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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