RealTime IT News

Same Old Story: Cisco Beats By A Penny

Cisco Systems reported earnings after the bell on Tuesday that beat estimates by a penny. The company's revenues blew estimates out of the water, and the stock rose after hours.

Stocks were mixed ahead of the earnings report. The ISDEX slipped 2 to 751, and the Nasdaq fell 14 to 3848. The S&P 500 added 3 to 1482, and the Dow rose 109 to 10,976, a critical level, on strength in cyclical issues. Volume rose to 990 million shares on the NYSE and 1.45 billion on the Nasdaq. Advancers led 15 to 12 on the NYSE, but decliners led 22 to 18 on the Nasdaq. Traders were cheered by a better-than-expected increase in second-quarter productivity. Applied Materials will report earnings tomorrow and Dell Computer on Thursday. For earnings reports, visit our earnings calendar and reported earnings.

After the bell, Cisco beat estimates by a penny with fourth-quarter earnings of 16 cents a share. The company's revenues rose 60% to 5.72 billion, above even the most optimistic estimates of $5.6 billion. Cisco ended the day down 55/64 to 65 3/8, but rose to 68 in after-hours trading. The stock has resistance just under $70.

DSL stocks were mixed during the day on news that NorthPoint will merge its DSL business with Verizon . NPNT shareholders will receive $2.50 per share in cash and one share in the new NorthPoint. Verizon will own a 55% stake in the new company. NorthPoint slipped 9/16 to 14 7/16 on the news after trading as high as 19. Copper Mountain , up 8 1/2 to 78 3/4, and Rhythms , up 1 3/4 to 14, rose in sympathy, but Covad slipped 5/8 to 17 9/16.

PSINet gained 1 7/16 to 19 3/4 after reporting a second-quarter loss of $1.12 a share, 23 cents better than estimates. CAIS Internet gained 5/32 to 9 1/2 after beating estimates by 2 cents with a $1.17 loss.

But HealthStream fell 3/4 to 2 on news of growing losses. For more on HealthStream click here.

Ameritrade slipped 1/16 to 13 after CEO Tom Lewis resigned for personal reasons. Chairman and co-CEO Joe Ricketts will fill in on an interim basis.

The IPO of AOL Latin America priced at 8, opened at 7 15/16, and rose to 8 15/32 after trading as high as 9 3/4. For more on the stock, which combines the volatility of an Internet stock with the uncertainty of emerging markets, click here.

DoubleClick lost 3 3/4 to 34 7/8 on news that the company had restructured its agreement with AltaVista.

TheStreet.com gained 1 3/32 to 6 1/8 on news of a $7.5 million investment from Paul Allen's Vulcan Ventures. Also, the company licensed Go2Net's proprietary message board platform. Vulcan took a 5% stake in TSCM, and Vulcan and GNET each took an option to buy an additional 7.45% of TSCM stock within six months at a "substantial premium to yesterday's closing price."

BroadVision , off 2 5/16 to 33 1/8, formed an alliance with Commerce One , up 13/16 to 51 3/8. Commerce One traded above its previous breakout point of 52-53 and rose as high as 55, a 50% retracement of its recent decline from 70 to 40, before fading. Ariba rose 7 1/4 to 142 1/4, breaking above 135 resistance. But i2 fell 2 1/2 to 140 7/8 after turning back at 148 1/2 at what appears to be the upper boundary of a rising wedge.

Juniper Networks gained 6 1/2 to 158 3/4 o