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To: zbyslaw owczarczyk who wrote (10301)	2/1/2001 3:59:15 AM
From: elmatador	Respond to of 12823

Tut Systems reports revenue drop, job cuts By Reuters Special to CNET News.com January 31, 2001, 9:00 p.m. PT Tut Systems, which provides broadband services for large office buildings, on Wednesday reported a worse-than-expected fourth-quarter loss and said that it would cut its work force by 10 percent effective immediately. The loss came as revenues fell below even the Pleasanton, Calif.-based company's own lowered forecast, prompting a 19 percent drop in its shares in after-hours trade to $6.37 on the Instinet system from a Nasdaq close of $7.88. In a conference call with analysts, company officials said the fourth quarter loss was driven by a sudden slowdown in the telecommunications industry and tighter financing. President and CEO Salvatore D'Auria said he expected a "rocky six months ahead" as the industry goes through a "cycle of uncertainty." Analysts said the company would be buffered by its $102 million dollar cash holdings, but will need to re-examine its business model as the shakeout continues for its customers. "Their customers, building local exchange carriers, aren't getting more capital, are burning through the capital they raised and are getting unfavorable terms with their customers, mainly REITS," said Clifton Gray, communications equipment analyst with Kaufman Brothers. "They have some time to reassess their business and turn things around, although in terms of the next two quarters, things look bleak," he said. Tut Systems, which had an unbroken record of double-digit sales growth as a public company, should return to quarterly revenue growth later this year as customers adjust to tighter credit terms, D'Auria said. "The problem in our marketspace has never been demand," he said. Revenues, profits undershoot Net revenues for the quarter fell to $5.9 million and the company recorded an operating loss, excluding acquisition related charges, of $65.5 million or $4.12 per share. Revenues were below the range the company had offered in early January, when it cut its own forecast by 60 percent. Earnings were also sharply below the average forecast for a loss of 49 cents per share, according to First Call/Thomson Financial. Tut Systems also said that it had increased its allowance for doubtful accounts by $22.1 million, recorded a $3.1 million loss on equity investments in its customer base. The company also disclosed that its balance sheet included $9.2 million in commercial paper issued by Southern California Edison, which is now in default. The stock had already lost almost 83 percent over the past 12 months and 11 percent since the start of the year before today's after-hours slide. Founded in 1991, Tut Systems raised more than $39 million in venture capital and corporate financing, including funding from Microsoft, Compaq Computers and Intel. Story Copyright© 2001 Reuters Limited. All rights reserved.

To: zbyslaw owczarczyk who wrote (10301)	2/1/2001 7:20:24 PM
From: zbyslaw owczarczyk	Read Replies (3) \| Respond to of 12823

During the quarter, Sprint continued to expand its broadband capabilities to new markets. By the end of 2000, Sprint had installed DSL equipment in more than 950 central offices in 31 markets. By the end of 2001, DSL will be in more than 2000 central offices in 86 markets, which will enable the company to reach 18 million households and 3 million business locations across the country. biz.yahoo.com --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------- Verizon added 190,000 DSL lines in the fourth quarter, 46 percent more than in the third quarter. The 540,000 lines in service at the end of the year represent an increase of more than 500 percent over the number in service at the end of 1999. * Verizon Online, the company's Internet service provider, ended the year with approximately 847,000 subscribers, a 21 percent increase since the end of 1999. * Verizon equipped approximately 500 central offices for DSL in 2000 and ended the year with approximately 1,850 equipped offices, 30 percent more than a year ago. An average of 60 percent of the access lines in those offices qualify for DSL, making the service available to 45 percent of Verizon's access lines and households, nearly 29 million and 14 million respectively. biz.yahoo.com --------------------------------------------------------------------------- ------------------------------------------------------------- this means more FTTN Zbyslaw