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To: H James Morris who wrote (124304)	4/29/2001 8:42:01 PM
From: Mark Fowler	Respond to of 164684

I got stop out of that i don't remember at what price. I think i lost a couple grand on that one. they had declining margins and lower customer count or wins on the last report and it's pressure on Cien, however i'm above water on that. I have to watch Cien closely we'll see what happens in May; it has some support at $ 48. Jim Btw, careful of that telecom equipment area you go in there i'd stick with right leaders.

To: H James Morris who wrote (124304)	4/29/2001 8:58:50 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

"If you believe BW reporter Steve Hamm, it's "unlikely that Meeker will resume her reign as queen of anything in the near future." After tallying that nine of the 21 stocks Meeker recommended now trade below their IPO prices, Hamm quoted a finance professor calling Meeker and the other Net analysts "an incredible embarrassment to the investment-banking industry." " biz.yahoo.com

To: H James Morris who wrote (124304)	4/29/2001 9:12:25 PM
From: Mark Fowler	Respond to of 164684

redherring.com

To: H James Morris who wrote (124304)	4/29/2001 10:35:16 PM
From: Mark Fowler	Respond to of 164684

Corvis delivered Q1:01 earnings per share of $(0.07), in-line with our estimate and First Call consensus, and revenues of $84 million which were 40% higher than our $60 million estimate and reflected 30% sequential growth. We are reducing our Q2:01 revenue projection to $55 million from $65 million and EPS estimate to $(0.08) from $(0.07). However, for the full year, our 2001 EPS forecast of a loss of $(0.21) improves from our previous $(0.23) estimate, on unchanged revenues of $320 million. We are increasing our 2002 EPS estimate to $0.10 from $0.05 on unchanged revenues of $550 million. In the March quarter, Corvis recorded sales of $66 million from the commercial deployment of both all-optical switching and core long haul network equipment to Broadwing Communications which is currently running live commercial traffic, as well as $18 million in revenues from Williams' successfully completed trial. The Broadwing all-optical network has been running live commercial traffic and employs Corvis' all-optical switch. Corvis continues to expect to recognize revenue from Broadwing in all four quarters of 2001. Gross profit margins of 37.1% reflected a modest decline from Q4:00's 38.2% profit margin, and were 290 basis points below our 40% our estimate for the quarter. We expect gross margins will decline over the course of 2001 to exit the year at 30%, as the company's sales patterns will reflect a larger proportion of lower-margin chassis initially, followed by revenues on line cards carrying a significantly higher margin profile. Management noted a more competitive pricing environment and that the company felt pressures both from existing and prospective customers. Research and development expenditures of $40.9 million were 15% higher on an absolute basis than our projected $35.4 million, but at 48% of sales, were lower than our projection of 59%. Sales and marketing expenses of $15.4 million were above our $12.6 million estimate, but represented a smaller percent of revenues (18.3% of revenue versus our expected 21%). G&A expenses equaled $11 million, below our $12 million forecast. Management commented that the company intends to contain operating expenses in response to pricing pressures and the timing of revenue recognition, and in order to meet year-end financial goals and target of recording an operating profit in H1:02. Our revised model reflects a reduction in operating expenses of $58 million over the balance of the year, which more than offsets the reduction in gross profit margins. Consequently, our current 2001 earnings per share estimate improves by two pennies and our 2002 estimate reflects a $0.05 improvement over our previous model. Employees totaled 1,625 at the end of the quarter, up from 1,452 in the end of Q4:00. We expect this number will be reduced, given the operating expense reductions. Balance Sheet Solid Corvis completed the quarter with cash and cash equivalents of $877.8 million, reflecting a large portion of cash from the sale of equity in Corvis' public offering in July 2000. In terms of working capital management, Corvis recorded accounts receivable of $63.7 million. According to our calculations , accounts receivable days sales outstanding totaled 68 days and inventory turns equaled 0.9. CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST BOSTON CORPORATION