From Briefing.com earlier today:
11:00 ET******
EXODUS COMMUNICATIONS INC. (EXDS) 96 7/8 +12 7/8. Shares of provider of Internet system and network management solutions are fast off
the gate this morning after the company reported impressive Q1 results. The company reported a net loss of $1.09 per share (pre-split), narrower than the
First Call estimate, while revenues for the period surged 43% on a sequential basis to $30.1 million. Exodus also reported that the average annualized
revenue per customer grew more than 11% sequentially to $148,000, while it surpassed the 1,000 customer mark in the period as well. The numbers
were good enough to prompt ING Baring Furman Selz to upgrade the stock from "buy" to "strong buy" and raise its revenue and EBITDA estimates based
on the stronger-than-expected results. At present, ING Baring expects revenues to grow by 21% in 1999, 88% in 2000 and 60% in 2001. Meanwhile, the
company is expected to turn profitable by the year 2001 when it is projected to earn $0.42 a share. At the same time, PaineWebber and Legg Mason
have reiterated their "buy" ratings and 12-month price targets of $120 and $145, respectively. While the financial results were good, the stock is also getting a
boost from the decision to acquire Cohesive Technology Solutions Inc. for $100 million. The purchase of Cohesive is expected to help position Exodus
as a major provider of complex web hosting sites and also help improve the performance of mission critical Internet functions, especially to its enterprise
customers. In sum, Exodus appears to be meeting its financial target while at the same time acquiring assets that will enhance its Internet offerings at a time
when competition among providers is accelerating. Despite the meteoritic rise in the stock, there appears to be room for more.
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