Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (373)	10/21/2000 5:05:54 AM
From: 2MAR$	Read Replies (1) \| Respond to of 762

EFNT ($39) exceeds expectations, turns first profit Investors cheer results, send battered shares higher By Lisa Sanders, CBS.MarketWatch.com Last Update: 4:06 PM ET Oct 19, 2000 NewsWatch Latest headlines DALLAS (CBS.MW) -- Efficient Networks jumped 33 percent Thursday, one day after the DSL provider exceeded Wall Street first-quarter expectations by a wide margin on record revenue and its first quarter of operating profit. Shares of Efficient added $9.44 to close at $37.94 on heavy volume of 6.8 million. Efficient (EFNT: news, msgs) said it earned $6.1 million, or 10 cents a share, which compares to the penny a share expected by analysts polled by First Call. A year ago, Efficient lost 20 cents a share. Meanwhile, revenue grew to $127.2 million, an increase of 864 percent over the revenue of a year ago as demand for the company's products continued to grow. Efficient said its sequential revenue growth rate over the past 12 months is more than 76 percent per quarter. Shares of Efficient took an enormous beating Wednesday before the announcement as DSL providers Covad and Copper Mountain disappointed Wall Street. The stock closed down 37 percent, or $16.56, to $28.50 -- a new 52-week low. Late Tuesday, Covad (COVD: news, msgs), which is a customer of Efficient, reported losses per share for the third quarter of $1.22, wider than the 47 cents reported a year ago and 3 cents worse than what Wall Street expected. Covad blamed the miss on the failure of its smaller ISP customers to pay their bills. Today on CBS MarketWatch Stocks notch first weekly gain in 7 weeks United Technologies, Honeywell end acquisition talks After Hours: Honeywell, GE and more Icahn holds discussion with Visx Due Diligence: CMGI stocks rides waves of the Internet sector More top stories... CBS MarketWatch Columns Updated: 10/20/2000 5:14:10 PM ET Efficient makes digital subscriber line customer premises equipment, such as modems and routers, which enables high-speed Internet access over copper telephone lines. Copper Mountain (CMTN: news, msgs) makes digital subscriber line access multiplexers (DSLAM), which allows the DSL signal to either be transmitted to the Internet or to the telephone network. The company does make CPE on a limited basis. While Copper Mountain actually came in a penny ahead of Wall Street expectations for the quarter, it lowered earnings estimates for the fourth quarter on the expectation that competitive local exchange carriers (CLECs) would cut funding. Copper Mountain's exposure to CLECs is almost 100 percent, while Efficient's is only about 20 to 25 percent, said Syed Haider, an industry analyst at Frost Securities. "The difference between us and Copper Mountain is that they're a DSLAM and we are a provider of CPE," Jill Manning, Efficient's CFO told CBS.MarketWatch.com. "So there's not a lot of overlap between our customer base and their business. "We interoperate with their DSLAM and almost every other DSLAM on the market today, but we feel we have a broader product offering and a broader customer base," Manning said.