Vivus, Harmonic shares fall after hours

LOS ANGELES (MarketWatch) — Shares of Vivus Inc. dropped Monday evening after a federal regulator extended a review of the company’s weight-loss treatment, and shares of Harmonic Inc. fell after the networking services company’s quarterly forecast missed Wall Street’s current estimates.

Vivus’s shares
 slumped 7.8% to $21.13 after the company said the U.S. Food and Drug Administration has extended its review of Qnexa to mid-July, giving the agency more time to study Vivus’s updated submission. The extension by three months — to July 17 from April 17 — is a “standard” period, said Vivus.

Vivus, following a request by the FDA, on April 4 submitted further materials about Qnexa, which in February won backing for its approval by a federal advisory panel. Read about the extended review period for Qnexa.

 shares fell 4.8% to $4.72 as the company, which makes systems that enable interactive video, data and voice services over cable, wireless and other networks, said it expects first-quarter adjusted earnings of 2 cents to 3 cents a share.

Net revenue is expected to come in between $125 million to $128 million, compared with Harmonic’s previous projection of $132 million to $142 million. Analysts polled by FactSet Research were looking for 9 cents a share on $137 million in sales.

Dow ends lower for 4th straight session

Harmonic said revenue was hurt by a slower-than-expected order rate in the early part of the quarter and by a decline in demand from its European customers.

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“Additionally, a higher percentage of our first-quarter bookings were associated with professional services and support agreements that will be recognized as revenue in future periods,” said Harmonic’s Chief Executive Patrick Harshman in a statement .

Preliminary total bookings for the first quarter were about $142.5 million, up 8% from $131.6 million in the year-earlier period, meeting the company’s expectations. The full first-quarter reported will be released on April 24.

On the broader U.S. equity market, stocks dropped sharply, with investors reacting after a holiday break to a lackluster U.S. March nonfarm payrolls report, which showed companies added fewer jobs than expected. Read more about U.S. stocks in Market Snapshot.

The Dow Jones Industrial Average
 lost 130 points, or 1%, to end at 12,929.59. The S&P 500 Index
 declined 1.1% to 1,382.20 and the Nasdaq Composite Index
 fell 1.1% to 3,047.08.

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