Lojack Reaches Settlement Agreement and 2 Stocks that Have Hit 52-Week Lows

Advanced Micro Devic (NYSE:AMD) will likely report Q3 earnings after market close on Thursday, October 18, via a conference call scheduled at 5:00 pm ET. The consensus estimate is (15c) for EPS and $1.28B for revenue, states First Call. Additionally, the whisper number is (3c), which is 12c ahead of the analyst estimate. On Oct. 11, AMD reduced its guidance for Q3 due to weaker demand spanning all product lines. Revenue was guided to fall 10 percent sequentially from Q2’s $1.41 billion. Also, the gross margin expectation was reduced to about 31 percent because of an inventory write-down of about $100 million as a result of lowered anticipated future demand for certain products. Furthermore, the Q3 GM was also negatively impacted by weaker than expected demand, contributing to lower than anticipated average selling prices for AMD’s Computing Solutions Group products and lower than expected utilization of its back-end manufacturing facilities. Operating expenses for Q3 will likely see a fall of about 7 percent sequentially due to tightly controlled expenses in the quarter. AMD currently is working to cut expenses as it copes with falling demand for personal computers, and it is allegedly planning to cut as many as 2,340 jobs, or about 20 percent of its workforce. Consensus for Q4: (15c) on $1.28B in revenue. The shares closed at $2.62, down $0.15 or 5.42% on the day. They have traded in a 52-week range of $2.64 to $8.35.

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Flamel Technologies (NASDAQ:FLML) announced that the U.S. FDA  accepted its New Drug Application, or NDA, for an undisclosed hospital-based product. Flamel has received a Prescription Drug User Fee Act, or PDUFA, date, which is the target date for the FDA to finish its review of the NDA, of May 31, 2013. Because of competition, the company will not identify the product currently, but it plans to provide more information at a later date. Flamel thinks that the product has the ability to have a significant impact on the company’s revenue generation as well as a favorable impact regarding its progression to profitability. If it is approved by the FDA, the product will gain nearly $25 million to $35 million or more in peak annual revenues, if the company has the ability to market and price the product successfully. The shares closed at $3.76, down $0.22 or 5.53% on the day. They have traded in a 52-week range of $3.89 to $7.70.

Lojack Corp. (NASDAQ:LOJN) has reached a settlement agreement regarding the remaining claims in the two California wage-and-hour class action lawsuits against the company, and beneath the terms of the settlement agreement, subject to approval of the Superior Court of California for Los Angeles County, Lojack has agreed to pay as much as $8.1 million, which includes plaintiffs’ attorneys’ potential fees and costs, as a means to resolve all remaining California state class action claims. Because of the settlement agreement, the company believes it will record a one-time charge of about $6.9 million, or approximately 40c per diluted share, for Q3. The $6.9 million charge is a representation of the $8.1 million expected settlement less the $970,000 previously accrued for the state court case and the $200,000 reduction in the estimated attorneys’ fees accrual in the federal court case. The shares closed at $2.10, down $0.05 or 2.33% on the day. They have traded in a 52-week range of $2.14 to $4.49.

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