SAP AG (NYSE:SAP) said Q4 software revenue rose 7% to EUR 1.26 billion versus a consensus of EUR 1.35 billion. The company sees FY06 software revenue of EUR 3.1 billion, up 11% YoY. The total revenue for Q4 is expected to be EUR 2.95 billion, up 7% YoY, with a total revenue for 2006 to be EUR 9.43 billion, up 11% YoY. Meanwhile, the company sees 2006 Adjusted EPS of a least EUR 1.59.

Digirad Corporation (NDAQ:DRAD) anticipates consolidated revenues at the high end of the previously announced range of $70.7 million to $71.5 million, consisting of DIS revenue between $49.1 million and $49.5 million and product revenue between $21.6 million and $22.0 million. The current consensus stands at $71.2 million.

BorgWarner Inc. (NYSE:BWA) provided 2007 earnings guidance of $4.60 to $4.80 per diluted share on a US GAAP basis. Earnings growth is expected to be in line with BorgWarner historical growth rates of greater than 10%. The current FY07 EPS consensus stands at $4.58.

JDA Software Group (NDAQ:JDAS) anticipates total Q4 revenues of approximately $89 million, versus the consensus of $93.86 million.

Zions Bancorporation (NDAQ:ZION) expects fully diluted earnings per common share for the quarter ended December 31, 2006 of approximately $1.31 to $1.33. The current consensus stands at $1.44.

Amerigon Incorporated (NDAQ:ARGN) expects to report revenue of approximately $50 million for the year ended December 31, 2006, up more than 40% YoY, with strong YoY growth in profitability. The current FY revenue consensus sits at $48.62 million.

Amdocs Limited (NYSE:DOX) said it expects to report results in-line with guidance for its fiscal Q1, which ended December 31, 2006. The company now expects that revenue in FY07 will be between $2.83 to $2.91 billion, slightly lower than the company's previous guidance. The consensus stands at $2.93 billion.

RC2 Corporation (NDAQ:RCRC) announced lower than expected preliminary net sales. Net sales from continuing operations for the Q4 2006 were flat to slightly down versus the prior year fourth quarter net sales from continuing operations of approximately $154 million, which compares to the consensus of $169.3 million. Current estimates of 2006 diluted earnings per share from continuing operations are now expected to be below the company's previously announced range of $2.52 to $2.62.

Murphy Oil Corporation (NYSE:MUR) expects income for Q4 2006 to be between $0.40 to $0.45 per diluted share. The current consensus stands at $0.65.

Restoration Hardware, Inc. (NDAQ:RSTO) said comparable store sales for the nine-week holiday period increased more than ten percent.  The company reiterated its guidance for diluted earnings per share toward the lower end of the previous range of between $0.34 and $0.44 per share against last year's loss per share of $0.52. The consensus is $0.41.

C-COR Incorporated (NDAQ:CCBL) anticipates its second quarter revenue and net earnings per share will exceed the top end of guidance provided in its October 26, 2006 news release on its financial results for the first quarter of fiscal year 2007. C-COR also expects to report a positive book-to-bill ratio for the second quarter of fiscal year 2007.

SupportSoft, Inc. (NDAQ:SPRT) expects a Q4 revenue of approximately $14 million, ahead of the $12 million to $13 million range previously forecasted by the company. The consensus is $12.57 million.

Infosys (NDAQ:INFY) reports Q3 earnings of $0.39 per share, two cents better than estimates. Revenues came in at $821 million versus the consensus of $797.3 million. The Q4 EPS is expected to be $0.40, versus the consensus of $0.39, with Q4 revenues of $859-$861 million versus the consensus of $837 million.

Foreign banking stocks moved sharply to the upside today after the Bank of England announced rate hikes that took investors by surprise. While many economists expected the BOE to keep rates steady until February, the Bank of England stated that it needed to raise rates in order to keep inflation at its target 2%. Stocks affected by this announcement included Deutsche Bank (DB) up 0.8%, Credit Suisse Group (CS) up 0.5%, and Banco Bilbao Vizcaya Argentaria (BBV) up 1.1%. Meanwhile, the Bank of New York Composite ADR Index moved up 0.9%.

