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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (861)	12/16/1998 10:21:00 AM
From: Steven Bowen	Read Replies (1) \| Respond to of 1461

Robbie Stephens notes; Global economic uncertainty during the past quarter has slowed global infrastructure spending as evidenced by Ericsson's (ERICY $23-1/8) recent preannouncement. We believe that this trend is also affecting P-Com's business and are taking this opportunity to lighten our Q4 revenue estimate to $41 million from $46 million and to cut our Q4 EPS estimate to $(0.24) from $(0.16). We believe that continued strong subscriber growth along with deferred infrastructure investment could produce a better market for infrastructure equipment in 1999. However, P-Com's reduced work force may limit their ability to participate as fully as we previously expected. We are lowering our 1999 estimate to $0.02 from $0.05 previously on revenues of $221.6 million. In our view, key to the recovery of P-Com stock will be the successful launch of the company's LMDS products in 1999. These products could allow the company to enter a nascent but potentially large market with more generous margins than the company's current businesses. We continue to rate the stock Long-Term Attractive.