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A DSL Commun.. Equipment Turnstone Systems < TSTN >
An SI Board Since November 2000
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Turnstone Systems, Inc: NASDAQ TSTN is a provider of products that enable local exchange carriers to rapidly deploy and efficiently maintain DSL services. The Copper CrossConnect CX100, its first product, is currently being installed in telephone company central offices by competitive local exchange carriers to speed their deployment of DSL services. The CX100 product family enables the rapid and efficient deployment of high-speed digital services on existing copper telephone lines. Its Copper CrossConnect CX100 product family improves the efficiency of installing and managing DSL services while delivering the high levels of reliability and scalability needed in a large, complex network. The CX100 product family is the first solution designed and built specifically to enable local exchange carriers deploying DSL to automate and remotely control the installation, qualification and maintenance of copper telephone lines in a local loop.

The CX100 is typically deployed between one or more DSL access multiplexers and the copper subscriber lines. Additional modules can be added to the CX100 over time as subscriber count increases and as more modules are added to DSL access multiplexers. The CX100 enables local exchange carriers to remotely qualify, manage and control the copper lines. CrossWorks can operate independently or be integrated with a local exchange carrier's operational support system, enhancing efficiency and scalability. The CX100 is typically deployed in a telephone company's central office between one or more DSL access multiplexers and the copper subscriber lines. CX100 modules may be added over time as subscriber count increases and as more DSL access multiplexer modules are added. With the CX100, its customers can remotely qualify and monitor copper lines as well as verify connections to subscriber sites. The Company also offers a suite of software modules, called CrossWorks, which enables its customers to more efficiently control the CX100, enhancing remote or automated management of the local loop. The Company expects that these core technologies will serve as the basis for future generations of products.

CX100

The CX100 is a modular product designed for central office environments and is compliant with network equipment building standards. The base system, which depends on customer configuration, typically consists of one CX100 chassis, one P100 module that provides the management and control functions of the CX100, and one or more L140 modules that provide access to copper telephone lines. The base system is installed and fully cabled in a central office, with additional modules added over time as subscriber count increases and as more DSL access multiplexer modules are added. All modules may be inserted or removed while the system is operational and are automatically recognized and inventoried by the system upon insertion. All modules, indicators and switches are accessible from the front of the system, consistent with current industry practices.

The CX100 supports dual 48-volt power feeds. In the event of loss of power, the CX100 maintains all connections with no loss of subscriber service. The CX100 chassis is available in 19- and 23-inch configurations. The 19-inch version supports 425 lines, and the 23-inch version supports 550 lines. The following modules are currently available: P100, L140 and M101. The P100 module provides management and control functions for the system and has line qualification functionality. The P100 supports Ethernet, serial port or dial-up modem access for management, as well as access for interfacing to external test gear. The L140 module provides access to the P100 and connections for up to 25 copper lines. L140 module may be added over time as subscriber count increases and as more DSL access multiplexer modules are added. The M101 module provides a six-port Ethernet hub and four contacts for monitoring physical alarms in central offices. This optional module provides a convenient management connectivity solution between multiple network products within the central office. Its CX100 enables carriers to remotely perform line qualification, testing and maintenance on any line connected through the system. Accurate line qualification and testing enable local exchange carriers to rapidly and efficiently deploy DSL services.

Crossworks

CrossWorks is a suite of software products that enable service providers to automate physical management of a large volume of copper lines when using CX100 systems. CrossWorks employs a client-server architecture that offers flexible integration with existing operations and support systems. The CrossWorks server, which performs most of the automation work, can be accessed via standard interfaces, such as common object request broker architecture, commonly known as CORBA, JAVA, remote method indication, commonly known as RMI, simple network management protocol, commonly known as SNMP, or distributed component object model, commonly known as DCOM, allowing a service provider to use its own user interface. Alternatively, a service provider can use CrossWorks as a standalone client-server application. With either of these approaches, CrossWorks is designed to interface with the service provider's existing database through a standard application-programming interface. These options are designed to provide the service provider with automated system capabilities while leveraging its existing operational support systems infrastructure.

