To: mishedlo who wrote (10179 ) 2/14/2001 5:25:13 PM From: mishedlo Read Replies (2) | Respond to Here are my thoughts on SCMR. They rallied but were earnings really any good?Sycamore Chief Executive Daniel Smith said he sees ``a great deal of uncertainty' over the next two quarters as telecommunications carriers cut capital expenditures for building high-speed networks. Shares of networking giants such as Cisco Systems Inc and Nortel Networks Corp also have been hammered due to the telecom spending slowdown. Jewels said the uncertain economic climate has made forecasting the firm's gross margins increasingly more difficult. Gross margins are expected to decline to 45 percent for the rest of the year, a drop of about 2 percentage points from the second quarter, Jewels said. Sycamore also left its 2002 revenue growth target of 65 percent to 72 percent unchanged. The company guided analysts to look for 2002 earnings at the low end of their consensus range of 32 cents to 39 cents per share. Williams Communications Group Inc accounted for half of the company's revenue in the second quarter. But Sycamore said it has diversified by adding other customers. ``Vendor financing is a competitive reality,' Spalding said. ``If you don't offer it, it is hard to compete with larger companies with larger resources.'
