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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (41380)	11/15/2000 11:48:42 AM
From: Softechie	Respond to of 57584

*CSFB on JUNIPER NETWORKS (JNPR: $199.60) 10/13/00 Outstanding Q3:00 Results; Boosting Estimates Annual EPS Prev. EPS 12/01E 0.80 0.47 12/00E 0.47 0.32 12/99A (0.05) NA Rating: STRONG BUY 12-Mo. Target: $250 JNPR posted Q3:00 EPS of $0.17 on sales of $201.2M, outpacing our $0.09 EPS and $145M sales estimates; Boosting Q4:00 EPS to $0.18 from $0.11 and 2001 EPS to $0.80 from $0.47; Increasing Q4:00 sales forecast to $245M from $185M and 2001 sales forecast to $1.27B from $975M. Top-line strength a function of M160 and M20 product ramps; Customer list hits 136 up from 113 sequentially (incl cust through distributors total count is >225) led by Metromedia Fiber Network, Qwest Communications, Cable & Wireless, and MCI WorldCom. We estimate visibility entering Q4:00 and into 2001 is excellent reflecting differentiation (software and hardware) and high-end focus of JNPR product portfolio; Competitive environment remains the same with limited competition beyond the company's traditional competitor CSCO. Balance sheet excellent with cash and ST investments of $1.1B; Accounts receivable DSOs in-line at 53 days up from 49 days in Q2:00; Deferred revenue equaled $34.8 million up from $30 million sequentially reflecting timing of customer acceptance of the M160. View JNPR shares as a core holding for aggressive growth oriented investors desiring exposure to the communications equipment sector; Rate shares STRONG BUY; 12 month price target $250.