Tag - Sumt

Stocks are trading lower today as fearful investors brace themselves in anticipation of poor earnings reports that will begin being released this week.

At 1:40 pm ET, the Russell 2000 (NYSE:IWM) is down 14.55, or 3.19%, at 441.58, while the Dow is down 1.75% at 7,877.09 and the S&P 500 is down 2.09% at 824.93.

Small caps bucking the trend today include SumTotal Systems (Nasdaq:SUMT), up 47% after receiving a buyout offer. Legacy Reserves (Nasdaq:LGCY) is also climbing 29% today after receiving a proposal from Apollo Management to acquire all outstanding units of the company at a cash purchase price of $14 per unit.

******Time flies. Seems like earnings season just ended and yet here we are again. But first-quarter earnings kick off tomorrow with Alcoa (NYSE:AA).

Given how far the stock market has come over the last three weeks, you might think stock prices are set up for a fall as the reality of earnings dashes the enthusiasm that economic recovery is at hand.

Earnings will be bad. S&P 500 companies are expected to report that earnings are down around 35% from the year-ago quarter. And earnings were already falling then.

But don’t forget, stocks have been rallying because investors are anticipating an economic recovery. Though there have been some subtle signs that the economy is starting to improve, it hasn’t happened yet. In other words, nobody expects Q1 earnings to be good.

This earnings season is going to be all about guidance. What do companies see in the future? Will they be willing to say things look better? And more importantly, will any optimism be reflected in revenues and earnings forecasts?

That’s what investors will be focused on. I’d say it’s an “even money bet” whether stocks are higher or lower when earnings season wraps up a few weeks . . .

Shares of SumTotal Systems, Inc. (Nasdaq: SUMT), a provider of talent and learning management solutions, are getting a raise today on news of an improved outlook for the fourth quarter and the entire fiscal 2007 year.

The Mountain View, Calif.-based company unveiled a forecast projecting that earnings for the three months ended Dec. 31 will be between $1.5 million and $1.8 million, or $0.05 per share and $0.06 per share. Eight analysts polled by Thomson Financial were expecting a net income of $0.03 per share.

SumTotal Systems also projected that fourth-quarter revenue will be between $33.2 million and $33.6 million, above Wall Street’s consensus view of $28.82 million in revenue.

“I am pleased with our fourth-quarter results,’ said CEO Don Fowler in a statement. “Led by a very strong quarter in North American enterprise sales, we saw strength in all areas of our business.”

The new numbers are an improvement over SumTotal Systems’ previous guidance, which called for a profit between $0.5 million and $1.5 million, or $0.02 per share and $0.05 per share, while revenues were estimated at between $28 million and $30 million.

“This is a positive data point following three quarters of missing expectations,” said Nathan Swanson, managing director and senior software analyst at investment bank ThinkEquity Partners, in a phone interview. “The deals they made earlier in the year finally came though.”

Houston Wire & Cable Co. (Nasdaq: HWCC), Crystal River Capital, Inc. (NYSE: CRZ) and NovaStar Financial Inc. (NYSE: NFI) are the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage losers:

Shares of SumTotal Systems, Inc. (Nasdaq: SUMT) are down $1.89, or 24%, to $5.85 at 11:51 a.m. ET following news the provider of talent and learning management solutions saw its second-quarter profit decline.

The net income for the three months ended June 30 was $1.9 million, or $0.06 per share, compared with a net income of $2.3 million, or $0.09 per share, during the same period of 2006, the Mountain View, Calif.-based announced after Tuesday’s close.

Revenue jumped 15% to $30.5 million in the second quarter, compared with $26.5 million a year earlier.

“We achieved record revenue, record deferred revenue, and record cash flow from operating activities,” said CEO Don Fowler.

Great Wolf Resorts, Inc. (Nasdaq: WOLF), Eddie Bauer Holdings, Inc. (Nasdaq: EBHI) and A.C. Moore Arts & Crafts (Nasdaq: ACMR) are among the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $500 million:

The Russell 2000 and the other major U.S. indices are seesawing on both sides of Wednesday’s closing levels this morning. At 11:19 a.m. ET the Russell 2000 was up 0.32 points, or 0.04%, to 836.50. The Dow Jones Industrial Average was up 14.39 points, or 0.11%, to 13,503.81.

Shares of NovaMed Inc. (Nasdaq: NOVA) are sagging following news the provider of healthcare services intends to offer $52.5 million worth of senior notes due 2012. As part of the offer, underwriter Deutsche Bank Securities Inc. will be given the option purchase up to $7.5 million additional notes, the Chicago-based company said after Wednesday’s close. NovaMed said it will use part of the proceeds to repay its debt.

April 13 (SmallCapInvestor.com) – Stocks are up just barely in midday trading today, while the price of oil has eased slightly.  Among small caps, shares of pharmaceutical company Dyax Corp. (Nasdaq: DYAX) are flying high on upbeat drug trial news, but garment maker Lakeland Industries, Inc. (Nasdaq: LAKE) is down on news of a decline in profit.

At 1:53 PM the Russell 2000 had added 0.41 points, or 0.05 percent, to 815.46.  The Dow Jones Industrial Average was up 45.60 points, or 0.36 percent, to 12,598.56.