ATVI: Shares of video game publisher Activision are down about 9% in the pre-market this morning, after the company warned on a big revenue shortfall for the current quarter. How big? A Credit Suisse First Boston analyst lowered revenue projections to $686 million from $791 million and slashed earnings to 26 cents a share from previous projections of 53 cents. Just two weeks ago, we posted a prescient bear's take on Activision. It pays to read the CESB!
PHG: Phillips Electronics announced that it is spinning off its semiconductor division, and is expected to seek out a buyer for that unit. In Amsterdam, Phillips stock jumped 4% on the news. The WSJ adds: 'The new company would be one of the world's 10 largest semiconductor businesses, with 2004 sales of €5.5 billion ($6.6 billion) and core earnings of around €450 million... customers include mobile-phone makers Nokia Corp. and Samsung, computer manufacturer Dell Inc. and consumer-electronics giant Sony Corp.'
AAPL: Bear Stearns' Andrew Neff and Banc of America's Keith Bachman both downgraded Apple Computer yesterday. Said Bachman: "We still like the story but the recent run-up of over 50% in the last six weeks has left us less comfortable recommending putting new money to work."
MSFT: The WSJ (sub. req.) reports that Microsoft is consolidating its consumer businesses to better compete with Apple, Sony and other digital entertainment leaders.