The CrossWorks suite consists of the following modules: CrossTest for line qualification and line history tracking, CrossScope for frequency analysis of local analog telephone lines, CrossConfig for comprehensive network configuration and administration of multiple CX100s, and CrossView for basic management of individual CX100s. The Company's CrossWorks software operates in conjunction with the CX100 to automate the collection, analysis and archiving of information regarding subscribers, line assignments, test histories and other information. Raw test data can be automatically gathered at programmed intervals and analyzed, generating pass/fail notifications based on user-defined thresholds for particular services. All of the information is automatically stored, and is available for future troubleshooting or trend analysis. CrossWorks also includes automated network administration capabilities such as software upgrades, backups and alarm tracking.

CrossWorks may be integrated with service providers' existing operational support systems using open, standard interfaces or operated as a stand-alone application.
Financial Summary Turnstone Systems, Inc. is a provider of products that enable local exchange carriers to rapidly deploy and efficiently maintain digital subscriber line (DSL) service, enabling the automation of installation, qualification and maintenance of copper lines. For the nine months ended 9/30/00, revenues totaled $120.4 million, up from $14.7 million. Net income totaled $26.5 million vs. a loss of $1.3 million. Results reflect increased sales of the Copper CrossConnect CX100 product.

Location
2220 Central Expressway
Santa Clara, CA 95050
Phone: (408) 907-1400
Fax: (650) 428-0200

Email: webmaster@turnstone.com

Employees (last reported count): 73

Company Web Site: turnstone.com

Ownership:
Insider ownership74%
Institutional ownership: 22% (84% of Float)

Officers:
Richard Tinsley, 35 Pres, CEO
Terrence Schmid CFO
Shames Panahi, 41 VP, Operations
Michael Crumlin, 38 VP, Sales and Customer Service
Eric Andrews, 34 VP, Marketing

Price and Volume
52-Week Low on 13-Nov-2000 $10.00
Recent Price $10.938
52-Week High on 12-July-2000 $107.00
Share-Related Items
Market Capitalization $713.4M
Shares Outstanding 65.2M
Float 17.0M
Per-Share Data
Book Value (mrq) $4.64
Earnings (ttm) $0.53
Earnings (mrq) $0.19
Sales (ttm) $2.60
Cash (mrq) $4.39
Valuation Ratios
Price/Book (mrq) 2.36
Price/Earnings (ttm) 20.68
Price/Sales (ttm) 4.21

Income Statements
Sales (ttm) $132.9M
EBITDA (ttm) $49.0M
Income available to common (ttm) $27.5M
Profitability
Profit Margin (ttm) 20.7%
Operating Margin (ttm) 31.5%

Management Effectiveness
Return on Assets (ttm) 17.50%
Return on Equity (ttm) 20.15%
Financial Strength
Current Ratio (mrq) 8.93
Debt/Equity (mrq) 0.00
Total Cash (mrq) $285.6M

November 01, 1999
Axessa Deploys Turnstone's Copper CrossConnect® CX100
as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_110199.shtm>
<http://www.bluestar.net> <http://www.bluestar.net>

August 27, 1999
BlueStar Communications Selects Turnstone Systems' Copper CrossConnect®
to Cut Time to Market, Expand Profit Margin for DSL Services
Click for Press Release <../news/press_release_082799.shtm>
<http://www.connectsouth.com> <http://www.connectsouth.com>

April 10, 2000
ConnectSouth Selects Turnstone's Copper CrossConnect® to Cut Time to Market and Labor Costs for DSL Services
Click for Press Release <../news/press_release_041000.shtm>
<http://www.covad.com> <http://www.covad.com>