Equity Office Properties (NYSE:EOP) could receive a higher bid from Cerberus Capital Management, according to reports from the Financial Times. Just when we thought that the company's $36 billion deal with Blackstone was written in stone, there is now speculation that Barry Sternlicht of Starwood Capital Group Global LLC, Neil Bluhm of Walton Street Capital, and Cerberus Capital Management could top their offer. While it is highly unusual for private equity firms to compete over such a takeover, the stakes in this deal are high with Class A properties expected to perform extremely well in the future. EOP's strong existing capacity, along with new regulations making it more difficult to build new capacity, make this deal important for players in the commercial real estate market.

Despite a $200 million termination fee and Blackstone matching rights, shareholders are already anticipating higher bids as its shares are trading at $49.30 - above Blackstone's $48.50 buyout price. Regardless, this is definitely a stock to keep an eye on as this situation unfolds.

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Parlux Fragrances Inc.'s (NDAQ:PARL) recent share repurchase is drawing criticism from several large investors, including Glenn Nussdorf. The company authorized stock repurchases of up to 10 million shares of the Company's common stock - an extraordinarily large stock repurchase, covering almost 55% of the company's 18,430,000 outstanding shares. But why complain about a stock repurchase of any kind, especially a large one? Well, according to Nussdorf's Schedule 13D/A filing today:

"In light of the fact that my consent solicitation will be commencing very shortly, that the record date is one week from today, and that the Board has just authorized massive stock repurchases, I am understandably concerned that the stock repurchases may be made for the purpose of, and in a manner designed to, entrench the Company's current management and Board of Directors. I believe that any use of corporate funds for such purpose would constitute an unconscionable breach of fiduciary duty and misuse of corporate assets and, in such event, I intend to hold you responsible. I demand that the Company make immediate, full and clear public disclosure of the purposes of the massive stock repurchase authorization and how it is intended that any shares repurchased by the Company, whether prior to, on, or after the record date, will be treated for purposes of my consent solicitation."

The conflict between Nussdorf and the board began in December when Nussdorf disclosed his concerns about the company and threatened a proxy battle in a Schedule 13D/A filing on December 22nd with the SEC:

"As the beneficial owner of a substantial percentage of the outstanding shares of Parlux, I believe that much can be done to increase shareholder value and that it is time for immediate change at both the Board and management levels. The decline in the Company's share price from a high closing price of $18.96 earlier this year (after adjusting for a 2-for-1 split in June 2006) to the current $6.26 level (a decrease in shareholder value of 67%), the Company's recent disclosure of decreased sales and earnings for the quarter ended September 30, 2006, and the allegations in the recently amended class action lawsuit that the Company improperly recognized revenues on sales to related parties, have led me to conclude that the Board of Directors is failing to act in the best interests of the Company's shareholders and is not exercising appropriate oversight of management. I am convinced that a continuation of the status quo risks a further destruction of shareholder value and, accordingly, I intend to protect the value of my significant investment in the Company through a consent solicitation to replace members of the Board of Directors.

As I have publicly disclosed in my Schedule 13D filing, I am exploring the possibility of making an acquisition proposal to acquire the Company in a business combination transaction. While I have not made a decision at this time whether to pursue such a proposal, I strongly urge the Board not to take any action (such as the previously announced and subsequently abandoned sale of the Perry Ellis brand) which would materially modify or impact the Company's business, products or assets and could adversely effect the Company's value. In addition, the consent solicitation will present Parlux shareholders with a unique opportunity to express their views on the future direction of the Company."

