Stock Market Chumps..........10-25-06

LifeCell Corp. (LIFC)

Last Trade:	23.82
Trade Time:	4:00PM ET
Change:	8.02 (25.19%)

Shares of Lifecell Corp. lost a quarter of their value Wednesday after the company posted quarterly results that missed analysts' average estimates and lowered its full-year earnings outlook.

For the third quarter, the provider of human tissue for surgical procedures reported earnings of 15 cents a share and revenue of $35.3 million. Analysts were expecting earnings of 16 cents a share on revenue of $38.3 million.

Lifecell shares fell $8, or 25 percent, to $23.86 in late afternoon trade on the Nasdaq. The shares hit the day's low of $22.50 in intra-day trading.

In a conference call, Lifecell cited slowdown of surgical procedures that it typically sees during the summer months as reason for the sequentially flat revenue in the latest third quarter.

In a research note, analyst Matt Dolan of Roth Capital Patners said Lifecell's weak third-quarter sales were due to lower-than-expected sales of its lead product, AlloDerm Regenerative Tissue Matrix.

AlloDerm, a reconstructive surgical product, contributed $29.9 million in sales for the third quarter, but fell short of the analyst's estimates of $31.9 million.

The comapny said it expects its 2006 product revenue mix to be about 88 percent reconstructive and the rest shared equally by orthopedic and urogynecology.

LOWER OUTLOOK

Lifecell said it now expects full year 2006 earnings of 57 cents to 59 cents a share, including expected share-based compensation of about 19 cents a share.

In July, the company had forecast earnings of 59 cents to 63 cents a share, including share-based compensation expense of about 17 cents a share.

The company also lowered its 2006 product revenue outlook to a range of $138 million to $140 million, down from the $143 million to $148 million it expected earlier.

"The revised guidance reflects probably lower-than-expected sales of Alloderm for 2006," Dolan said on the telephone.

Roth has a "buy" rating and a price target of $38 on the stock.

Analysts were expecting the company to earn 61 cents a share, on revenue of $146.6 million, for 2006, according to Reuters Estimates.

BTU International Inc. (BTUI)

Last Trade:	9.73
Trade Time:	4:00PM ET
Change:	1.71 (14.95%)

BTU International, Inc. (Nasdaq NM: BTUI) announced its financial results for the third quarter ended October 1, 2006.

Net sales for the quarter ended October 1, 2006, were $18.3 million, down two percent compared to $18.5 million for the third quarter of 2005, and down 19 percent compared to sales of $22.5 million in the preceding quarter.

Net income for the 2006 third quarter was up 48 percent at $2.3 million, or $0.25 per diluted share, compared to a net income of $1.6 million, or $0.20 per diluted share, reported in the third quarter of 2005, and down 27 percent compared to a net income of $3.2 million, or $0.34 per diluted share, in the preceding quarter.

Net sales for the first nine months of 2006 were $61.7 million, an increase of 31 percent compared to the same period last year. Net income for the nine months ended October 1, 2006, more than tripled to $8.2 million, or $0.87 per diluted share, compared to a net income of $2.5 million, or $0.34 per diluted share, for the first nine months of 2005.

Commenting on the company's performance, Paul J. van der Wansem, chairman and CEO, said, "Although our third quarter sales were below our earlier expectations, our cost control programs and higher product margins contributed to a solid quarterly profit. Our solar energy business continued to be strong, while we experienced softness in the electronics markets."

Outlook
"We are enthusiastic about the long-term market opportunities in solar energy and electronics and are expanding the development of new products for these sectors. Near term, sales for the fourth quarter are expected to be equal to the third quarter plus-or-minus five percent with earnings per share in the $0.22 to $0.27 range," concluded van der Wansem.