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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Nick Papa who wrote (2052)	3/31/1999 3:46:00 PM
From: Jacktoad	Read Replies (2) \| Respond to of 3299

(UPDATE) Advanced Fibre Reportedly Close To Naming New CEO, Signing Key Deal Dow Jones Online News, Wednesday, March 31, 1999 at 15:17 NEW YORK -(Dow Jones)- Shares of telecommunications-equipment maker Advanced Fibre Communications Inc. surged Wednesday on talk the firm is close to naming a new chief executive after a nine-month search. In afternoon trading, Advanced Fibre (AFCI) shares were up $2.063, or 27%, at $9.563 on Nasdaq volume of 6.5 million, compared with daily average volume of 2.4 million. Talk of a new CEO "is probably the near-term catalyst," said analyst David Karson of Black & Co. in Portland, Oregon. The company's former chief executive, Carl Grivner, resigned last June. Chairman Don Green is serving as CEO until a new top executive is named. Karson and other analysts also cited widespread expectations that the Petaluma, Calif.-based firm will soon announce a much-anticipated contract with one of the Baby Bells. The company hasn't identified the prospective customer, but there has been speculation that it is SBC Communications Inc. (SBC), Karson said. The contract would be an important financial and strategic milestone, analysts said. Advanced Fibre's stock, which reached a 52-week high of $44.75 April 20, has been trading in the single digits as it struggled with disappointing earnings, the chief executive vacancy and allegations that former employees engaged in insider trading. The fact that the company has reached the end of the first quarter without announcing an earnings letdown has helped some investors gain confidence that the company's first quarter will at least match estimates, said one analyst. The mean estimate of analysts surveyed by First Call was for earnings of four cents a diluted share in the first quarter. Karson said most analysts expect revenue of $60 million to $67 million. In the year-ago period, the company earned $11.9 million, or 15 cents a diluted share, on revenue of $85.8 million. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. Companies or Securities discussed in this article: Symbol Name NASDAQ:AFCI NYSE:SBC SBC Communications Inc