Clearly, Nussdorf has a good reason for concern. Parlux's past failures to act in the best interest of shareholders, or even grant board seats to Nussdorf, illustrate their lack of conern for shareholders. If Nussdorf is successful in garnering significant shareholder approval in his proxy contest, there is a good possibility that he could take further actions to benefit shareholders. This makes PARL a stock worth watching over the next few months.

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Friendly Ice Cream Corp's (NYSE:FRN) battle with The Lion Fund escalated recently, after yet another series of letters were exchanged. The two have been in conflict for some time now, with The Lion Fund attempting to obtain board seats after expressing concern with the company's "classified board" and failure to implement strategies to enhace the company's share price.

In the company's recent letter, they noted:

"Friendly Ice Cream Corporation (AMEX: FRN) today announced that Sardar Biglari rejected the Company's offer of two seats on its Board of Directors for Mr. Biglari and his colleague, Phillip Cooley. The Company's offer contained only one condition - that they agree not to solicit any proxies for additional board seats or other matters not recommended by the Board. The Board's offer was intended to respond favorably to a significant shareholder's request for a voice on the Board, while avoiding the unnecessary expense and distraction of a proxy contest.

In rejecting the Company's offer, Mr. Biglari increased his demands to include the submission of a proposal to Friendly's shareholders to remove the Company's three classes of directors. Donald N. Smith, Chairman of the Board, said, '(W)e gave Mr. Biglari what he asked for. Now he wants more. What does he really want? His demands, together with his actions at the publicly traded Western Sizzlin Corporation ("WSC"), raise concerns regarding his true intentions. It appears that he isn't interested in just a voice on the Board - he wants to control the Board.'

In a letter to shareholders dated January 2, 2007, Smith stated, '(t)he results of WSC suggest that it would not be in the best interests of our shareholders to allow Mr. Biglari to control the Friendly's Board. After Mr. Biglari took control of WSC, rather than reinvesting in the restaurant business of WSC, Mr. Biglari used WSC's surplus cash, its bank credit facilities and a brokerage margin account to purchase Friendly's stock. It appears that Mr. Biglari is leveraging the credit of WSC and his hedge fund to purchase our stock.'

Smith added, 'Under Mr. Biglari's leadership, WSC's operating cash has dwindled, year to year earnings from operations have declined, franchised restaurants continue to be closed, and its stock price has declined significantly. While he continues to offer criticisms of our company, he hasn't offered any plan, vision or strategy for increasing Friendly's shareholder value. If Mr. Biglari gains control of your Board, he could change the Company's financial agreements to allow him to invest Friendly's cash in other companies, like he has done at WSC. We believe that Mr. Biglari wants to gain control of the Board in order to redirect corporate assets for purposes other than the continued growth of Friendly's. The Friendly's Board will take all actions necessary to prevent this from happening. Friendly's is a restaurant company not a hedge fund or investment company.'" (Read More)

Then today, The Lion Fund fired back with their response in their recent Schedule 13D/A filing with the SEC:

"On January 2, 2007, Donald Smith, Chairman of Friendly Ice Cream Corp., issued another letter that we believe was intended to misinform you. I am not surprised: Mr. Smith and the board will take any action necessary that would divert your attention from the company's dismal performance. Mr. Smith, along with the board, has failed to create shareholder value since Friendly's went public a decade ago at $18 per share.

In his letter, Mr. Smith neglects to tell shareholders that we recently proposed just one change to Friendly's corporate governance -- to declassify the staggered board -- but the board rejected our idea of putting the suggestion to shareholder vote; instead it opted to protect its interests, not yours. Shareholders are the true owners of Friendly's; consequently, they should decide whether or not an entrenched board is good policy. Clearly, the board does not want to be held accountable.

We believe the board will continue to make decisions to protect its own best interests at the expense of the shareholders' well-being. The cost of an entrenched board imposes a heavy burden on Friendly's value. Since we disclosed our large ownership in the company, its stock price has risen to a level reflecting the expectation that positive change is in the offing. While we cannot promise future returns, we can guarantee we will do our best to create shareholder value by seeking to institute corporate governance reform, improved operational performance, and improved financial performance -- all revisions which promote the right behavior -- thereby putting the shareholders first.

