Fund start costs hurt Eaton Vance in 2d quarter

Eaton Vance Corp. said fiscal second-quarter profit fell 42 percent because of costs to start the largest-ever closed-end stock fund. Net income in the three months ended April 30 declined to $23.1 million, or 17 cents a share, from $39.9 million, or 29 cents, a year earlier, the Boston fund company said. Excluding expenses to sell shares in the new fund, which cut earnings by 25 cents a share, profit rose 93 percent. Investors added $10.5 billion into Eaton Vance funds in the latest quarter, more than triple the $2.9 billion in the same period a year earlier. Eaton Vance had $150 billion in assets, 26 percent more than a year earlier. Revenue rose 23 percent to $260.2 billion. (Bloomberg)

Novell Inc., a seller of networking software and computer consulting services, said an internal review found no evidence of wrongdoing by current or former officials in backdating stock options. Novell found some incorrect grant dates and should have recorded $19 million in stock-based compensation costs from fiscal 1997 through 2005, it said. Novell said it doesn't need to restate past results. About 90 percent of the errors came before fiscal 2001. The Waltham company is one of over 220 that have disclosed internal or federal investigations into options. (Bloomberg)

Partners HealthCare System Inc., the state's largest hospital group, plans to borrow about $800 million. Partners expects to sell about $320 million in fixed-rate bonds the week of June 8 and the balance with floating rates the week of June 25, according to Debra Sloan, the firm's capital markets director. The borrowing will fund projects at the system's hospitals and refinance up to $160 million in outstanding debt, Sloan said. Massachusetts General Hospital and Brigham and Women's Hospital formed Partners HealthCare through a merger in 1994. (Bloomberg)

PolyMedica Corp., a seller of diabetes treatment equipment, said revenue in fiscal 2008 will be $800 million to $815 million, or as much as 21 percent more than the year just ended. Profit will be up to $2.20 a share for the year, or growth of as much as 53 percent, the Wakefield company said. Excluding stock compensation, profit will be as high as $2.52 a share. Net income in the fourth quarter, ended March 31, jumped 45 percent to $9.96 million, or 43 cents a share, from $6.86 million, or 29 cents, a year earlier, the company said. Revenue in the period climbed 27 percent to $1.78.2 million. PolyMedica shares fell 40 cents to $40.85 on the Nasdaq. (Bloomberg)

Women's apparel retailer Talbots Inc. said fiscal first-quarter profit dropped 81 percent, hurt by a weak April, and lower-than-expected sales of Talbots casual merchandise. Earnings for the quarter ended May 5 totaled $5.2 million, or 10 cents per share, versus $27.4 million, or 51 cents per share in the prior year quarter. Results include a 13-cent per share charge related to acquisition costs and adjustments. The J. Jill brand had a loss of 9 cents per share while the Talbots brand had a profit of 32 cents per share. Sales rose 27 percent to $573.6 million from $453 million last year. (AP)

THE NATION

The Federal Reserve issued a set of proposals to clarify the terms in credit card offers and statements to make them easier for consumers to understand. The plan would increase, from 15 days to 45 days, the notice banks must give before changing the terms of an agreement, which would give customers more time to shop around for another card with better terms. The measure also includes a requirement that creditors offer 45 days' notice before increasing a rate because of a late payment or default. Other changes include giving consumers more information on what triggers penalties and higher rates, and how long increased rates may last. (Bloomberg)

The Securities and Exchange Commission, responding to executives' complaints that the Sarbanes-Oxley Act has been too costly to implement, approved guidelines that will make it easier to comply with the law. Companies have complained that without specific instructions, they've done expensive, time-consuming work that was then duplicated by their auditors. (Bloomberg)