Early Movers 2/29: Fremont General (FMT) Lower on More Write-Downs; 3Com (COMS) Higher On Possible Resubmitted Deal

February 29, 2008 10:08 AM EST

StreetInsider.com Early Movers:

Fremont General Corporation (NYSE: FMT) 60% LOWER; in connection with ongoing reviews and the Company's preparation of its 2007 consolidated financial statements, which have not yet been completed, the Bank may need to record additional asset write-downs and reserves, which could result in further losses or, alternatively, will require the Bank to adjust downward its regulatory capital. In either case, such potential adjustments will further erode the Bank's total equity capital of $448.6 million that was reported in the Bank's Call Report publicly filed with the FDIC on January 30, 2008 for the year ended December 31, 2007. In addition, if the possible adjustments are ultimately recorded by the Bank, such adjustments could have an adverse effect on the Company's financial condition, results of operations and business.

3Com Corporation (NASDAQ: COMS) 21% HIGHER; reports from the Wall Street Journal, Bain Capital and China's Huawei plan to resubmit its application for US approval for the acquisition 3Com Corporation (NASDAQ: COMS). Last week the application was pulled after on concerns CFIUS would reject it. The new plan deal would be structured to limit Huawei's acces to some core US-related network products.

Sapient (Nasdaq: SAPE) 13.8% HIGHER; reports Q4 EPS of $0.07 (non-GAAP EPS from continuing operations was $0.12) vs. the analyst estimate of $0.05. Revenues for the quarter were $160.7 million, versus the consensus of $146.74 million.

Assured Guaranty Ltd. (NYSE: AGO) 12% HIGHER; is higher this AM after the company signed an agreement for WL Ross & Co. LLC to purchase $250 million of common shares of Assured and to provide a commitment to purchase up to $750 million of additional common shares of Assured at the option of the Company.

UTStarcom (Nasdaq: UTSI) 9.9% HIGHER; reports a Q4 loss of $0.20, which may not be comparable to the analyst estimate of ($0.43). Revenues for the quarter were $806 million, versus the consensus of $640.63 million. Sees Q1 revenues between $500-$520 million vs. consensus of $563.52 million.

McAfee (NYSE: MFE) 9.5% HIGHER; moving despite a lack of news.

Omnivision Technologies (Nasdaq: OVTI) 8.3% HIGHER; reports Q3 non-GAAP EPS of $0.55, 9 cents better than the analyst estimate of $0.46. Revenues for the quarter were $224.9 million, versus the consensus of $225.10 million.

Sonus Networks (Nasdaq: SONS) 8% LOWER; reports preliminary Q4 revenues which are expected to be $97.1 million, versus the consensus of $97.33 million. The Company is not providing detailed GAAP or non-GAAP financial results for the quarter or full year at this time. The Company said, "We expect to provide full financial results and file our Form 10-K within the 15 day period permitted under our Form 12b-25 filing," said Richard Gaynor, chief financial officer. "While this is an unfortunate occurrence, the delay should not overshadow the many important advances Sonus made during 2007."

Hansen Natural (Nasdaq: HANS) 7.1% LOWER; reports Q4 EPS of $0.45, 7 cents better than the analyst estimate of $0.38. Revenues for the quarter were $246.6 million, versus the consensus of $212.72 million.

Deckers Outdoor (Nasdaq: DECK) 7% LOWER; reports Q4 EPS of $2.69, 28 cents better than the analyst estimate of $2.41. Revenues for the quarter were $194.2 million, versus the consensus of $183.99 million. Sees 2008 revenues growth of 25% and EPS growth of 20%

MF Global Ltd (NYSE: MF) 7% LOWER; Lehman and UBS downgrade

RH Donnelley Corp. (NYSE: RHD) 6% LOWER; Bear Stearns and Deutsche Bank downgrade

Dean Foods Company (NYSE: DF) 6% LOWER; agreed to sell approximately 18.7 million shares of common stock in a registered public offering. Reiterating its previously issued guidance of between $0.15 and $0.20 per share for the first quarter and at least $1.20 per share for the full year 2008. J.P. Morgan removes Dean Foods from the 'Focus List'.

Gap Inc. (NYSE: GPS) 5% reports Q4 EPS of $0.35, in-line with the analyst estimate of $0.35. Revenues for the quarter were $4.7 billion, versus the consensus of $4.70 billion. Sees FY08 EPS of $1.20-$1.27, versus the consensus of $1.10. Announces a new $1 billion share repurchase program. Also, plans to boost its annual dividend from $0.32 to $0.34 during 2008.

Internap (Nasdaq: INAP) 3% HIGHER; reports Q4 EPS of $0.13, versus the analyst estimate of $0.04. Revenues for the quarter were $63 million, versus the consensus of $64.33 million. Reaffirms its previously issued FY08 guidance.

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