Another Yahoo re-post which details the CMTN CFO's reaction to stock drop via Dow Jones newswire:
CFO comments NO PROBLEM
by: montealban_2000
9/27/00 7:39 pm
Msg: 42694 of 42805
Copper Mountain CFO: No News To Explain Stk Drop
Dow Jones Newswires
By Janet Whitman
Of DOW JONES NEWSWIRES
NEW YORK -- Copper Mountain Networks Inc. (CMTN) Chief Financial Officer John Creelman
said late Wednesday that the telecom equipment maker has not changed its financial guidance.
"We are comfortable with (previous) estimates," said Creelman.
A FirstCall/Thomson Financial survey of nine analysts produced a mean estimate for third quarter
earnings of 26 cents a share and 98 cents for the year.
Creelman, who spoke to Dow Jones Newswires following the 22% drop in Copper Mountain's
stock in regular trading Wednesday, said the company has issued no news that would explain the
selloff.
"If we were to issue news, we would have issued it in a press release," he said. "There's no negative
news or any formal commentary from analysts that follow us."
Market observers attributed the stock's slide to jitters about Copper Mountain's heavy exposure to
the troubled competitive local exchange carrier, or CLEC, sector.
CLECs - startup telecom companies typically offering telephone and Internet services - account for
the bulk of sales at Copper Mountain, a manufacturer of digital-subscriber-line, or DSL, equipment.
DSL enables speedy Internet connections over telephone lines.
"We do sell to CLECs and certainly the CLEC sector is newer," said Creelman. "There are always
going to be issues in terms of how successful they're going to be."
But, he added, the company sells a significant amount of equipment to established CLECs, including
Northpoint Communications (NPNT), McLeodUSA (MCLD), Rhythms NetCommunications
(RTHM), and Mpower Communications (MPWR), which shouldn't experience the same woes as
less established CLECs.
Network Access Solutions (NASC) is not one of Copper Mountain's customers, said Creelman.
Network Access, a CLEC which uses DSL technology, announced Sept. 14 that its new line adds
will fall sharply below analysts' expectations and that, due to tight funding, it will scale back
significantly its expansion plans. (Despite its woes, Network Access said it still expects to meet
earnings and revenue expectations for the quarter.)
Creelman said that Copper Mountain's selloff Wednesday could be due to the broader weakness in
the telecom equipment sector.
Telecom equipment stocks plummeted Wednesday amid concerns that demand for their products will
slow next year because of the possibility of reduced spending by carriers.
"When I look at the telecom equipment sector, all of the prices appear to be substantially off their
52-week highs," said Creelman.
-Janet Whitman; Dow Jones Newswires
201-938-5248; janet.whitman@dowjones.com
Posted as a reply to: Msg 42690 by AnthDom |
