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Flextronics sees record growth
By Tim Eaton, CBS MarketWatch
Last Update: 4:01 PM ET Sept. 10, 2001
SAN FRANCISCO (CBS.MW) -- Even as the profit picture darkens for electronics contract manufacturers, Flextronics International Inc. said Monday that it expects record revenue growth of 40 percent this year as the company progresses with signing on new customers.
"We're confident because this year's better, and this quarter is better from a revenue perspective," Michael Marks, the company's president, told investors at a conference sponsored by Banc of America Securities.
Singapore-based Flextronics' revenue totaled about $12 billion in its last fiscal year.
"We're bullish because of the business we have added," Marks added.
Marks also said, however, that the company doesn't expect the industry's economic conditions to return to normal for another six to 12 months.
Earlier, Goldman Sachs scaled back its earnings expectations for nine contract manufacturers, which make electronics gear for large technology companies. The investment firm said it now projects Flextronics, which earned 87 cents a share last year, will make 72 cents a share this year, down from its previous forecast of 73 cents.
Marks said that Flextronics sees growth opportunities in Europe and Japan, saying the company hopes to take over some of the manufacturing work that cost-cutting electronics giants like Sony and Fujitsu won't be able to handle in-house.
Shares of Flextronics (FLEX: news, chart, profile) closed down 47 cents at $17.96 on volume of 14 million.
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Calpine to top 2001 profit target
By Tim Eaton, CBS MarketWatch
Last Update: 3:58 PM ET Sept. 10, 2001
SAN FRANCISCO (CBS.MW) - Calpine said Monday it expects the company to report per-share earnings that will exceed analysts' consensus expectations for 2001.
Calpine (CPN: news, chart, profile) CEO Ron Walter said he expects the company to report earnings above $2.02 a share, the analysts' consensus compiled by Thomson Financial/First Call.
Speaking at the Banc of America annual investment conference in San Francisco, he said the company's previously announced power production plans are on track. Calpine plans to produce 70,000 megawatts by 2005, up from 6,000 today. Next year, he expects to produce 22,000 megawatts by 2002.
The increase in power will mostly come from development in areas like the Pacific Northwest, California and Florida, while a small percentage will come through acquisitions. By 2005, 12,000 megawatts of the power will be produced in California.
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JDS: Restructuring on track
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 4:48 PM ET Sept. 10, 2001
SAN FRANCISCO (CBS.MW) - JDS Uniphase said Monday that restructuring plans are still on track at the fiber optic giant.
CFO Anthony Muller repeated a June update about the company's ongoing corporate restructuring. Speaking at the Banc of America Securities annual investment conference in San Francisco, he said the company has incurred costs of $500 million as of June and expects additional costs of $400 million.
The cost savings total $300 million so far and additional savings of $400 million are expected.
He added that "despite a precipitous decline in its revenue base, JDS remains one of the largest companies in the networking equipment sector."
As well, the CFO said during a break-out session at the conference that the company has no immediate plans to buy back its stock.
Shares of JDS Uniphase (JDSU: news, chart, profile) lost 22 cents to $6.21.
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Ciena counting on new products
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 1:10 PM ET Sept. 10, 2001
SAN FRANCISCO (CBS.MW) - Ciena said Monday it's counting on a new generation of products to fuel growth at the company.
"The bottom line is to increase service provider profits," Ciena's (CIEN: news, chart, profile) Elizabeth Perry, senior vice president of core switching, said at the Banc of America Securities conference in San Francisco.
As for the current spending environment, she said global capital expenditure growth for the year is estimated at 6 percent. The U.S. is expected to decline 13 percent; Asia should increase 17 percent; and Europe should grow 24 percent.
"Traffic is still there, demand is still there, and we are going to see growth," she said.
Ciena shares lost 97 cents to $13.18 amid a broader decline in telecommunications and networking shares.
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Check Point's small biz, consumer aim
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 3:15 PM ET Sept. 10, 2001
SAN FRANCISCO (CBS.MW) - Security software firm Check Point Software said Monday it's increasingly focused on small businesses and consumers.
President Jerry Ungerman, speaking at the Banc of America Securities annual investment conference in San Francisco, added that there's been no change in the company's business on a geographic basis so far this quarter.
Ungerman said the company expects growth will come as businesses extend corporate network security systems to partners and suppliers.
He also said 90 percent of the company's research and development efforts take place in Israel. R&D costs Check Point 8 or 9 percent of revenue, which Ungerman said represents a discount to what R&D would cost domestically. He said engineers in Israel cost the company half as much as they do in the U.S.
Shares of Check Point (CHKP: news, chart, profile) rose $2.33, or 7.7 percent, to $32.90.
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