STOCK WATCH

Avnet

US components distributor Avnet - which owns Bytech Systems in the UK - has conceded that its second-quarter earnings will be below analyst expectations due to a significant shortfall in anticipated December sales.

The distributor said the weak sales occurred in its electronics marketing group and computer marketing group.

Apple

Steve Jobs, Apple chief executive, revealed at MacWorld that the vendor will achieve its fifth consecutive quarter in the black. Credit Suisse First Boston added that analysts had increased forecasts, predicting $1.76 billion for Apple's first quarter, climbing from 1.6 billion for the same quarter last year. Shares climbed $3.25 to $45, the vendor's highest point in three years.

See MacWorld roundup, page 16

Spyglass

Internet software developer Spyglass has revealed it expects to post a loss for its first-quarter results, contrary to forecasts. Analysts had predicted a profit of one cent per share for the period ended 31 December 1998, but Spyglass anticipates a loss of between 16 and 14 cents per share, compared with a loss of 28 cents for the same quarter last year. The company said revenue for the first quarter will be between $4.3 million and $4.7 million, with the final financial results to be released on 20 January.

Amazon

Leading online bookseller Amazon.com has announced fourth-quarter sales have more than tripled from last year to hit #250 million, as the vendor had gained one million additional customers over the holiday season and shipped more than 7.5 million items, quadrupling 1997's seasonal sales.

But Amazon, which is yet to report a profit in nearly four years of operation, warned the massive increase in sales will not reduce its expected fourth-quarter loss because of aggressive pricing and an increase in customer service costs.

Hyperion

Analytic applications software vendor Hyperion has issued a profit warning for second-quarter results, blaming its merger with Arbor Software. Hyperion expects revenue to be $105 million and earnings pershare between 25 cents and 30 cents. The number of US companies defaulting on their bond obligations almost doubled in 1998, with the total worldwide default rate hitting a five-year peak. According to Moody's Investors Service, the rating agency, the number of US companies that defaulted on their obligations rose from 32 to 53.

Electronics Boutique

Electronics Boutique fell four pence last week despite the retailer reporting a strong rise in Christmas sales. The company claimed that overall sales were up 31 per cent in the five weeks to 2 January.

It was also announced that Martin Long, group finance director, was promoted to deputy chief executive and chief financial officer.

See retail roundup, page 10