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Technology Stocks : Opsware, Inc. (OPSW) -- Ignore unavailable to you. Want to Upgrade?

To: DanielleC who wrote (98)	8/31/2001 10:02:09 AM
From: DanielleC	Read Replies (2) \| Respond to of 136

This one sure seems like a sleep to me. Anyone else follow??? Seems like the potential is HUGE: SUNNYVALE, Calif. (CBS.MW) - Loudcloud thundered ahead better than 22 percent in early trading Thursday after analysts rained praise on the Internet infrastructures service company. The shares couldn't keep up the momentum, no thanks to the broader markets, but still ended the session up notably - 12 percent, or 27 cents, to $2.47. Analysts from Morgan Stanley and Adams Harkness both lifted their ratings recommendations to "outperform" and "buy," respectively. They were buoyed after the fledgling company reported a second-quarter net loss Wednesday that doubled from the like period a year ago but bowled over analysts with substantial revenue growth and the pro forma loss that was substantially narrower than expected. FRONT PAGE NEWS U.S. markets looking to break four-day losing streak China bars CFSB from future deals - report Novellus slides on midquarter report Hitachi to cut 14,700 jobs, sees loss Shares of the fledgling company (LDCL: news, chart) have been on a joy ride this week, rising 90 percent by the close of trading Thursday. It hit an intraday high of $1.81, making for a 116 percent ascent for the week. Shares jumped 34 percent Tuesday after the firm said it was in multi-year, multi-million deal with Qwest Communications. See full story. "We've seen our business bottom and our outlook is improving," crowed Chairman Marc Andreessen, a co-founder Netscape, during a conference call with analysts. That was good news to Morgan Stanley analyst Jeffrey Camp, who has a $6 price target on the stock. "Second-quarter orders marked a bottom," Camp wrote in a note to clients, "and demand and churn have started to increase again. "This was one of two critical developments needed to advance Loudcloud shares," he said. For the quarter, Loudcloud said it lost $76 million, or $1.19 a share. But excluding restructuring charges, Loudcloud recorded a loss of $45.8 million, or 72 cents a share. That was substantially below the 88-cents-a-share average that analysts polled by Thomson Financial/First Call reached. Revenue came in higher than expected as well, at $14.1 million vs. Wall Street's forecast of $13.7 million. Last year, the company's pro forma and net loss was $34.5 million, or $2,647.32 a share (based on only 39,000 common shares compared with 64 million in the just-concluded quarter). Loudcloud ended the quarter with $170 million in cash and cash equivalents. The company's goal is to reduce its usage of cash to $18 million to $20 million per quarter by next year's second quarter. The company is on track to break even in the calender year 2003. For the third quarter, the Sunnyvale, Calif.-based company said revenue should stay about the same as the second quarter while operating and net loss should come in around $44 million to $45 million, or 68 to 70 cents a share. Analysts had forecast $14.27 million in revenue and an 81-cent loss. For the full fiscal year, the company confirmed its previous outlook of $53 million to $57 million in sales. Analysts had chimed in with a consensus estimate of $54.7 million. Loudcloud also expects a loss before interest, taxes, depreciation, amortization, noncash stock compensation and restructuring charges of $118 million to $120 million, down from prior estimates of $129 million to $132 million. Executives said that insiders wouldn't be selling shares when the IPO lock-up period ends. Jennifer Waters is the Chicago bureau chief for CBS.MarketWatch.com. Deborah Adamson is a reporter for CBS.MarketWatch.com in Los Angeles.