Stock Market Chumps..........9-25-06

Microsemi Corp. (MSCC)

ast Trade:	19.55
Trade Time:	1:27PM ET
Change:	3.22 (14.14%)

Microsemi Shares Fall Sharply on 4Q Warnings, Needham Cuts Rating on Stock

Shares of power management semiconductor maker Microsemi Corp. plunged in Monday morning trading, setting a new year low, after the company lowered its fourth-quarter outlook, prompting a downgrade at Needham & Co.

On Friday, Microsemi said it expects fourth-quarter results to fall short of previous expectations due to "weakness in the overall market."

Shares of Microsemi, which have traded between $21.20 and $31.85 over the last year, were down $2.90, or 12.7 percent, at $19.87 in morning trading on the Nasdaq. Earlier in the session shares set a new 52-week low of $19.73.

The company now forecasts fourth-quarter earnings of 25 cents to 27 cents per share, excluding one-time charges, and projects sales will be roughly flat to up 2 percent sequentially. In July, the company said it expected earnings of 29 cents to 31 cents per share for the fourth quarter on a 7 percent to 9 percent sequential increase in sales.

Needham & Co. analyst N. Quinn Bolton cut his rating on the stock to "Buy" from "Strong Buy," and lowered his price target to $25 from $32. Still, Bolton thinks the company's future prospects appear sound.

"The company's longer-term revenue growth and operating margin expansion opportunities still remain intact in our opinion," Bolton wrote in a note to clients. "We encourage investors to accumulate positions in the low-$20 range."

Microsemi's announcement comes on the heels of similar warnings from other integrated circuit manufacturers, including Maxim Integrated Products Inc., Microchip Technology Inc., Silicon Laboratories Inc. and Advanced Analogic Technologies Inc.

Revlon Inc. (REV)

Last Trade:	1.07
Trade Time:	1:23PM ET
Change:	0.17 (13.70%)

Revlon Cuts 250 Jobs, Dumps Cosmetics Line in Restructuring Plan

Revlon Inc. is cutting 250 jobs, or 8 percent of its work force, and is canceling its recently launched Vital Radiance cosmetics line aimed at older women in a restructuring plan aimed at making the company profitable.

The steps announced Monday come a week after Revlon, which is controlled by financier Ron Perelman, ousted its president and chief executive officer, Jack Stahl, and replaced him with the company's CFO, David L. Kennedy.

Revlon also announced it expects losses in the third quarter and for the year, causing shares to drop more than 16 percent, or 20 cents, to $1.04 on the New York Stock Exchange. Shares are trading at the low end of its 52-week range of 76 cents to $3.95.

"We are moving forward with a clear focus on leveraging the tremendous equity of our established brands -- particularly Revlon and without the burden of the operating loss we anticipated from Vital Radiance in 2007," said Kennedy in a statement.

Revlon, which has been struggling with debt and increased competition from rivals L'Oreal SA's Maybelline and P&G's Cover Girl, had been counting on Vital Radiance to help reverse its fortunes. But results for the brand, which landed on retailer's shelves early this year, were disappointing, causing merchants this spring to cut back on space allowed for them.

In a conference call with investors, Kennedy said that Revlon will increase its focus on its Revlon and Almay businesses to drive sales.

The restructuring, which marks the second cost-cutting move in seven months, includes eliminating certain senior executive positions and consolidating facilities. The company's brand marketing and creative activities in the United States will be consolidated, reducing layers of management.

As part of the changes, the roles of executive vice president and chief marketing officer, held by Stephanie Klein Peponis, and chief creative officer, held by Rodelle Udell, will be eliminated. The brand marketing leadership will report directly to Kennedy.

Furthermore, the role of executive vice president and president of international, currently held by Tom McGuire, is also being eliminated. The executives leading the company's three geographic international regions will report directly to Kennedy.

For the third quarter, Revlon said it expects a loss of $135 million and net sales in the range of $280 million to $290 million. For the full year, operating loss is expected to be approximately $45 million to $55 million, reflecting the impact of restructuring actions and the costs of discontinuing the Vital Radiance brand.

For the year, the company expects net sales of approximately $1.3 billion, including the impact of Vital Radiance returns and allowances provisions in the second and third quarters of 2006.

In February, Revlon announced it planned to eliminate 165 jobs -- or just under 2.5 percent of its global work force -- in an effort to reduce costs.

Chiquita Brands International Inc. (CQB)

Last Trade:	13.80
Trade Time:	1:24PM ET
Change:	1.93 (12.27%)

Chiquita Suspends Dividend, Says Spinach Concern Hurting Profit

Banana producer Chiquita Brands International Inc. said Monday that it is suspending its dividend and warned that third-quarter financial results will be hurt by concerns over spinach safety, lower banana prices and banana import rules into the EU.

The company also said that it also is looking at possibly selling its global shipping operations that are used primarily to move fruit from Latin America to North America and Europe.

Shares of Chiquita fell $1.84, or nearly 12 percent, to $13.89 in trading Monday on the New York Stock Exchange. The stock price has ranged between $12.65 and $28.13 in the past year.

Chiquita said the concern over tainted spinach tied to the nation's E. coli outbreak has led to unexpected costs and lower sales for the company's Fresh Express packaged produce business.

The continued negative effects from changes in rules regarding banana imports into the European Union, markedly lower banana prices in core European and trading markets and excess fruit supply are expected to hurt the third quarter significantly, the Cincinnati-based company said.

The company said it will use the $17 million a year that it will save from not paying the quarterly dividend of 10 cents a share to reduce debt and give the company financial flexibility.