JDSU--Thursday July 27, 10:16 am Eastern Time
Company Press Release
SOURCE: Robertson Stephens
Robertson Stephens Daily Growth Stock Update On SYNT, AMZN, JDSU, QSFT and THC
SAN FRANCISCO, July 27 /PRNewswire/ -- The following is being issued by Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271:
Rating Changes:
Syntel (Nasdaq: SYNT - news)
Long-Term Attractive from Buy
Steven Birer, eServices
``Syntel reported second quarter revenues of $42.1 million, $1.4 million
short of our estimate of $43.5 million," said Birer. "Based upon the decline
in the Metier business, as well as a continued decline in the company's
staffing business, we are lowering our estimates for the remainder of 2000 and
2001. We feel that there is a significant emerging value in the company's
growing eBusiness and Applications Outsourcing practices over a long-term time
horizon. However, for the next several quarters, we see little momentum in
the Syntel story on the top and bottom."
Amazon.com, Inc. (Nasdaq: AMZN - news)
Long-Term Attractive from Buy
Lauren Cooks Levitan, eTailing
``Amazon.com reported lower-than-expected revenues for the first time in
their history as a public company," said Levitan. "While operating
efficiencies, momentum in new categories and customer growth were positive
data points, we expect that these successes will likely be overshadowed by a
lack of clarity and explanation for the sales disappointment. We are revising
our estimates and changing our rating to Long-Term Attractive given our near-
term concerns following second quarter's revenue shortfall. However, we
remain optimistic about Amazon's long-term prospects and look for improved
visibility on sales and profitability trends as an opportunity to get more
aggressive with our rating."
Estimate Change:
JDS Uniphase Corporation (Nasdaq: JDSU - news)
2001 EPS: $0.69 from $0.65
Buy
Arun Veerappan, Communication Components/Semiconductor Devices
``JDS Uniphase reported fourth quarter revenue of $524 million, $39 million
ahead of our estimate for the quarter," said Veerappan. "We expect the
company to grow proforma revenues 17 percent sequentially in the September
quarter. Furthermore, given that the company is capacity constrained, we are
impressed by the company's goal to ramp manufacturing capacity by four times
in any given 18-month interval. We continue to believe that JDS Uniphase is
the leading supplier of optical components and as such, rate the stock a Buy."
Quest Software (Nasdaq: QSFT - news)
2001 EPS: $0.25 from $0.23
Buy
Dane Lewis, Network Storage Systems and Software
``Quest Software reported second quarter results after the close on July
26," said Lewis. "Revenues of $36.7 million marked the third straight quarter
that the company accelerated both license and total revenue growth. The
strength of the second quarter results was indicative of the demand for the
entire suite of Quest products. With the continued strength in operating
results, high quality of customer base, positioning of importance within
corporate IT budgets and outlook for 2H:00, Quest remains one of our top names
across our entire universe."
Rating Change:
Tenet Healthcare Corp. (NYSE: THC - news)
Buy from Long-Term Attractive
Sheryl Skolnick, Health Care Services
``Tenet reported a fourth quarter with strong results. We are raising our
rating to a Buy," said Skolnick. "In our view, outperformance of expectations
three quarters in a row has built momentum for confidence in the 2001 fiscal
performance. For the first time in four years, the company does not expect
any negative Medicare impact to the 2001 fiscal year. Pricing should remain
stable with the possibility for some reimbursement relief, in our view, which
would provide upside to our 2001 fiscal year estimates. Tenet is consistently
making headway toward becoming a higher-margin, better cash-flow generating
investment than in the past. The company is getting geared up to enter the
acquisition market in order to secure growth for the 2002 fiscal year."
Robertson Stephens maintains a market in the shares of Syntel Inc., Amazon.com, Inc., Quest Software and JDS Uniphase Corporation and has been a managing or comanaging underwriter for or has privately placed securities of Syntel Inc. and Quest Software within the past three years.
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