Services Sector Review: Local Toy Stores Vs. Amazon, New Netflix Original Series

PDI, Inc. (NASDAQ:PDII) announced the signing of a three-year agreement with a current Top 5 global pharmaceutical client and renewal of a one-year engagement with a specialty pharmaceutical client. Approximately $48M in revenue is expected to be generated in 2012 between both contracts. Under the renewed contract with a current Top 5 pharmaceutical client, PDI will provide a dedicated sales team to exclusively promote products to primary care and specialty providers beginning Jan. 1. The first year of the three-year contract is expected to generate revenues to PDI of approximately $30M; expected revenues for the outlying years will be determined prior to the start of each year. The renewal contract with the specialty pharma company is to run for one year beginning Jan. 1, and is expected to generate revenues to PDI of approximately $18M. Under the agreement, PDI will provide a dedicated sales team to call on women’s health providers.

The shares closed at $7.04, up $0.6, or 9.32%, on the day. Its market capitalization is $103.65 million.

Capella Education Company (NASDAQ:CPLA) sees the elimination of 63 non-faculty positions during the upcoming quarter, resulting in a $1.3M charge.

The shares closed at $39.44, down $5.91, or 13.03%, on the day. Its market capitalization is $570.12 million.

Amazon.com, Inc. (NASDAQ:AMZN): Local toy shops that have focused in the past on the threat from big box stores like Walmart (NYSE:WMT) and Target (NYSE:TGT) now say Amazon.com (NASDAQ:AMZN) is their biggest threat, but the little stores have had some success in their fight with the online giant and toy manufacturers have been helpful and supportive, according to The New York Post.

The shares closed at $191.30, down $0.29, or 0.15%, on the day. Its market capitalization is $87.05 billion.

Yahoo! Inc. (NASDAQ:YHOO) is retreating after talks that the Internet company was holding about splitting off its Asian assets reached an impasse and were halted, according to technology website All Things D, which cited unnamed sources The talks were suspended due to a deadlock over an arrangement that Yahoo had sought to reach with Chinese e-commerce company Alibaba and Japan’s Softbank, All Things D said. The arrangement was designed to save Yahoo over $4B in U.S. taxes, noted the publication, whose sources said that a change in Yahoo’s goals caused the negotiations to break down. In mid-afternoon trading, Yahoo sank 78c, or 4.84%, to $15.34.

The shares closed at $15.36, down $0.76, or 4.68%, on the day. Its market capitalization is $19.06 billion.

Google Inc (NASDAQ:GOOG) has narrowed its acquisitions focus to its big strategic areas, with buys intended to increase its presence in new markets like video and mobile, David Lawee, Google’s head of corporate development, told Financial Times in an interview. The company does not expect to strengthen its presence in social networking via acquisitions, however, Lawee noted.

The shares closed at $609.76, down $2.44, or 0.4%, on the day. Its market capitalization is $198.26 billion.

Netflix, Inc. (NASDAQ:NFLX), in its ongoing bid to position itself as a rival to Time Warner’s (NYSE:TWX) HBO, will produce its second original series, a comedy to be called Orange is the New Black, reported Bloomberg.

The shares closed at $123.07, up $4.77, or 4.03%, on the day. Its market capitalization is $6.82 billion.

On Assignment, Inc. (NASDAQ:ASGN): Sees Q1 revenue $162M-$165M vs. consensus $154.27M. Sees Q1 gross margin 32.4%-32.7%.

The shares closed at $13.67, up $1.73, or 14.49%, on the day. Its market capitalization is $503.95 million.

Want news like this in real-time so you can get an edge? Click here for Wall St. Cheat Sheet Pro.