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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: lupaka who wrote (5073)	9/24/2000 11:22:56 AM
From: lupaka	Read Replies (1) \| Respond to of 5650

Article on Xpedior's results affecting P6 September 22, 2000 The Slowdown Continues Last week's Xpedior revenue shortfall affects PSINet. By Bernice Napach, Sm@rt Partner Not a week goes by lately without at least one e-services firm issuing a warning about poor future earnings. The latest doomsayer is PSI Net, an Ashburn, Va., provider of global e-commerce infrastructure, IT solutions, and other Internet services. Last Friday morning, the company announced that it has lowered revenue expectations for the second half of 2000 due to softness in the carrier-access business, transactions-solutions business and a revenue shortfall at Xpedior-80 percent of which it owns. PSINet anticipates revenues of $920 million to $960 million in the second half and $500 million cash on hand at year's end. But that cash coffer is $600 million less than the company claims it needs to expand its Web-hosting business in 2001. The announcement sent PSINet shares skidding to a new 52-week low, near $13 a share. IXL Enterprises, which announced its expected revenue shortfall the previous week, also fell to a new 52-week low. The company was hit with several class-action investor lawsuits alleging that executives made false and misleading statements about operations and financial conditions in order to support the price of iXL shares. Other losers in our index last week include USinternetworking, Lante and US Interactive (USI), whose CEO, Stephen Zarrilli, resigned suddenly. He was replaced by board member William Jennings. Chase H&Q analyst Dirk Godsey says the change in the executive suite "may signal some turbulence ahead," and he wouldn't be surprised if USI fell short of performance estimates. Amid those declines, however, some Web consultants soared. Scient gained 32 percent, boosted by an upgrade to a strong buy from William Blair & Co. Analyst Matthew Litfin said Scient's management has indicated business is good. August was stronger than July, and demand for new projects into Q4 is picking up considerably. The upgrade stands out because the company recently was downgraded by many analysts. "Scient has been misclassified," says Litfin, who includes the integrator in the same universe as leaders Diamond Technology, Proxicom and Sapient. Scient shares also may have been helped by the company's plans to repurchase up to $25 million shares from time to time over the next year. Other gainers included Inforte, which says it remains comfortable with analysts' Q3 revenue and earnings estimates, and Razorfish. zdnet.com