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To: Rob Preuss who wrote (703)	6/23/1999 12:02:00 PM
From: Rob Preuss	Respond to of 1762

The following message was posted on Yahoo before the opening this morning. If this is the sole reason for the selloff yesterday (other than broad market concerns for things like interest rates and such), then this price drop represents a buying opportunity. Rob

To: Rob Preuss who wrote (703)	6/23/1999 12:05:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

Digital Microwave Shares Slide On Analyst's Comments Dow Jones Online News, Tuesday, June 22, 1999 at 20:58 By Tom Locke, Staff Reporter DENVER -(Dow Jones)- Digital Microwave Corp.'s shares dropped 20% Tuesday after an analyst dimmed his forecast for the wireless- communications gear maker. PaineWebber Inc. analyst Walter Piecyk Tuesday morning cut his earnings-per-share estimate for the San Jose, Calif., company to 16 cents a share from 31 cents a share for the 2001 fiscal year 2000. And for fiscal 2001, he cut his estimate to 44 cents from 58 cents, he said. Piecyk also cut his revenue estimate for fiscal 2000 to $270 million from $315 million, and for fiscal 2001 to $330 million from $400 million. Plus, he lowered his stock price target to $11 a share from $12 a share, he said. "Our opinions are based on discussions with senior managers," said Piecyk. He said it now appears the microwave radio business is not going to turn around as early as he thought. But Deutsche Banc Alex. Brown wireless equipment analyst Brian Modoff attributed the stock drop to Piecyk having cut his estimates. But, said Modoff, "We disagree." He said there is a recovery in demand already under way for products from Digital Microwave, which makes point-to-point radios that connect bay stations in wireless telephone networks. "We think the company's business is doing well," he said, noting that his opinion is based on conversations with Digital Microwave executives Tuesday and two weeks ago. "The company's not changed their outlook and continues to see strong demand," Modoff said. For fiscal 2000, Modoff is estimating Digital Microwave earnings per share of 20 cents on revenue of $303 million. For fiscal 2001 he is estimating earnings per share of 50 cents on revenue of $379 million. The mean estimate of 10 analysts surveyed by First Call are for fiscal 2000 earnings of 24 cents a share and fiscal 2001 earnings of 53 cents a share. Digital Microwave (DMIC) shares Tuesday fell $2.688 to $10.75 on volume of 3.5 million, compared with average daily Nasdaq-volume of 737,000. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. Companies or Securities discussed in this article: Symbol Name NASDAQ:DMIC Digital Microwave