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A little more detail on the BBRS call last week...
SAN FRANCISCO--(BUSINESS WIRE)--Oct. 14, 1999--Robertson Stephens Managing
Director and Senior Communications/Networking Analyst Paul Johnson today raised
estimates and reiterated his Buy rating on Redback Networks (NASDAQ:RBAK).
Redback Networks, headquartered in Sunnyvale, Calif., develops and markets
Subscriber Management Systems (SMS) that enable high-speed Internet-working over
new-broadband networks.
"We are reiterating our Buy rating on Redback Networks following the company's
announcement of better-than-expected third-quarter 1999 financial results," said
Johnson. "The company reported revenues of $20.6 million and a net loss of $0.02 per
share, versus expectations of $15.5 million and a net loss of $0.07 per share. Revenues
grew 86 percent sequentially and 602 percent year-over-year. In addition, the company
increased its deferred revenue account by approximately $4.6 million in the quarter"
"The upside surprise was driven by strong-new-customer acquisitions during the quarter
and continued aggressive deployment of the company's systems by existing customers,"
said Johnson. "Redback added 20 new customers during the quarter, including a
significant new relationship with Qwest Communications."
"We are raising our fiscal 1999 and fiscal 2000 earnings-per-share estimates from
($0.23) to ($0.15) and from $0.18 to $0.27, respectively, reflecting the impressive growth
in the September quarter," said Johnson. "We believe the company will continue to be as
aggressive as possible in its investment in R&D and S&M expenses to continue to drive
its current dominant market position and commanding competitive advantage."
Clients interested in receiving more information should contact their salesperson at (415)
781-9700.
--Bill |
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