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Apollo Group (Nasdaq: APOL) $35.94. Announced Monday after market close financial results for the three months ended November 30, 2010. Consolidated net revenue for the first quarter of fiscal 2011 totaled $1,326.4 million, which represents a 5.4% increase over the first quarter of fiscal 2010. Consolidated net revenue growth in the first quarter was primarily driven by selective tuition price increases at University of Phoenix. Although University of Phoenix Degreed Enrollment declined 3.8% year-over-year to 438,100, average enrollment during the quarter increased slightly, resulting in a modest increase in revenue. A $9.0 million decrease in net revenue from BPP, due to lower student enrollment and the unfavorable impact of foreign exchange rates, also offset some of the increase. Lower Degreed Enrollment at University of Phoenix is in part the result of a 42.4% decrease in New Degreed Enrollment. The Company believes this decline is principally due to the adverse impact on the admissions process arising from changes in the manner in which admissions and other employees are evaluated and compensated, the full implementation of University Orientation as well as continued refinement of the Company’s marketing approaches.
The Company reported income from continuing operations attributable to Apollo Group for the three months ended November 30, 2010, of $236.0 million, or $1.61 per share (146.7 million weighted average diluted shares outstanding), compared to income from continuing operations attributable to Apollo Group of $240.4 million, or $1.54 per share (156.0 million weighted average diluted shares outstanding) for the three months ended November 30, 2009. Results for the first quarter of fiscal 2011 contain special items totaling $4.7 million pre-tax ($2.9 million after tax) consisting of a $3.8 million restructuring charge associated with a strategic reduction in force, primarily at University of Phoenix, and a $0.9 million charge for accrued incremental post-judgment interest related to a securities class action lawsuit. The fiscal 2010 first quarter results included a tax benefit of $11.4 million resulting from the settlement of disputed tax issues with the Internal Revenue Service.
What They Do: Apollo Group, Inc. is one of the world's largest private education providers and has been in the education business for more than 35 years.
Sears Holdings (Nasdaq: SHLD) $70.60. Today announced domestic comparable store sales for the five-week ("December"), quarter-to-date ("QTD") and year-to-date ("YTD") periods ended January 1, 2011 for its Kmart and Sears stores.
Kmart's quarter-to-date comparable store sales continued to benefit from our layaway program as well as from increases in the toys, home, sporting goods, apparel and footwear categories. These increases were partially offset by declines in the food and consumables and pharmacy categories. Sears Domestic's sales decline was primarily driven by the hardlines categories. Over half of the decline occurred in consumer electronics with appliances and tools also experiencing declines. In contrast, Sears footwear, jewelry, and automotive categories generated comparable store sales growth during the quarter-to-date period.
Expecting net income attributable to Holdings' shareholders for the quarter ending January 29, 2011 will be between $370 million and $450 million, or between $3.39 and $4.12 per diluted share. Our expectation of fourth quarter net income attributable to Holdings' shareholders and earnings per share attributable to Holdings' shareholders excludes the potential impact, if any, related to store closings and impairment charges, restructuring activities including severance, and mark-to-market gains and losses on hedge transactions executed by Sears Canada. We expect the fourth quarter effective tax rate to be approximately 32%, due to the favorable resolution of certain federal and state income tax matters. In the fourth quarter of the prior year, the Company reported net income attributable to Holdings' shareholders of $430 million, or $3.74 per diluted share.
For the full year ending January 29, 2011, the Company expects net income attributable to Holdings' shareholders to be between $130 million and $210 million, or between $1.16 and $1.88 per diluted share, which also excludes the potential fourth quarter impact, if any, related to store closings and impairment charges, restructuring activities including severance, and mark-to-market gains and losses on hedge transactions executed by Sears Canada. For the full year ended January 30, 2010, the Company reported net income attributable to Holdings' shareholders of $235 million, or $1.99 per diluted share.
What They Do: Sears Holdings Corporation is the nation's fourth largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada.
Amtech Systems (Nasdaq: ASYS) $25.73. Today reported preliminary results for its fiscal 2011 first quarter ended December 31, 2010, including record revenue of approximately $52 million ($45 million solar), a 14% increase over the preceding quarter and 235% increase over the first quarter of fiscal 2010, and record fiscal first quarter bookings of approximately $134 million ($126 million solar). The Company’s total order backlog at December 31, 2010 was a record $172 million, compared to $94 million at September 30, 2010. The Company expects to report final fiscal 2011 first quarter results in early February.
J.S. Whang, Chief Executive Officer of Amtech, commented, “Our strong preliminary revenue for the first quarter further demonstrates our technology leadership in high efficiency solar diffusion and our operational capability to manage and service this high-end growth market. With our continued success in expanding our solar market share with an increasing number of top tier solar customers, we recorded a record number of orders and continue to ramp up operations to support our record-breaking backlog and profitably manage our rapid growth.”
What They Do: Amtech Systems, Inc. manufactures capital equipment, including silicon wafer handling automation, thermal processing equipment and related consumables used in fabricating solar cells and semiconductor devices.
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