Stocks to Watch: Gap, AnnTaylor and Limited Brands

Among the companies whose shares are expected to see active trading in Thursday's session are Gap
Inc., Mylan Laboratories Inc., and Limited Brands Inc.
Aeropostale Inc. (ARO) is expected to report first-quarter earnings of 25 cents a share, according to
a survey of analysts by Thomson Financial.
AnnTaylor Stores Corp. (ANN) is expected to post earnings of 46 cents a share for the first quarter.
Barnes & Noble Inc. (BKS) is expected to report first-quarter earnings of a penny a share.
Gap (GPS) is expected to post earnings of 24 cents a share for the first quarter.
Hormel Foods Corp. (HRL) is expected to report second-quarter earnings of 51 cents a share.
Mylan Labs (MYL) is expected to post earnings of 50 cents a share for the fourth quarter.
Patterson Cos. (PDCO) is expected to report fourth-quarter earnings of 45 cents a share.
Toll Brothers Inc. (TOL) is expected to post earnings of 25 cents a share for the second quarter.
Toro Co. (TTC) is expected to report second-quarter earnings of $1.69 a share.
Verigy Ltd. (VRGY) is expected to post earnings of 36 cents a share for the second quarter.
After Wednesday's closing bell, Limited Brands (LTD) reported a first-quarter profit that was nearly
halved from the same period a year before and cut its full-year per-share forecast.
Also, storage-technology company Network Appliance Inc. (NTAP) reported a fiscal fourth-quarter
profit that rose 51 percent from a year ago due to strong sales across its product lines, but it said a
brief slowdown in March will likely cause it to deliver weaker-than-expected results for its current,
first fiscal quarter.
Watch List
Abercrombie & Fitch Co. (ANF) reported first-quarter net earnings of $60.1 million, or 65 cents a
share, up 7 percent from $56.2 million, or 62 cents a share, during the year-ago period. The New
Albany, Ohio-based teen retailer said revenue rose to $742.4 million from $657.3 million. Same-store
sales fell 4 percent during the quarter. Additionally, Abercrombie & Fitch said it still expects fiscal
2007 per-share earnings of $1.47 to $1.52, and capital expenditures of $395 million to $405 million.
The company also said it expects to increase gross square-footage by about 11 percent to 12
percent, through the addition of 10 new Abercrombie & Fitch stores, 29 new Abercrombie stores, 69
new Hollister stores, and nine new Ruehl stores.
AES Corp. (AES) reported fourth-quarter net earnings of $51 million, or 8 cents a share, down from
$140 million, or 21 cents a share, during the year-ago period. Per-share earnings from continuing
operations were 7 cents vs. 21 cents a share. Adjusted earnings were 6 cents a share compared with
23 cents a share, last year. The Arlington, Va.-based power company posted revenue for the three

months ended Dec. 31 of $3.15 billion vs. $2.96 billion. Additionally, AES said it expects 2007
earnings from continuing operations of $1.04 a share, and adjusted earnings of $1.07 a share.
Alcoa, Inc. (AA) said it is sticking to its offer to acquire rival aluminum producer Alcan Inc. (AL) (AL)
for $58.60 in cash and 0.4108 of a share, or $73.25 as of the May 7 offer announcement, saying
management has already met with a significant number of Alcan's shareholders and "are pleased to
have received strong support for the combination." Late Tuesday, the board of Alcan urged
shareholders to reject Alcoa's hostile offer on the grounds that it was too low and completion of the
merger was too uncertain due to regulatory and other hurdles. Analysts had speculated Alcoa might
respond with a higher offer.
Ansoft Corp. (ANST) reported fourth-quarter net earnings of $7.93 million, or 30 cents a share, down
4 percent from $8.27 million, or 32 cents a share, during the year-ago period. Last year's results
included $1 million, or 4 cents a share, of income tax benefit associated with the reversal of the
company's remaining valuation allowance for certain U.S. Federal net deferred tax assets, Ansoft
said. The Pittsburgh-based software developer said revenue for the three months ended April 30
rose to $28.6 million from $24.7 million.
BJ's Wholesale Club Inc. (BJ) said it has authorized an additional $100 million share buyback,
bringing the company total stock repurchase program to $133 million.
