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Reports US

US stock market daily report (December 06, 2013, Friday)

December 9, 2013, Monday, 04:26 GMT | 23:26 EST | 08:56 IST | 11:26 SGT
Contributed by Millennium Traders

Barnes & Noble, Inc. (BKS-NYSE) on Friday, is reportedly under investigation by the Securities and Exchange Commission for improperly allocating "certain information technology expenses" between its Nook and consumer bookstore group, in its earnings report. The SEC investigation stems from Barnes & Noble's recent decision to restate earnings for fiscal 2011 and fiscal 2012. Additionally, the SEC is looking into a "separate matter related to a former non-executive employee’s allegation that the company improperly allocated certain information technology expenses between its NOOK and retail segments for purposes of segment reporting." 

Barnes & Noble in July said, several quarterly reports "should no longer be relied upon because of a material error contained in such financial statements." On July 29 Barnes & Noble announced they would restate earnings for the years ended April 28, 2012 and April 30, 2011 "in order to correct previously reported amounts" and said they had "incorrectly overstated certain accruals for the periods prior to April 27, 2013" related to its distribution center. For the two years, the restatement reduced Barnes & Noble's losses, but showed no change in revenue. The restated loss for fiscal 2012 was $64.8 million compared with previously reported loss of $68.9 million. The restated loss for fiscal 2011 was $68.8 million compared with previously reported loss of $73.9 million. Barnes & Noble said that after a review of deferred tax assets and liabilities, it "concluded" that a deferred tax liability should be reversed.

The investigation into the company's restatement of earnings by the SEC began on October 16 with official notice to Barnes & Noble. Spokesperson for the SEC John Nester declined to describe the specifics, citing the commission's "practice to neither confirm or deny the existence or nonexistence of investigations." Barnes & Noble spokesperson Mary Ellen Keating said the company "cannot comment on why the SEC is investigating the restatement."

At the close of trading Friday, shares of BKS book retailer were lower by 12%.

Ulta Salon Shares Sink
Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA-NASDAQ) shares ended the trading session down 21% on Friday after reporting late Thursday, earnings of 70 cents per share for Q3, below expectations of 74 cents per share. Ulta Salon reported expectations for Q4 in a range of $1.07 to $1.10 per share again, below expectations.

Auxilium Gets FDA Approval
Auxilium Pharmaceuticals Inc. (AUXL-NASDAQ) shares ended trading session Friday higher by 12% after U.S. Food and Drug Administration said it would approve the company’s medication Xiaflex for treatment of Peyronie’s disease. Peyronie’s disease is an unusual curvature of the penis. Xiaflex has also been used to treat Dupuytren’s contracture, a condition in which fingers bend toward the palm and cannot be fully straightened. Xiaflex is marketed as Xiapex in Europe by Auxilium and Pfizer Inc. (PFE-NYSE)