Furthermore, we are seeking just two board seats to serve the best interests of all shareholders. We don't want unequal footing with other shareholders. Mr. Smith does. For instance, he is permitted to purchase more than 15% of the company without triggering the company's "poison pill" rights plan. We will continue to share with you other decisions made by the board designed to provide immunity not accountability, and in the process to disenfranchise us shareholders.

We lack confidence in the current board but have confidence that you will support our position when we seek your votes to bring much needed independent
thought and demanding, impartial financial discipline." (Read More)

Both of these parties have a point: The company did try to avoid an expensive proxy contest by offering two seats that were rejected by The Lion Fund; however, they failed to address other critical issues, including the "classified board" issue. Even if the hedge fund would have taken two seats on the board, they could have been marginalized by the fact that it was a classified board. Now, the hedge fund will be soliciting proxies in an attempt to take over the company. Whether or not they are successful depends on how shareholders respond to these letters. This is definitely a stock to watch as this situation unfolds.

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Kenexa Corporation (NDAQ:KNXA) said it expects to meet or slightly exceed its previously issued guidance for the quarter ended December 31, 2006, relating to the company's revenues and non-GAAP operating income. Kenexa also announced that it intends to file a prospectus supplement with the SEC relating to an underwritten public offering of 3.75 million shares of its common stock under an effective shelf registration statement.

LeCroy Corporation (NDAQ:LCRY) said for the FY07 Q2, they expect to report revenues of approximately $38 million, versus the consensus of $42.85 million. They will expect orders in the second half of the year to increase by ten to seventeen percent to the range of $80 to $85 million. This should translate into total revenues in the range of $155 to $160 million for full year fiscal 2007.

Ultralife Batteries, Inc. (NDAQ:ULBI) expects to report Q4 revenue of approximately $31 million. These results are in range with the previous guidance, which estimated revenue of approximately $35 million for the fourth quarter. The consensus is $33.8 million.

Guitar Center, Inc. (NDAQ:GTRC) said consolidated net sales for the fourth quarter increased nearly twelve percent to $628.5 million, below the consensus of $643 million. The Company anticipates net income for the fourth quarter will be below its previous guidance range of $34 million to $36 million, or $1.14 to $1.20 per diluted share. The consensus is $1.16.

Perficient, Inc. (NDAQ:PRFT) is raising its revenue guidance for the fourth quarter of 2006. The Company expects its fourth quarter services and software revenue to be in the range of $48.4 million to $49.6 million, versus previous guidance range of $42.4 million to $45.1 million. The consensus is $44.57 million.

Merix Corporation (NDAQ:MERX) announced that Mark Hollinger has stepped down as Chairman and Chief Executive Officer, and will be leaving the Company. The Board has formed a search committee to find a successor. William C. McCormick, the Board's Lead Director, has been named Chairman and Interim Chief Executive Officer to serve while the Company conducts a search for a successor CEO. McCormick has been a director of Merix since 1997.

Sciele Pharma, Inc. (NDAQ:SCRX) raised revenue guidance for full-year 2006 to between $290 million and $292 million from the previously announced range of $287 million to $290 million, and raised the earnings guidance to between $1.18 and $1.20 per share from the previously announced range of $1.16 to $1.19 per share. The current FY06 revenue consensus is $290.57 million and EPS consensus is $1.19. The company also foresees their full-year 2007 revenue guidance to be $335 million to $350 million and diluted earnings per share guidance of $1.53 to $1.62. The current FY07 revenue consensus is $343.19 million and EPS consensus is $1.57.

