Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Corvis Corporation (CORV) -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (1312)	2/7/2002 8:32:07 PM
From: SemiBull	Respond to of 2772

Corvis sees slow quarter without Qwest COLUMBIA, Md., Feb 7 (Reuters) - Network gear maker Corvis Corp. (NasdaqNM:CORV - news) on Thursday posted a wider fourth-quarter loss amid a harsh downturn in the market for telecommunications equipment the company projected would continue in the current quarter. Excluding charges, Corvis reported a loss of $39.9 million, or 11 cents a share in the quarter ended Dec. 29, compared with a loss, excluding charges, of $23.9 million, or 7 cents a share, a year earlier . The loss was in line with Wall Street expectations with analysts' estimates ranging from 10 cents a share to 13 cents a share, according to research firm Thomson Financial/First Call. In net terms, the loss was $374.8 million, or $1.05 per share, compared with a net loss of $89.7 million, or 27 cents per share, a year earlier. That included charges of $303.4 million, including $117.4 million for write-downs of excess and obsolete material, excess purchase commitments, and discontinued products, and $60 million related to job cuts, facility consolidation and write-downs of idle equipment. Corvis also posted a $122.4 million charge for the write-down of goodwill from an acquisition and a $3.6 million charge to mark down equity investments. REVENUES SEEN FLAT TO DOWN Revenues were $15.2 million, down 67 percent from $46 million a year ago, and the company forecast flat to declining revenues for its fiscal first quarter. Corvis President and Chief Executive David Huber told analysts the market for network equipment makers remains challenging after a year that was ``perhaps one of the more difficult years in the history of telecommunications.'' Corvis shares closed on Thursday at $1.61, down 5 cents, or 3 percent -- and off 91.3 percent over the past 52 weeks. Corvis has suffered along with Qwest Communications International Inc. (NYSE:Q - news), one of its customers and the dominant local telephone company in 14 states. Network operators have cut equipment spending in response to the weak economy and an inventory glut, and Huber noted a Qwest purchase agreement with Corvis had been canceled and is in the process of being renegotiated. That concerned analysts, who had patiently waited for Qwest to deliver revenues. Corvis' entire fourth-quarter revenues came from sales to Broadwing Communications Inc. and Williams Communications Group Inc. (NYSE:WCG - news) QWEST AS QUESTION MARK ``It ain't good,'' said Jeffrey Lipton of J.P. Morgan H&Q. ``It's unclear how much Corvis met technical hurdles, or it could be Qwest is not buying Corvis equipment. It seems the prospects for Corvis at Qwest are totally up in the air right now.'' Thomas Weisel Partners analyst Hasan Imam said, ``If Qwest falls through, you could see some some real problem on the top-line.'' ``We're not really expecting any revenues from Qwest anytime soon,'' he said. While analysts will keep a close watch on how Corvis' talks with Qwest progress, investors will also look harder at equipment trials Corvis has overseas, including one with Spanish telecom giant Telefonica , said Merrill Lynch analyst Simon Leopold. Huber said Corvis expects to see revenues from Telefonica in the first half. He also said Corvis should see first-half revenues from another global carrier, which he did not name. Huber told analysts that Corvis made a strategic move with its recently announced acquisition of Dorsal Networks, which supplies undersea optical system. Analysts, however, have been more cautious about the deal. J.P. Morgan cut its rating for Corvis shares to ``market perform'' from ``long term buy'' after Corvis said it would acquire Dorsal Networks for 40 million shares valued at $90 million.