Robertson Stephens Daily Growth Stock Update on CS, PMCS, NSTA
(PR Newswire, 06/29/2000 11:04)
SAN FRANCISCO, June 29 /PRNewswire/ -- The following is being issued by Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271:
TECHNOLOGY
Estimate Changes:
Cabletron Systems, Inc. (NYSE:CS)
2001 EPS: $0.03 from ($0.11)
Buy
Paul Johnson, Communications/Networking
"Cabletron reported its first quarter results, beating our expectations, with revenues $275.1 million and a pro forma loss of $0.02 per share versus our estimates of $272 million and a pro forma loss of $0.05 per share," said Johnson. "The upside in the quarter came from the company's new businesses, and higher than expected gross margins due to mix shift and Cabletron's move to contract manufacturing with Flextronics. We are raising our fiscal 2001 earnings-per-share estimates to reflect the strong results of Cabletron's new business units in the quarter and the higher-than-expected gross margins. Cabletron is currently trading at the low end of our valuation analysis. We believe as the four new companies emerge and begin to execute on their respective plans, we could see the overall Cabletron valuation improve, and move towards the higher end of our expectations." |
