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Technology Stocks : Sycamore Networks Inc-(SCMR) -- Ignore unavailable to you. Want to Upgrade?

To: James Lee Baldwin who wrote (1879)	2/14/2001 9:29:13 AM
From: ayahuasca	Read Replies (1) \| Respond to of 2249

The following is the sort of laughable stuff we get from the analyst crowd. The title the story very negatively and the tone follows, though there is no substance. This guy at Lehman shouldnt have been carrying a $150 target at this point to begin with. Now that it's 'slashed' to $75, I wonder what the recommendation will be. I mean can a target that is 300% higher thanthe cirrent price worth anything other than a strong buy? Lehman Brothers slashed its price target on Sycamore Networks (SCMR:Nasdaq - news) this morning to $75 from $150, but its shares defied the cut and climbed in pre-open trading. Stocks of the Chelmsford, Mass., software company recently rose $1.69, or 7.48%, to $24.25 in Island pre-open trading, up from its previous closing price of $22.56 on the Nasdaq. No further details of analyst Steven Levy's move were immediately available. Yesterday, Sycamore reported second-quarter earnings that beat analysts' expectations by a penny, helped by its top-line growth

To: James Lee Baldwin who wrote (1879)	2/14/2001 4:09:07 PM
From: Maverick	Respond to of 2249

RS ups 01 rev,EPS, maintains BUY quote.fool.com Sycamore Networks, Inc. (Nasdaq: SCMR) $22.56 Buy F2001E EPS: $0.24, up from $0.23 F2002E EPS: $0.35, down from $0.37 Paul Johnson, Communications/Networking "Sycamore reported financial results for their fiscal second quarter (January) which exceeded our and Street expectations," said Johnson. "Revenues of $149.2 million and pro forma EPS of $0.06 were above our and Street estimates of $138.0 million and $0.05, respectively. Sequential revenue growth during the quarter was driven by continued strong acceptance of the company's products at Williams Communications, as well as two unnamed "10% customers" in the quarter. The company also announced the addition of 2 new customers during the quarter, Vodaphone and CoreExpress. Sycamore shipped to 14 customers in the quarter, as well as 1 international distributor. Though Sycamore beat our estimates for the January quarter, we are making only minor changes to our forward estimates. Our Fiscal 2001 revenue and EPS estimates are being increased slightly due to the upside in the January quarter, with lower gross margin expectations being offset by a lowered share count. For Fiscal 2002, we are leaving our revenue estimates unchanged, and slightly reducing EPS due to lowered gross margin estimates from a change in expected product mix. We are maintaining our Buy rating on the stock."

To: James Lee Baldwin who wrote (1879)	2/14/2001 4:20:45 PM
From: Maverick	Respond to of 2249

CSFB maintain BUY, PEG < 1 Excerpts follow 2/14/01 SN8000 still dominates product mix; future largely hinges on switching products: Once again the SN8000 optical transport node accounted for the bulk of revenue in the quarter. As of the end of January, more than 700 nodes have been deployed in 12 carrier networks. We estimate aggregate contribution from the SN6000 and SN16000 was less than 15%. The Company has not yet recognized revenue from the SN10000 and SN3000/4000 products. New product development initiatives appear to be on-track. The SN16000 switch is arguably the Company's most important product. We believe its 512 x 512 size, optical backplane, STS-1 grooming capabilities (which should be available by end of Q3), and transparent upgrade path should position the 16000 product well. However, competition in this space continues to intensify from Ciena (CIEN/$69/B), Tellium, Corvis (CORV/$15/B) (Edge Switch and Optical Switch), and in the future Brightlink, Cinta, Nortel (NT/$30/B), Lucent (LU/$14/LTB), Calient, and others. Progress with the SN3000/4000 and SN10000 also appears to be solid. Deferred revenue from SN3000 shipments should flow through this quarter, but competition in this market from Cisco (Cerent) (CSCO/$29/B), Ciena (Cyras), Redback (Siara) (RBAK/$31/NR) and others is tightening. Management is optimistic about the SN1000 and expects sales to exceed SN8000 sales during FY:02. Given the technical hurdles associated with ultra long-haul transmission and the nature of that market, we believe the sweet spot for this product may prove to be "standard" long-haul applications. Awaiting traction with incumbents: During the quarter Sycamore continued to expand its customer base, but we're still awaiting contracts from IXCs and (later) ILECs. The Company recognized revenue from fourteen service provider customers and one international reseller (up from ten and one, respetively, in the prior quarter). Williams (WCG/$16/NR), with greater than fifty-percent of sales, was again the largest customer. Two other customers accounted for more than ten-percent. In light of Williams' comments today at its analysts meeting indicating this carrier will reign in capex this year, we think upside at this customer for Sycamore may be limited. However, the relationships with 360Networks (TSIX/$12/NR) and a number of other customers remain strong. However, the issue remains Sycamore's ability to add new significant new customers, especially as the Williams contract winds down. Lowering estimates to reflect lower end of guidance range. To reflect the lower end of management's guidance range we are adjusting our estimates. New estimates are $604M/0.23 for FY:01, and for FY:02 we are going from $1057M/0.37 to $1005M/0.32. At current levels, Sycamore clearly trades at a discount to most of its peers. Moreover, even using our revised estimates, the stock trades at a P/E-to-growth of less than one. Clearly at this valuation, the stock has room for appreciation should visibility improve. We are maintaining our BUY rating on SCMR shares.