Business software maker CA Inc. (CA) said that a 7 percent increase in fourth quarter sales was not
enough to push the company to a profit for the period. CA said earnings for the period ended March
31 rose to a loss of $20 million, or 4 cents a share, from a loss of $41 million, or 7 cents a share in
the period a year earlier. Meanwhile revenue rose to $1.01 billion. Excluding certain items, CA said
it saw earnings of 20 cents a share. Islandia, New York-based CA said it expects fiscal 2008 earnings
of between 75 cents a share and 79 cents a share, and 2008 revenue of between $4.05 billion and
$4.1 billion.
California Pizza Kitchen Inc.'s (CPKI) board approved a 3-for-2 stock split in the form of a 50 percent
stock dividend. The Los Angeles restaurant company said the split will increase its shares
outstanding to 29.1 million from 19.4 million and will boost trading liquidity. The split is payable
June 18 to shareholders of record June 11.
A former employee of Coca-Cola Co. (KO) was sentenced to eight years in prison for conspiring to
steal and sell the beverage giant's trade secrets, the Department of Justice said late Wednesday.
Joya Williams, a former executive administrative assistant at Coke in Atlanta, also received three
years of supervised release following the sentence, and was ordered to pay $40,000 in restitution,
the DOJ said. Co-conspirator Ibrahim Dimson of the Bronx, N.Y., also was sentenced to five years in
prison, followed by three years of supervised release, and fined $40,000, the government said.
ConAgra Foods Inc. (CAG) raised its fiscal 2007 earnings forecast due to stronger-than-expected
fourth-quarter results at the company's Trading and Merchandising unit. The Omaha, Neb.,
packaged food company expects earnings to come in above the high end of its prior estimates of
$1.28 to $1.33 a share for the quarter ending May 31.
Express Scripts Inc.'s (ESRX) board approved a 2-for-1 stock split in the form of a stock dividend.
The St. Louis prescription services company said the split is payable on about June 22 to
shareholders of record June 8.
Foot Locker Inc.'s (FL) fiscal first-quarter net income fell 71 percent to $17 million, or 11 cents a

share, from $59 million, or 38 cents a share, a year earlier on a same-store sales decline and a weak
performance in U.S. stores. Same-store sales fell 5.1 percent during the quarter. The New Yorkbased seller of athletic apparel's net sales for the quarter ended May 5 decreased 3.6 percent to
$1.32 billion from $1.365 billion a year earlier.
Gap Inc. (GPS) named Patrick Robinson executive vice president of design for Gap adult and
Gapbody, effective May 29. The San Francisco-based specialty retailer said Robinson, 40, will
oversee all design elements for Gap's apparel, accessories and intimates lines in North America.
General Motors Corp. (GM) said it plans to offer roughly $1.1 billion of convertible debt securities.
The automaker said the purpose of the offering is to replace $1.1 billion in convertible securities put
to the company in March of this year and to "bolster liquidity at a time when the capital markets
present an attractive opportunity to do so." GM also said it has received a commitment for a
supplemental revolving credit facility of roughly $4.1 billion.
Gymboree Corp.'s (GYMB) fiscal first-quarter net income rose 17 percent to $20.9. Who could have
thought that this would be your conclusion of past events?million, or 67 cents a share, from $17.9
million, or 53 cents a share, a year earlier on higher retail operations sales. The San Francisco
specialty retailer said net sales for the quarter ended May 5 increased 13 percent to $209.3 million
from $185.8 million a year ago. Gymboree sales from retail operations rose 13 percent to $206.7
million from $183 million a year earlier.
Hewlett-Packard Co. (HPQ) said it has settled the Securities and Exchange Commission's
investigation regarding the company's disclosure of Tom Perkins' resignation from its board of
directors in May of 2006. The Palo Alto, Calif.-based computer maker said it agreed, without
admitting or denying the SEC's findings, to the entry of a cease-and-desist order by the SEC. What
otherwise might this imply for coming generations? Do you've just about any thoughts on the
matter? Permit us understand with your assist of a new comment.In the order, the SEC said H-P
should have reported that Perkins resigned because of a disagreement with the company. H-P did
not offer any explanation when it announced Perkins' resignation The SEC imposed no fine or other
penalty in connection with the settlement
Hot Topic Inc. (HOTT) reported a first-quarter net loss of $809,000, or 2 cents a share, compared
with a net loss of $1.41 million, or 3 cents a share, during the year-ago period. The City of Industry,
Calif.-based teen retailer said revenue for the three months ended May 5 rose to $157.3 million from
$154 million in the comparable period last year, while same-store sales fell 2.3 percent.