California Pizza Kitchen, Inc. (NDAQ:CPKI) announced today that revenues increased 16.4% to $146.0 million for the fourth quarter, which compares to the consensus of $143.6 million. Comparable restaurant sales increased approximately seven percent. Management is increasing its earnings per diluted share guidance to $0.15-$0.17, versus prior guidance of $0.13-$0.15. The consensus is $0.15.

Eaton (NYSE:ETN) is increasing its guidance for fourth quarter earnings by approximately five cents per share. The EPS is between $1.55 and $1.65, while the current consensus is $1.57.

Electro Scientific Industries Inc. (NDAQ:ESIO) found its stock being accumulated again by Nierenberg Investment Management, who disclosed a 10.8% stake in a Schedule 13D/A filed with the SEC. Nierenberg first got involved with the company not long ago when they asked the company's board to cure the its excessive capitalization by instituting a one-time $4.00 dividend. With this request currently under consideration, the hedge fund is now presenting additional analysis reasoning that the company could be worth as much as $40 per share in three or four years.

According to the filing:

"ESIO has an additional $8 million of cash, not included in the cash and marketable securities lines of the balance sheet, $1 million from a subsequent insurance settlement and $7 million in a litigation bond in Taiwan, which increases cash per share to $7.73 ... If ESIO were to restore inventories and receivables to June 3, 2006 levels (we believe both ultimately can be reduced even more), and if we were to add the above-mentioned $8 million cash, ESIO's total cash and marketable securities would be $8.21 per share, 43.2% of ESIO's share price at the close on January 9. ESIO is profitable, cash flow positive, and it has zero debt."

The hedge fund also laid out its reasoning behind increasing its stake in the company:

1. We believe that ESIO has excellent management.
2. ESIO enjoys world leading market shares in its three major product lines, which give it the potential to earn an attractive return on equity.
3. The combination of organic growth, increased R&D investment, a number of promising new product releases, and possible acquisitions could enable ESIO to double its revenues over the next three to four years. Management has shared this goal with the public on several occasions. Given the company's business model, such growth would drive earnings per share north of $2.00, and, in our view, ESIO's share price to $40, more than double its current depressed level.
4. ESIO continues to have a fortress balance sheet, fed by free operating cash flow from profitable operations.

Many are skeptical, however, as the company's share price has dropped through 2006 from around $25 per share to settle at its current level of $19 per share. Moreover, while the hedge fund presents many valid arguments for a higher share price, much of it is contingent upon the company's ability to execute and other investors' confidence in management. However, this company is definitely one worth watching over the next few months and years as the company works to implement strategies to unlock shareholder value.

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Delta Air Lines, Inc. (OTC:DARLQ) moved up $0.08, or 6.15%, to $1.38 this morning on news that the company has received an increased unsolicited bid from U.S. Airways. The new offer is for 89.5 million shares of U.S. Airways stock and $5 billion in cash, compared to the original offer of 78.5 million in stock and $4 billion in cash. Obviously, the overall value of the deal depends largely on the value of U.S. Airways stock; however, they estimated the new bid at between $12.7 billion to $15.4 billion.

While Delta has already disclosed their five year plan to emerge from bankruptcy, there are many investors and debt-holders that are looking to get their money back sooner through a merger or sale of the company. However, in an official response, Delta said, "Delta's Board of Directors will fulfill its fiduciary duty to review the revised unsolicited merger proposal announced today by US Airways. On its face, the revised proposal does not address significant concerns that have been raised about the initial U.S. Airways proposal and, in fact, would increase the debt burden of the combined company by yet another $1 billion." Clearly, this bid is an improvement; however, without management approval it is unlikely that the bid will go through. But, with the possibility for further dialogue between U.S. Airways and Delta, there is a possibility that an agreement could be reached. This makes Delta a stock worth watching over the next few months.

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Greenbrier Companies (NYSE:GBX) reported Q1 earnings of $0.12 per share, in-line with estimates. Revenues came in at $246.6 million versus the consensus of $228.4 million. They foresee the FY07 EPS to be $2.15 to $2.40 versus the consensus of $2.92.

