Among gainers today, Salix Pharmaceuticals (SLXP) shares are up 22% after the FDA's gastrointestinal drugs panel voted 14-4 that the firm's Xifaxan drugs warrants approval, to treat brain damage caused by liver failure. The shares were off so much yesterday during the FDA review that they were actually halted by Nasdaq. Volatility like that is why I leave these drug developer stocks to the healthcare experts to dig into....
Among losers is data storage firm STEC (STEC) down 24%. They gave Q1 2010 revenue guidance that was about 50% less than Wall Street was looking for, as an inventory glut at their largest customer (EMC) will wreck the quarter, maybe the whole first half of 2010:
"We believe that the first half of 2010 will be a trough period for our business due to an inventory carryover by our largest customer. Although, we believe the marketing programs that we implemented last quarter have had a positive effect on the sell-through of SSDs, based on our best estimates we now anticipate this inventory carryover to continue to negatively impact our sales to this customer during the first half of 2010, as we do not expect any meaningful production orders from this customer during that time.
"We currently expect first quarter of 2010 revenue to range from $33 million to $35 million with diluted non-GAAP loss per share to range from $0.11 to $0.13."
And as is typical lately, they follow bad news the only way they know how - spending shareholder dollars to repurchase company stock, announcing an $80million share repurchase program.
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