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Strategies & Market Trends : Sharck Soup

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To: Sharck who started this subject	5/3/2001 3:14:31 PM
From: Softechie	Read Replies (1) of 37746

DJ Corvis Dn -3: Two Major Customers To Wind Down Buildouts 27 Apr 13:07 Salomon's Henderson said he is concerned not only because Corvis has not been able to pull in additional customers, but also because some of its existing customers will be winding down their network buildouts. Company spokeswoman Keira Shein said Corvis currently has a $200 million contract with Broadwing Inc. (BRW), a $300 million contract with Williams Cos. (WMB) and a $150 million contract with Qwest Communications International Inc. (Q). Corvis recently announced an expanded pact with Qwest. Henderson pointed out that Broadwing, which contributed about $64 million to Corvis' total first-quarter revenue of $84 million, will contribute only about $25 million to Corvis through the rest of the year because its buildout is nearly complete. Williams is also winding down its network buildout. Only Qwest will be ramping up its network, but will not get started on that until the second half of the year. Other analysts refrained from reducing ratings, but did cut price targets. CIBC World Markets Corp. slashed its price target to $15 from $40 and while U.S. Bancorp Piper Jaffray cut its target to $9 from $11. In order to sit out the downturn, Corvis will need to cut costs. Shein said the company is considering a "full range of options" but has not yet made any decisions. She listed job cuts, reductions to excess facility capacity and supply chain savings as some of the options. -By Ellen Sheng, Dow Jones Newswires; 201-938-5176; ellen.sheng@dowjones.com (END) DOW JONES NEWS 04-27-01 01:07 PM

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