Novell Inc. (NOVL) said it has completed the review of its historical stock-based compensation
practices and determined the related accounting impact. The company did not find any evidence of
"intentional wrongdoing" by any former or current Novell employees, officers or directors, but the
company said it determined that it used incorrect measurement dates for some of stock-option
grants. The Waltham, Mass.-based software company said it should have recorded $19 million in
after-tax stock-based compensation expense in the period from fiscal 1997 through 2005. The
company said, however, that the expense that should have been recognized was not material to any
period, and that it will not restate its financial results for prior periods. Novell will reflect
adjustments of $19 million for unrecorded stock-based compensation expense, and related income
tax effects, as a decrease to retained earnings as of Nov. 1, 2005, the beginning of its 2006 fiscal
year.
PSS World Medical Inc.'s (PSSI) fiscal fourth-quarter net income grew 21 percent to $15.6 million,
or 23 cents a share, from a year-earlier profit of $12.9 million, or 19 cents a share. The Jacksonville,

Fla., medical products distributor's net sales for the fourth quarter ended March 30 grew nearly 5
percent to $443 million, from $422.7 million a year earlier. Net sales for the company's physician
business grew nearly 8 percent, while net sales for the elder-care segment fell 1.5 percent.
Quantum Corp.'s (QTM) fiscal fourth-quarter net loss narrowed to $20.3 million, or 10 cents a share,
from a year-earlier net loss of $23 million, or 12 cents a share. The recent period included stock
compensation, acquisition and other items that reduced results by 11 cents a share. The San Jose
storage-device and software company's revenue grew about 35 percent to $277.3 million, from
$205.7 million for the year-earlier period ended March 31.
RenaissanceRe Holdings Inc.'s (RNR) President William Riker intends to retire at the end of 2007,
when he will be replaced by Chief Executive Neill Currie. The Hamilton, Bermuda, insurance
provider said Riker will remain in an advisory capacity until August 2008.
School Specialty Inc. (SCHS) said that Chief Financial Officer David Gomach has resigned, effective
July 2, to pursue personal and professional interests. The Greenville, Wis.-based education company
has retained an executive search firm to help find Gomach's successor.
Shire Plc (SHPGY) reported positive results from studies of guanfacine extended release, a potential
treatment for attention-deficit/hyperactivity disorder. The company said data from two short-term
Phase III placebo-controlled studies and two long-term Phase III open-label studies demonstrated
that guanfacine "significantly improved all core symptoms" of ADHD in children aged 6 to 17 years.
U.K.-based Shire submitted a new drug application for guanfacine in August of 2006, and the
application is currently under FDA review.
SI International Inc. (SINT) said it has agreed to acquire privately held Logtec Inc. for $59 million.
Fairborn, Ohio-based Logtec, which has 350 employees and had 2006 revenue of $54 million, is a
provider of logistics, acquisition, and information technology support, primarily to the federal
government.
Synopsys Inc. (SNPS) reported second-quarter net earnings of $41.3 million, or 28 cents a share, up
from $5.38 million, or 4 cents a share, during the year-ago period. The Mountain View, Calif.-based
software company said revenue for the three months ended April 30 rose to $292.9 million from
$274.8 million. The results were driven by an increase in revenue and a decrease in operating
expenses compared with a year ago, as well as a $12.5 million litigation settlement received from
Magma Design Automation, the company said. On a pro forma basis, earnings were $53.2 million, or
35 cents a share, vs. $24.5 million, or 17 cents a share, last year.
Zumiez Inc.'s (ZUMZ) fiscal first-quarter net income increased 46 percent to $1.62 million, or 6
cents a share, from $1.11 million, or 4 cents a share, a year earlier on higher sales and store
expansion. The Everett, Wash., action sports apparel and equipment retailer's net sales for the
quarter ended May 5 rose 44 percent to $68.8 million from $47.8 million a year ago. Analysts polled
by Thomson Financial predicted first-quarter earnings of 6 cents a share and revenue of $68.4
million. Same-store sales increased 11 percent.
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