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To: SusieQ1065 who wrote (168)	6/20/2001 4:11:27 PM
From: SusieQ1065	Read Replies (1) \| Respond to of 208838

Reuters Finance News AOL Shares Up After Comments on Ad Sales Jun 20 1:57pm ET By Reshma Kapadia NEW YORK (Reuters) - The shares of AOL Time Warner Inc., the world's largest Internet and media company, rose more than 3 percent Wednesday after Chief Executive Gerald Levin told Reuters advertising revenues have stopped declining. "Although it is stating the obvious, the first thing that happens before a pick-up is stabilization, so in a market in which most things are continuing to deteriorate, even stabilization is viewed as a significant positive," Merrill Lynch analyst Henry Blodget said, adding the comments could "absolutely" be the reason for the stock being up. AOL Time Warner shares rose $1.52 to $51.36 on the New York Stock Exchange. The shares are off about 11 percent from year-earlier levels, but outperforming many of its Internet rivals. "I'm not sure there is an upturn yet, but I do think advertising revenues are stabilizing," Levin told Reuters in an interview at the Cannes International Advertising festival. "We haven't changed our (2001) estimates". Advertising spending has declined amid the dot-com shakeout and a slowdown in the U.S. economy, weighing on many Internet and media companies. "The question then becomes, 'show how long you have to wait before stabilized becomes growing again?"' Blodget added. He added that the shares of other companies, such as Oracle Corp. , also rose after executives said they may have seen bottom. At a time when companies have been cutting growth targets and warning about prospects, such comments have cheered investors. Salomon Smith Barney analyst Lanny Baker said AOL Time Warner, with its stable of assets that include Time and Fortune and 24-hour cable network CNN and the WB, has been better insulated from the decline in ad spending than some of its peers. "I wouldn't run with that one comment to use that as the linchpin that the ad economy has turned around," Baker said. "If ad trends are stabilizing, I think AOL Time Warner will be able to say that long before second and third tier companies will be able to." Levin also told Reuters no further job cuts or increases in AOL prices were needed to meet 2001 targets set earlier this year at the completion of $106.2 billion merger of AOL and Time Warner. The company set targets of $11 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) and $40 billion in revenues in 2001.

To: SusieQ1065 who wrote (168)	6/20/2001 4:11:59 PM
From: Frederick Langford	Respond to of 208838

With B2B coming out tomorrow the speculation will reign, however stocks like PMCS have BIG problems with their customers like MOT, COMS, CSCO, LU. However high they run it will be a gift for boppers. Fred

To: SusieQ1065 who wrote (168)	6/20/2001 4:14:54 PM
From: Frederick Langford	Read Replies (1) \| Respond to of 208838

Communication chip stocks down as Goldman cuts estimates By Tom Wolf St. Louis, June 20 (BridgeNews) - Shares of several communications chip makers were lower in pre-market trade Wednesday after Goldman Sachs cut earnings estimates for the companies. * * * Goldman lowered its estimates on Applied Micro Circuits Corp., PMC Sierra Inc., Vitesse Semiconductor Corp. and Conexant Systems Inc. citing deteriorating demand and bloated inventories, according to a research note issued Wednesday. Applied Micro was recently off 38 cents to 13.12; PMC Sierra was down 85 cents to 24; Vitesse was lower by 28 cents to 16.74; and Conexant was down 20 cents to 7.40. "With several recent earnings warnings from key customers and still high inventory levels, we believe the downturn will cut deeper and last longer than current estimates suggest," Goldman Nathaniel Cohn said in the research note. Cohn sees the companies experiencing a sequential decline in revenue in the third quarter. Estimates for fiscal 2002 for Applied Micro were cut to a loss of 5 cents a share on revenue of $233 million from a gain of 5 cents on sales of $305 million. Cohn expects Applied Micro to post a loss of a penny on revenues of $60 million in the current quarter. The First Call consensus estimate is for breakeven. PMC Sierra estimates for fiscal 2001 were trimmed to a loss of 10 cents a share on revenues of $392 million from a gain of 6 cents on sales of $454 million. Goldman expects the company to lose 4 cents in the current quarter against the First Call estimate of a penny loss. Goldman sees Vitesse earning 33 cents on $439 million in fiscal 2001, down from the earlier estimate of 40 cents on sales of $467 million. The estimate for the current quarter is for a penny gain on revenue of $80 million. The First Call estimate is for a 3 cent profit. Conexant 2001 estimates were cut to a loss of $1.30 on revenue of $1.05 billion from a loss of $1.20 on sales of $1.1 billion. Goldman expects a loss of 44 cents in the current quarter compared with the First Call estimate of a 43 cent loss. End