Russell 2000 dropping
The Russell 2000 index is declining along with the other major U.S. indices, as investors continue to consolidate their gains. Among specific small cap companies, shares of Orckit Communications Ltd. (Nasdaq: ORCT) are down on news of a quarterly loss, while Answers Corp. (Nasdaq: ANSW) announced it will not be profitable in the second quarter of 2007.
At 11:31 a.m. ET the Russell 2000 had shed 6.99 points, or 0.84 percent, to 824.28. The Dow Jones Industrial Average was down 53.72 points, or 0.40 percent, to 13,259.25.
Israeli Orckit Communications Ltd. lost money in the first quarter of 2007, the telecom equipment manufacturer said after the opening bell. The net loss for the three months ended March 31 was $5.6 million, or $0.36 per share, compared with net income of $5.8 million, or $0.34 per share, in the first quarter of 2006. Analysts were expecting Orckit to lose $0.40 per share. The stock is down $0.45, or 4%, to $11.03.
Shares of tree nuts and peanuts marketer John B. Sanfilippo & Son, Inc. (Nasdaq: JBSS) are trading lower on news the Elk Grove Village, Ill.-based company widened its quarterly net loss. The net loss for the third quarter of fiscal 2007 was $6.2 million, or $0.58 per share, compared with a net loss of $5.9 million, or $0.56 per share in the analogous period of fiscal 2006, the company said before the opening. Wall Street expected earnings of $0.01 per share. The wider loss was due to declines in net sales and pounds shipped to all distribution channels, particularly in the industrial and consumer segment, the company said. The stock is at $12.05, down $1.94, or 14%.
Answers Corp., which owns and operates the information portal Answers.com, expects a net loss in the second quarter, the New York-based company said after Monday’s close. The net loss for quarter ended June 30 is projected at between $0.075 million and $0.475 million. Revenues are estimates at between $2.8 million and $3.2 million. Two analysts polled by Thomson Financial are looking for averaged revenues of $3.74 million. Shares are down $2.67, or 19%, to $11.47.
In economic news, inventories at U.S. wholesalers rose 0.3% in March, the U.S. Commerce Department said after trading got under way. That’s below economists’ expectations of a 0.6% rise. Inventories increased 0.4% in February.
The data suggest production has increased as companies are moving more merchandise.
