Earnings: Argon ST, MCG, RCN
*Argon ST said second-quarter profit grew more than 32 percent, to $5.5 million (25 cents a share) from $4.2 million (18 cents) in the comparable period a year earlier. The Fairfax-based provider of systems and services for what is known as C5ISR -- command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance said revenue grew 37.5 percent, to $88.4 million.
*MCG Capital of Arlington, hurt by current credit market conditions, said profit dropped 92 percent, to $2.5 million (4 cents) from $30.5 million (50 cents). Revenue gained 7.1 percent, to $43 million.
In its statement, the company said it has depended on collateralized loan obligations, or CLOs, for its investing. MCG said it believes that the problems in the CLO market will continue, forcing it to seek alternate forms of debt capital, most likely with higher costs and less favorable terms.
The company reported results last night, and shares were down almost 17 percent, to $6.66, around noon today.
*RCN of Herndon said its first-quarter loss widened to $26.2 million (71 cents) from $4.6 million (13 cents). Revenue grew 17.3 percent, to $179.8 million. Peter D. Aquino, CEO of the fiber-optic telephone, cable television and Internet bundler, said, "We continue to capture the vertical growth opportunity built into our footprint, proactively serving the broadband needs of our target customer groups, residential, small-medium business, carriers and enterprises."
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