Check Point Software Technologies, (CHKP: chart), Internet security company, reported that Q1 net income dropped 16% to 25 cents a share due to 3% revenue decline. If not for equity based compensation expenses and acquisition related charges, the company would have earned 31 cents a share. The company missed analysts’ expectations for earnings of 31 cents a share.

Arkansas Best, (ABFS: chart), a transportation holding company, reported Q1 net income dropped 42% to 24 cents a share, from 41 cents a share a year ago. If not for an after-tax accounting charge of 20 cents a share the company would have reported 4 cents a share in Q1. Revenue soared to $450.6 million, a per day rise of 8%, the company added.

B/E Aerospace, (BEAV: chart), aircraft interior maker, reported that Q1 more than tripled to $13.8 million, or 18 cents a share, from $4.1 million, or 7 cents a share in the year-earlier period. The company raised its 2006 earnings outlook and said it expects earnings of $1.17 a share, vs. earlier guidance of $1.12, adding that stronger-than-expected bookings and robust industry conditions have boosted its confidence for 2007 and 2008. The company beat analyst estimate for earnings of 16 cents a share.

Novartis AG, (NVS: chart), pharmaceutical company, reported Q1 net income advanced 32% to $1.96 billion on 13% revenue growth. Pharmaceutical sales went up 5% on anti-hypertension medicines Diovan and Lotrel and its Gleevec/Glivec leukemia drug, and at generics unit Sandoz, sales advanced 78% on the acquisition of Hexal and Eon Labs. Analysts were beaten, expecting earnings between $1.51 billion and $1.81 billion. Novartis is set for high single-digit net sales growth excluding the Chiron acquisition for 2006 in local currencies, with a record level of operating and net profit.


8:15AM European averages declined at mid-day.
European markets lost ground at mid-day as weaker U.S. dollar put key auto and tech stocks under pressure. Dollar-sensitive shares were leading decliners with automaker DaimlerChrysler and tech company Philips Electronics moving lower. The yen and euro surged after the world’s riches countries urged China to allow further strengthening of the yuan. However, 3.2% rise for Deutsche Telekom helped limit losses. The company gained after private-equity firm Blackstone agreed to make an investment in the telecom. The German DAX 30 dropped 0.2%, the French CAC 40 slipped 0.4%, while London FTSE 100 edged down 0.04%.


7:45AM Asia declined. The Nikkei sharply dropped.
Asian-Pacific benchmarks finished broadly in the negative with the Nikkei leading regional decliners, making the biggest point drop for the year. The Japanese index plunged 2.8% to 16,941.40 as weaker dollar against the yen dragged export-related auto and electronics stocks. Honda Motor slipped 3.7%, Toyota Motor declined 2.8%, Sony dropped 2.8%, and Canon lost 2%. Banking and telecom shares also moved lower. Stocks lost ground as oil and yen surged, following the Washington meeting of the Group of Seven. The financial chiefs of the world’s largest economies issued a statement, expressing the need of greater flexibility in exchange rates. Across the region, South Korea’s Kospi slipped 1.4% after hitting a historic high Friday, Hong Kong’s Hang Seng dropped 1.2%, while Taiwan Weighted Index rose 0.5%, and Australia’s All Ordinaries gained 0.4% on strong mining stocks.