Stocks open flat
April 5 (SmallCapInvestor.com) – Stocks are close to the flat line this morning, following news jobless claims rose slightly more than expected. Among small caps, shares of Cutera, Inc. (Nasdaq: CUTR) are sharply down on news of a lower first-quarter profit expectation, while provider of security solutions Aladdin Knowledge Systems Ltd. (Nasdaq: ALDN) is up following news of a large order from India.
At 10:41 AM the Russell 2000 was up 1.06 points, or 0.13 percent, to 811.85. The Dow Jones Industrial Average was down 7.07 points, or 0.06 percent, to 12,522.98.
Shares of Cutera tumbled $12.18, or 31.73%, to $26.21 after the company revised downward its first-quarter profit expectations. The Brisbane, Calif.-based provider of laser and other light-based aesthetic systems expects earnings of $0.11 to $0.13 per share in the three months ended March 31, down from the previous estimate of $0.21 per share, it announced after the opening bell. The company said lower-than-expected productivity levels of its recent sales expansion are hurting profits. Cutera expects quarterly revenue of about $23 million, below the earlier forecast of $26 million.
Security solutions provider Aladdin Knowledge Systems is trading in positive territory following an announcement of a deal to supply its authentication technology to 3.8 million IT students in India. The Consortium for Indian Information Technology Education has chosen the company’s eToken authentication solution to secure its network of e-Learning resources throughout India, Israel’s Aladdin reported after Tuesday’s close. Shares are up $2.28, or 13.44%, to $19.25.
Shares of specialty home improvement retailer Restoration Hardware, Inc. (Nasdaq: RSTO) are down on news fiscal fourth quarter 2006 earnings missed the mark. Net income during the quarter ended Feb. 3, 2007, was $0.34 per share, compared with a net loss of $0.52 per share a year earlier, the Corte Madera, Calif.-based company said after the close Wednesday. Analysts were looking for earnings of $0.36 per share. Net revenue was $243 million, a 27% increase, compared with $191.0 million in the same quarter a year ago. Same-store sales increased 9.1%. Shares are down $0.33, or 4.97%, to $6.31.
Initial U.S. jobless claims for the week ending March 31, increased a more-than-expected 11,000 to 321,000. That’s the highest level since March 3, the Labor Department reported before the start of trading today. Economists were expecting a rise of 7,000 claims. However, the four-week average of new claims was 315,750, down 1,500 and the lowest since Feb.3.
The price of oil is in the high $64 a barrel range. The 15 British sailors and marines captured by Iran almost two weeks ago were freed on Wednesday and returned home today. The standoff between Britain and Iran, the world’s fourth largest oil exporter, briefly pushed the price of crude oil above $68 last week.
By Alex Alexandrov
