10:47 am Washington Mutual (WM)

After reports circulated yesterday that Washington Mutual (12.03, -1.12) was on the cusp of receiving a $5 billion capital infusion, the company announced today that it entered into definitive agreements to raise an aggregate $7 billion through a direct sale of equity securities to an investment vehicle managed by TPG Capital, and to other investors, including many of WaMu's top institutional shareholders. TPG's investment vehicle, as anchor investor, will purchase $2 billion in newly-issued WaMu securities.

The press release noted that, with the proceeds of the offering, WaMu's capital ratios are expected to remain well above its targeted levels during the period of elevated credit costs in its loan portfolios in 2008 and 2009.

In the capital raising transaction, WaMu sold approximately 176 million shares of its common stock at a purchase price of $8.75 per share. In addition, the company issued an aggregate of approximately 55,000 shares of contingently convertible, perpetual non-cumulative preferred stock at a purchase price and liquidation preference of $100,000 per share. After receipt of certain approvals, including approval of the company's shareholders, the convertible preferred stock will automatically convert into the company's common stock at an initial exercise price of $8.75 per share, subject to adjustment.

Separately, Washington Mutual issued a downside preannouncement for the first quarter, saying it sees a loss of $1.40 per share versus the First Call consensus estimate that called for a loss of $0.49.

WaMu indicated that it plans to reduce the quarterly dividend rate to $0.01 per common share from its most recent quarterly dividend rate of $0.15 per common share.  The cut is expected to preserve approximately $490 million of capital annually.

09:25 am Chattem (CHTT)

Health care products and personal care supplements manufacturer and marketer Chattem (CHTT 67.75) announced results for its fiscal first quarter last evening.  Chattem's top line benefited from acquired brands, helping both sales and earnings per share results grow substantially during the past year.  Overall, sales were better than analysts anticipated, and earnings per share matched the consensus forecast.

Pairing Chattem's recent brand acquisitions with strong performances from Gold Bond, Aspercreme, and Selsun brands, sales increased 20% year-over-year to $121 million.  Top line results bested the consensus sales forecast by $4 million. 

While adding products to its portfolio, Chattem was able to maintain costs.  Gross margins increased 90 basis points to 71.2%, up from last year's 69.3%.  Excluding product recall expenses, operating margins increased 260 basis points to 29.9%, up from last year's 27.3%.

During the quarter, Chattem incurred a $6 million charge related to its Icy Hot product.  The charge encompasses costs related to product returns and inventory impairment.

Adjusting for such expenses, earnings climbed more than 30% during the past 12 months, totaling $0.95 per share in the first quarter.  EPS results matched analysts' consensus estimate. 

Looking ahead, management expects adjusted earnings will range from $4.00 to $4.20 per share in 2008.  The consensus full-year estimate currently calls for earnings of $3.97 per share.

09:10 am NutriSystem (NTRI)

Weight loss management company NutriSystem (NTRI 14.94) indicated its first quarter revenues are expected to be approximately $216 million.  That is tantamount to a positive pre-announcement considering the First Call consensus estimate is currently $203.5 million.

In its press release, NutriSystem said, "business is in good shape as we enter the second quarter... The business performance in the first quarter was better than expected as the marketing efficiency in the latter stages of the quarter showed improvement, and it's certainly stabilized versus January trends. We also continue to witness improvement in our customer retention efforts and in the business of reactivating ex-customers."

The company purchased about 10% of its outstanding shares, or 3.3 million shares, during the quarter.  Additionally, it was able to increase its cash balances and ended the quarter with no debt.

Shares of NTRI are surging in pre-market trading, currently up 20%.

08:58 am Novellus Systems (NVLS)

Semiconductor equipment company Novellus Systems (NVLS 23.81) issued mixed guidance for its first quarter, saying it sees earnings per share in the range of $0.15 to $0.17 and revenues between $315 million and $325 million.  The First Call consensus estimates had been pegged at $0.23 and $318.5 million.

Novellus clarified that revenue is expected to be at the low end of the aforementioned guidance range.

The expected shortfall in earnings per share, according to the company, "...is the result of a number of factors including a less-favorable than expected product mix combined with higher manufacturing spending in our industrial applications segment, a larger than expected inventory write-down related to evaluation units in our semiconductor segment, and an increase in our forecasted tax rate."

Shares of NVLS are indicated 5.0% lower in pre-market action.

08:51 am Advanced Micro Devices (AMD)

Computing and processing solutions company Advanced Micro Devices (AMD 6.34) provided a displeasing first quarter update after yesterday's closing bell.  Management announced it expects a decline in revenues as a result of slowing business and also announced plans to trim its workforce.

Management stated in its press release that reported sales have been lower across each of the company's business segments.  In turn, the company expects first quarter revenue to total $1.5 billion, which is 15% less than it generated in the prior year and $100 million less than the consensus first quarter estimate.  The company already anticipated a decline in-line with seasonality.

The company also announced it is reducing its workforce by roughly 10% by the end of the third quarter.  The decision comes as part of management's intention to adjust the company's cost structure, suggestive the impact of the current lull in activity is stronger than the company anticipated.  Advanced Micro will record a restructuring charge in the second quarter, as a result, but is currently unable to determine the amount of the charge.

Advanced Micro will report its official first quarter results mid-April.

08:23 am Alcoa (AA)

After yesterday's close, Dow Jones component Alcoa (AA 36.90) started the first quarter reporting season by missing its earnings target. 

Despite the boom in global demand for raw materials, shares of Alcoa have made only a slight advance this year, up just 2% as of Monday's close.  That advance looks to be negated in this morning's pre-market activity; the materials company is trading lower prior to the market's open as a result of its disappointing announcement.

Alcoa reported adjusted earnings from continuing operations totaled $0.44 per share, which was below the $0.48 per share that analysts came to forecast.  Notably, comparable earnings from the prior year totaled $0.79 per share.  Earnings were reportedly pinched by higher input and energy costs, as well as a weak U.S. dollar. 

Revenues, however, were better than expected.  Despite slipping almost 7% year-over-year, sales totaled $7.4 billion.  Analysts were projecting sales of just $7.2 billion.

On a sequential basis, results were mixed across Alcoa's various segments.  After-tax operating income slipped 18% to $169 million.  Primary metals after-tax operating income advanced 57% to $307 million.  Flat-rolled products swung from a loss to $41 million in after-tax operating income, while engineered products increased 82% to a record $138 million in after-tax operating income.