USEC (NYSE:USU) said it was "shocked and disappointed" after the U.S Department of Energy denied the company's loan guarantee application. USEC CEO John Welch said that President Obama had promised to support the loan guarantee when he compaigned in Ohio. Now, even though the company's American Centrifuge project seemingly met the intent of the loan guarantee program in that it would have created jobs using an innovative technology to reduce greenhouse gas emissions according to the company, the application was turned down. USEC said it must now take steps to demobilize the project, despite having invested 1.5 billion dollars, and has now engaged outside advisors to evaluate strategic alternatives. USEC shares plummeted Tuesday morning, down nearly 38%.
Trident Microsystems (NASDAQ:TRID) reported a loss for the quarter of 32 cents per share, compared to a 27 cent loss in the prior quarter and a loss of 11 cents in the same quarter last year. Investors were disappointed by the wider loss, sending Trident shares 20% lower in early trading Tuesday.
Shares of Integral Systems (NASDAQ:ISYS) fell 11 and a half percent after the company warned its third quarter results will be below management's expectations, impacted by lower revenue, higher than expected costs, and a large bad debt reserve. The company now expects to lose 9 cents per share in the quarter, and lowered its full year earnings guidance to 15 cents per share.
Wire and cable products company Anixter International (NYSE:AXE) announced a second quarter loss of 2 dollars and 53 cents per share. The results were impacted by a goodwill impairment charge of 2 dollars and 82 cents. Sales dropped 25% year over year. The company said its per day sales have been relatively flat throughout the first half of the year, and said there are no signs that this will change. Anixter shares off 15% in early trading Tuesday.
American River Bankshares (NASDAQ:AMRB) disappointed investors by posting a second quarter loss of 12 cents per share; that's compared to earnings of 34 cents per share in the same quarter last year. The quarterly loss marks the first for the company in over 25 years, driven by provisions for loan losses. Adding to shareholders' woes, the company's Board of Directors decided to suspend its dividend; American River had previously paid a dividend of 14.3 cents per share. Shares were off 12 and a half percent early Tuesday.
For MarketNewsVideo.com, I'm Angela Salvucci.
