Morning Movers 10/06: FONR, ICTG, PEDH, AVCT, SRDX, NTRI Higher; VRNMD, MNKD, ARP, PSTI, EXTR, STJ Lower

October 6, 2009 10:36 AM EDT

FONAR Corporation (NASDAQ: FONR) 92% HIGHER; reported FY09 EPS of $0.21, compared to a loss of $2.76 in the same quarter last year. Revenue for the quarter was $39.7 million, versus $35.6 million in FY08.

ICT Group (Nasdaq: ICTG) 41.8% HIGHER; Sykes Enterprises Incorporated (Nasdaq: SYKE) and ICT have entered into an agreement where Sykes will acquire ICTG. Sykes will pay $15.38 per share of ICTG common, fully diluted, for a total of $263 million. The conversion will be one share of ICTG converted into $7.69 cash and Sykes stock worth $7.69. $15.38 represents a 46% over the closing price of ICTG as of October 5th, 2009.

Peoples Educational Holdings, Inc. (NASDAQ: PEDH) 27.3% HIGHER; reports Q1 EPS of $0.42, compared to $0.34 in the same quarter last year. Revenue for the quarter was $14.7 million, versus $15.997 million in Q108. Reaffirms its previously issued FY09 guidance.

Verenium Corporation (Nasdaq: VRNM) (Nasdaq: VRNMD) 25% LOWER; priced an underwritten public offering of 2,250,000 shares of its common stock and warrants to purchase an additional 900,000 shares of common stock at a price to the public of $6.00 per unit.

MannKind Corp. (Nasdaq: MNKD) 23.2% LOWER; In an 8-k filing with the SEC, MannKind said it won't enter a marketing partnership for AFRESA before the end of 2009. Click here to see the full reprot.

Avocent Corporation (NASDAQ: AVCT) 21% HIGHER; Emerson (NYSE: EMR) agreed to acquire Avocent in an all-cash tender offer of $25 per share, or approximately $1.2 billion.

SurModics, Inc. (Nasdaq: SRDX) 20.9% HIGHER; entered into an agreement where Roche and Genetech obtained the rights to SurModics proprietary biodegradable microparticle drug delivery system to develop and commericalize a sustained drug delivery formulation of Lucentis (ranibizumab injection). The contract also provide Genetech and Roche the opportunity to develop additional compounds for the treatment of ophthalmic diseases. Surmodic will receive $3.5 million up front, with the possibility to receive up to $200 million upon the successful development and commercialization of multiple products. Surmodic will also receive undisclosed royalties on product sales.

Nutrisystem, Inc. (Nasdaq: NTRI) 20.9% HIGHER; has aligned with Walmart (NYSE: WMT) to offer customers the convenience of a Nutrisystem 14-Day Starter Program for the first time in the retail channel. "Our alliance with Walmart is an extension of our goal to consistently offer consumers a convenient, affordable and effective weight loss option," said Will Auchincloss, Senior Vice President of Business Development at Nutrisystem. "Walmart provides us with a new and valuable distribution channel to broaden our customer base and build awareness of our product at the retail level."

American Reprographics Company (NYSE: ARP) 19.1% LOWER; today announced the successful completion of an amendment to its senior secured credit agreement on October 5, 2009. The company lowers its FY09 EPS guidance from $0.50-$0.70 to $0.27-$0.33, excluding one-time charges of $0.05 to $0.07 for charges related to the amendment of the senior secured credit agreement as noted above. The Street is currently looking for FY09 EPS of $0.54. Based on preliminary revenue results from the third quarter, the Company anticipates sales to be weaker in the second half of 2009. Management attributed the projected loss of revenue to the lack of commercial construction activity across the nation as credit markets remain tight and financing for new construction remains severely restrained. Net revenue for Q3 is currently expected to be in the range of $117-$119 million. The analyst consensus is $123.71 million.

ACADIA Pharmaceuticals (Nasdaq: ACAD) 14.4% HIGHER; updated its Phase III program for pimavanserin. This drug is being collaborated with Bioval Lobratories International SRL, a subsidiary of Bioval Corporation. ACADIA and Bioval have remained committed to the successful development of pimavanserin through the Phase III PDP trial, quotes Bill Wells, Bioval's CEO, "We remain enthusiastic about pimavanserin's prospects in a number of specialty CNS indications, including schizophrenia where existing data for the molecule as co-therapy are compelling."

Magnetek, Inc. (NYSE: MAG) 14.4% HIGHER; received a follow-on production order for wind power inverters valued at $11 million.

Pluristem Therapeutics Inc.. (Nasdaq: PSTI) 13.6% LOWER; entered into definitive agreements with selected institutional investors to sell common stock and warrants for aggregate gross proceeds of approximately $3.0 million, before deducting placement agent fees and estimated offering expenses. The offering includes 2,702,822 shares of common stock and warrants to purchase 1,081,129 shares of common stock. The price per share of Common Stock is $1.12, and the exercise price of the warrants is $1.60.

Extreme Networks, Inc. (Nasdaq: EXTR) 12.9% LOWER; sees first quarter net revenue of approximately $66 million, which is below the consensus of $80.4 million. "Our supply chain was constrained during the quarter, impacting our ability to deliver product, close transactions and recognize revenue. Our North America business was particularly soft, as some deals were lost and others were delayed beyond the end of the quarter," said Mark Canepa, president and CEO of Extreme Networks.

St. Jude Medical, Inc. (NYSE: STJ) 11.5% LOWER; sees lower than expected Q3 sales at about $1.159 billion, which compares to the Street estimate of $1.19 billion. As a result of lower than expected sales, the Company lowers its Q3 non-GAAP EPS guidance from $0.61-$0.63 to $0.57-$0.58, versus the consensus of $0.62. In addition, the Company will record charges in the range of $50 to $55 million in the third quarter, or $0.09 to $0.10 per share. These charges primarily reflect severance costs associated with personnel reductions related to our continuing efforts to improve sales and sales support productivity as well as to streamline manufacturing operations. The charge also includes a write-down of certain strategic cost investments.

Cirrus Logic (Nasdaq: CRUS) 11% HIGHER; raises its Q2 sales guidance from $48-$52 million to $55.7 million, which compares to the Street estimate of $49.84 million. Cirrus sees Q2 gross margin at the upper range of 50-52%.

Rewards Network Inc. (NASDAQ: DINE) 10% HIGHER; declared a special cash dividend of $2.00 per share of common stock, payable on October 22, 2009 to stockholders of record at the close of business on October 15, 2009.

Harris & Harris Group, Inc. (Nasdaq: TINY) 9.9% LOWER; announced today that it has priced a follow-on public offering of 4,250,000 shares of its common stock at a price of $4.75 per share. We expect net proceeds, after underwriting discounts and estimated offering expenses payable by us, of approximately $18,648,750 ($21,495,188 if the over-allotment option is exercised in full by the underwriter).

ARRIS Group (Nasdaq: ARRS) 9.6% LOWER; Jefferies & Co downgrades the stock from Hold to Underperform. Price target lowered to $9.50 from $12.

Robbins & Myers Inc. (NYSE: RBN) 9% LOWER; reports Q4 EPS of $0.39, 19 cents better than the analyst estimate of $0.20. Revenue for the quarter was $155 million, which compares to the estimate of $136.80 million. Sees Q1 adj-EPS of $0.05-$0.15, versus the consensus of $0.22. Sees FY10 adj-EPS of $0.80-$1.00, which compares to the Street estimate of $1.19.

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