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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (7547)	8/6/1998 9:26:00 AM
From: SteveG	Read Replies (1) \| Respond to of 12468

Call was very upbeat. If I owned only stock, I'd sleep great. What the stock will do by EOY is the wild card. Fwiw, here's NBMO comments: WinStar reported 2Q98 results with strong 250% revenue growth of $57.3 million and improved EBITDA of a loss of $48.6 million, in-line with our expectations. WinStar's EPS loss of ($2.77), 11-cents better than First Call consensus of ($2.88) and $0.31 better than our estimate of ($3.08). In summary, we believe the strong results, both financial and operational, show that WinStar is on-track and making excellent progress. Importantly: * The New York City market is proven and proliferable having achieved EBITDA break-even and 37% gross margin after 18 months of operation. * 2Q EBITDA improvement confirms that execution is on-plan. We believe that 4Q97 is WinStar's EBITDA trough quarter and that EBITDA improvements in 1Q and now 2Q demonstrate steady management execution and progress towards EBITDA breakeven in 2000. * Average revenue per customer is increasing, reflecting the benefits of WinStar's strategy to first establish customer relationships and later cross-sell and up-sell additional services

To: TheSlowLane who wrote (7547)	8/6/1998 9:39:00 AM
From: SteveG	Read Replies (1) \| Respond to of 12468

CSFB: WinStar Communications (WCII, $30, BUY) Target (Year-end): $61 Frank J. Governali, CFA 207/780-6210 frank.governali@csfb.com WinStar reported second quarter results that were in line with our estimates (reflecting strong growth), with CLEC revenues beating our number slightly. Equally important the company revealed a variety of fundamental achievements that should put to bed the concerns about the efficacy of the WCII gameplan, and its ability to execute upon it. Revenues reached $57.3 million, versus $16 million a year ago; EBITDA was a loss of $48.6 million, in line with expectations and slightly lower than the first quarter; and as previously reported 50,000 lines were added, about 6% higher than our estimates and 22% higher than first quarter installs; about 60% of lines carry some form of local service, 15% to 20% are long distance, and 20% to 25% data. We're keeping our 1998 and 1999 EBITDA loss estimates of $192 million, and $65 million. Our yearend price target remains $61, and our rating remains Buy. Annual Prev. EPS EPS 12/99E (9.45) 12/98E (11.50) (11.62)