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B R E A K F A S T W I T H T H E F O O L Wednesday, October 18, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=159574 _________________________________________________________________ Sponsored By: Scottrade Fools, Scottrade is the only broker with $7 trades, 120 local offices & FREE REALTIME STREAMING quotes & charts! Apply now! http://www.lnksrv.com/m.asp?i=159575 "We don't know a millionth of one percent about anything." -- Thomas Edison COPPER MOUNTAIN GETS HALVED Copper Mountain, the provider of digital subscriber line solutions, reported its Q3 earnings yesterday, along with some bad news about its Q4. By LouAnn Lofton Digital subscriber line (DSL) solutions provider Copper Mountain Networks (Nasdaq: CMTN) announced its third-quarter results yesterday after the bell. The company also provided some guidance for its fourth quarter and for its next fiscal year that sent its stock tumbling more than 50% to around $12 in after-hours trading. Copper Mountain closed in regular trading yesterday at $26.88, far below the 52-week high it reached back in July of $125.72. For its third quarter, Copper Mountain had revenues of $93.5 million, 192% ahead of the $32 million it earned in the same quarter a year ago. Pro forma net income, which excludes two charges, was $15.8 million. The company's net income last year in the third quarter was $5.3 million. Copper Mountain's pro forma earnings per diluted share came in a penny ahead of the consensus estimate at $0.27. Third-quarter earnings per share a year ago were $0.09. Now, for the stuff that sent the company's stock plummeting in after-hours trading. Rick Gilbert, Copper Mountain's president and chief executive officer, said, "In light of recent reductions in capital expenditure forecasts from many of our CLEC [Competitive Local Exchange Carriers] customers, we expect revenue and earnings to decline in the fourth quarter of 2000 on a sequential basis." Just how big will the "decline" be? Copper Mountain now expects sales to be $60 million for the fourth quarter. It sees pro forma earnings per share coming in between $0.04 and $0.06. Analysts had been looking for $0.28 a share. Gilbert went on to talk about his company's expected fiscal 2001 results. While pointing out that giving guidance that far out is very difficult, he said he expects sales for fiscal 2001 to be between $300 million and $330 million. Earnings per share should be between $0.16 and $0.25. Street analysts were expecting $1.37 a share for Copper Mountain's fiscal 2001. AFTER-HOURS COVERAGE INTEL VS. ADVANCED MICRO By Brian Lund Intel's revenue warning in September turned out to be cosmetic. Revenue growth was still strong, margins improved meaningfully, and earnings came in at original expectations. Intel continues to dominate its main competitor, AMD. FULL STORY http://www.fool.com/m.asp?i=159576 _________________________________________________________________ NEWS TO GO RF Micro Devices (Nasdaq: RFMD), the wireless communications amplifying chip maker, announced its second-quarter earnings yesterday, and also talked about its expected third-quarter results. For its Q2, the company met estimates with $0.10 a share. Net income was $17.7 million on revenues of $102.2 million. Last year in the second quarter, RF Micro Devices earned $12.5 million on revenues of $68.9 million, or $0.07. The company then said it was lowering expectations for the third quarter because of low demand for its products, as well as product delays. It expects earnings per share to be between $0.04 and $0.05 a share. Analysts were looking for $0.11 a share. International Business Machines (NYSE: IBM) reported its third-quarter earnings after the market's close yesterday. Sales grew by 3% to $21.8 billion. This wasn't enough to satisfy analysts, who were looking for sales to come in at $22.4 billion. Net income for the quarter rose to $2 billion, from $1.7 billion in the same quarter last year. Earnings per share were $1.08, versus $0.90 a share last year. This EPS number met the consensus estimate as reported by First Call/Thompson Financial. IBM blamed at least some of the weak revenue growth on an anemic euro. The company claimed its sales would have risen 6% without those negative currency effects. Chip maker Xilinx (Nasdaq: XLNX) announced its second-quarter earnings yesterday after the bell. The company's revenues grew 83% to $437.4 million, from $238.8 million in its second quarter last year. Net income was $114.1 million, compared to $59.2 million a year ago. Earnings per share beat the consensus estimate by two cents, coming in at $0.32, versus $0.17 last year. Handspring (Nasdaq: HAND) reported its first-quarter results yesterday afternoon. The company's loss was narrower than expected. Excluding some deferred stock compensation costs, Handspring lost $8 million, or $0.08 a share. Analysts polled by First Call/Thompson Financial expected it to lose $0.12 a share. Including those costs, the company lost $0.17 a share, or $16.4 million. Handspring's revenues for the quarter were $70.5 million. Covad Communications Group (Nasdaq: COVD) announced its third-quarter earnings results yesterday. Revenues were $66.7 million, compared to revenues in the year-ago period of $19.1 million. Covad's net loss was $189.9 million, versus a loss of $54.1 million the year before. The company's net loss of $1.22 per share was greater than the consensus estimate of $1.18 per share. In Covad's third quarter last year, it lost $0.47 a share. Covad's chief executive officer, Robert Knowling, pointed to his company's clients as the reason the shortfall. "Due to the weakness in the capital markets, nine of our channel partners have experienced financing difficulties and have slipped in their ability to stay current with their accounts receivable. To conservatively account for this, despite billing $78.1 million in revenue for the third quarter, only $66.7 million was recorded." Check out yesterday's Foolish market wrap-up in just one click. http://www.fool.com/m.asp?i=159577 _________________________________________________________________ EDITOR'S PICK Paul Larson defines this mouthful -- disaggregation and horizontalization -- and explains how they can increase a company's competitiveness and shareholder value. http://www.fool.com/m.asp?i=159578 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=159579 -Fool Community http://www.fool.com/m.asp?i=159580 -Post of the Day http://www.fool.com/m.asp?i=159581 -Latest Fribble http://www.fool.com/m.asp?i=159582 -Latest Market Numbers http://www.fool.com/m.asp?i=159583 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=159584 My Discussion Boards: http://www.fool.com/m.asp?i=159585 My Fool: http://www.fool.com/m.asp?i=159586 Fool.com Home: http://www.fool.com/m.asp?i=159587 My E-Mail Settings: http://www.fool.com/m.asp?i=159588 Sponsored By: Scottrade Fools, Scottrade is the only broker with $7 trades, 120 local offices & FREE REALTIME STREAMING quotes & charts! Apply now! http://www.lnksrv.com/m.asp?i=159589 WIRELESS 201: FREE PREVIEW Get a sneak peek at this report on Soapbox.com http://www.lnksrv.com/m.asp?i=159590 BECOME A FOOL! Get a FREE Investing Guide and more... http://www.fool.com/m.asp?i=159591 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=159592 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-2616-B10181309Address.msg-09:00:19(10-18-2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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