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Technology Stocks : Efficient Networks Inc - (Nasdaq- EFNT) -- Ignore unavailable to you. Want to Upgrade?

To: LLCoolG who wrote (376)	8/22/2000 10:53:35 AM
From: 2MAR$	Respond to of 675

Dallas-Based Efficient Networks Hurt by DSL Slowdown (bottomed here?) Aug. 22 (The Dallas Morning News/KRTBN)--Efficient Networks Inc.'s stock lost almost 11 percent of its value Monday on concerns that its biggest customer was seeing a slowdown in its rollout of digital subscriber lines. The Dallas-based DSL equipment maker ended the day at $43.97, down $5.41. The stock is down 39 percent since July 3, when it was trading at $72.13. The drop followed a Credit Suisse First Boston report that attributed the recent slide in Efficient's stock to slowing of DSL deployment by SBC Communications Inc., which accounts for 38 percent of Efficient's business. DSL is a technology that allows carriers to speed up the transmission of data over telephone lines. Efficient is a leading supplier of DSL equipment. "For at least a temporary period there was a lowered DSL installation rate, which allowed inventories ... to build up," said Syed Haider, an analyst at Frost Securities in Dallas who has a "strong buy" rating on the stock. "Efficient has a large enough customer base that ... it will probably not affect their operations." SBC said late Friday that its DSL installation rate was slower in the first half of the third quarter as it transferred the business to a new subsidiary, SBC Advanced Solutions Inc. The company still plans to meet its target of 1 million DSL lines by the end of 2000. It currently has about 435,000 lines in 13 states. Credit Suisse estimated that DSL installations averaged 1,500 a day in the last six weeks, compared with 4,000 a day at the end of May. Efficient said the SBC slowdown won't affect its financial performance. Jill S. Manning, vice president and chief financial officer, said the company will break even for the first time in its seven-year history in the third quarter. "All we can do is focus on our business," she said. "We can't watch the stock market every day." Ms. Manning said that although DSL technology has been around for years, carriers have only recently started mass marketing the service. "Everyone is going to have a little hiccup," she said. "People are just panicking a little too much for no reason." By Vikas Bajaj -0- To see more of The Dallas Morning News, or to subscribe to the newspaper, go to dallasnews.com (c) 2000, The Dallas Morning News. Distributed by Knight Ridder/Tribune Business News. * end of story