purchasing Be Free shares.
The provider of online marketing services for e-commerce merchants and Internet portals priced 5.6 million shares at $12 per share after the markets closed - well below its expected range of $15 to $17 per share.
The company will trade under the symbol BFRE.
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