New York & Company, Inc. (NYSE:NWY) currently expects fourth quarter diluted earnings per share at the low end of the earnings guidance range provided on November 16, 2006 of $0.37 to $0.46. The current consensus is $0.40.

The Talbots, Inc. (NYSE:TLB) announced that earnings per share on a reported basis for the fourth quarter ending February 3, 2007 is expected to breakeven with an adjusted EPS of $0.04. This reflects a $0.07 decline in the Talbots brand performance versus the same quarter last year, a higher than anticipated loss at the J. Jill brand. The current consensus stands at $0.30.  The company sees Q1 of 2007 GAAP EPS between $0.36 to 0.43; the current consensus is $0.56.

Helen of Troy Limited (NDAQ:HELE) reported Q3 EPS of $0.72, versus the consensus of $0.85. Revenues came in at $213.4 million versus the consensus of $203.97 million, with a Q4 EPS of $0.25-$0.30 versus the consensus of $0.36 and an EPS of $1.53-$1.58 versus previous guidance of $1.70 to $1.80 and the consensus of $1.77. There are estimated FY07 revenues of $626-$631 million versus the consensus of $621.05 million. For the fiscal year beginning March, the company is providing guidance of annual sales in excess of $660 million and annual earnings in excess of $2.00 per diluted share. The consensus stands at $652.7 million and $2.01, respectively.

Volt Information Sciences, Inc. (NYSE:VOL) reported Q4 EPS of $0.86, twenty-four cents better than estimates. Revenues were $610.2 million versus $615.96 million consensus. VOL reported the FY06 EPS of $1.97 and revenues of $2.3 billion, with the current FY EPS consensus of $1.73 and the revenue consensus of $2.34 billion.

Audiovox Corp. (NDAQ:VOXX) reported a Q3 EPS of $0.17, two cents better than estimates of $0.15. Meanwhile revenues came in at $151.83 million versus the consensus of $148.77 million.

Oxford Industries Inc. (NYSE:OXM) reported a Q2 EPS of $0.68, versus the consensus of $0.69. Consolidated net sales increased nearly five percent to $291.0 million, versus the consensus of $290.35 million. They foresee the Q3 EPS to be $0.52-$0.60 versus the consensus of $0.86 and the FY07 EPS to be $3.00 to $3.15 versus the consensus of $3.33. The FY07 sales are estimated to be between $1.14 billion and $1.16 billion compared to initial full year guidance of $1.16 billion to $1.18 billion and the consensus of $1.17 billion.

Ramtron International Corporation (NDAQ:RMTR) expects to report product revenue of approximately $9.1 to $9.2 million. This result compares to the outlook management provided in its Q3 earnings which estimated product revenue between $10.2 million and $11.2 million.

Alcoa (NYSE:AA) reported Q4 EPS of $0.74, nine cents better than estimates while revenues were $7.8 billion versus $7.63 billion.

Apple Computers, Inc. (NYSE:AAPL) shares set new highs today after moving up $7.10, or 8.31%, to close at $92.57. The move was driven by the company's introduction of its much-anticipated iPhone device, which will be able to play music and take pictures, among other things. Investors are hoping that this new device will be able to disrupt the cell phone market in the same way that the iPod has dominated the MP3 player market shortly after its introduction. Moreover, the device's ties to several other key Apple services - most notably its iTunes music service - could help boost earnings in other areas. Jobs, not adverse to a little hyperbole, boldly stated, "We are all born with the ultimate pointing device - our fingers - and iPhone uses them to create the most revolutionary user interface since the mouse" calling the new device "revolutionary and magical". While the device won't be available in the states until June, the company did reveal their pricing at $499 for the 4gb model and $599 for the 8gb model.

The company also announced that it would be changing its name from "Apple Computers, Inc" to a much simpler "Apple, Inc", marking its move from strictly computers to consumer electronics.

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