September 28, 1999
Turnstone's Copper CrossConnect® Selected by Covad as
Local Loop Management Platform for Nationwide DSL Services Offering
Click for Press Release <../news/press_release_092899_2.shtm>
<http://www.digitalbroadband.com> <http://www.digitalbroadband.com>

March 6, 2000
Digital Broadband Communications Selects Turnstone's Copper CrossConnect® as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_030600.shtm>
Back to Top
<http://www.dsl.net> <http://www.dsl.net>

July 13, 1999
DSL.net Selects Turnstone Systems' Copper CrossConnect®
to Facilitate the Deployment of DSL Business Services
Click for Press Release <../news/press_release_071399.shtm>
<http://www.first-telecom.com/> <http://www.first-telecom.com/>

April 3, 2000
First Telecom to Deploy the Copper CrossConnect® CX100 in Central Offices Throughout Germany for DSL Service Offering as Part of Total System Solution from Nokia Networks
Click for Press Release <../news/press_release_040300.shtm>
<http://www.harvardnet.com/> <http://www.harvardnet.com/>

June 6, 2000
HarvardNet Selects Turnstone's Copper CrossConnect® CX100 to Automate DSL Delivery Processes
Click for Press Release <../news/press_release_060600.shtm>
<http://www.interloop.net> <http://www.interloop.net>

May 11, 2000
Interloop Selects Turnstone's Copper CrossConnect® as Local Loop Management Platform for DSL-Enabled Voice and Data Services
Click for Press Release </news/press_release_051100.shtm>
<http://www.jatocom.com/> <http://www.jatocom.com/>

June 8, 1999
Jato Communications Corp. Selects Turnstone Equipment
to Accelerate DSL Service Deployment
Click for Press Release <../news/press_release_060899.shtm>
Back to Top
<http://www.maverix.net/> <http://www.maverix.net/>

March 7, 2000
Maverix.net Launches Business-Class DSL Company With $42.5 Million In Financing
Click for Press Release <http://www.maverix.net/AboutUs/release030700.html>
<http://www.mcleodusa.com> <http://www.mcleodusa.com>

September 19, 2000
McLeodUSA Selects the Copper CrossConnect® CX100 Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_091900_mcleodusa.shtm>
<http://www.mgci.com/> <http://www.mgci.com/>

September 27, 1999
MGC Communications Selects Turnstone's Copper
CrossConnect® to Enable More Efficient, Affordable DSL
Service Delivery
Click for Press Release <../news/press_release_092799.shtm>
<http://www.nas-corp.com/> <http://www.nas-corp.com/>

April 12, 1999
NAS selects Turnstone's Copper CrossConnect®
for their CuNet DSL Service Network
Click for Press Release <../news/press_release_041299.shtm>
<http://www.nwp.com/> <http://www.nwp.com/>

November 22, 1999
Network Plus Deploys Turnstone's Copper CrossConnect® CX100
As Local Loop Management Platform For DSL Services
Click for Press Release <../news/press_release_112299.shtm>
<http://www.networktelephone.net > <http://www.networktelephone.net >

June 5, 2000
Network Telephone Selects Turnstone's Copper CrossConnect® CX100 as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_060500_networktel.shtm>
Back to Top
<http://www.northpointcom.com/> <http://www.northpointcom.com/>

May 31, 2000
NorthPoint Selects Turnstone's Copper CrossConnect® Solution to Automate Deployment and Maintenance of DSL Services
Click for Press Release <../news/press_release_053100.shtm>
<http://www.northpointcanada.net> <http://www.northpointcanada.net>

September 18, 2000
NorthPoint Canada Communications Augments DSL Delivery and Support System with Turnstone's Copper CrossConnect® CX100 and CrossWorks™ Tools
Click for Press Release <../news/press_release_091800.shtm>
<http://www.onvoy.com/> <http://www.onvoy.com/>

June 21, 2000
Onvoy Selects Turnstone's Copper CrossConnect® CX100 as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_062100.shtm>
<http://www.picus.com> <http://www.picus.com>

February 17, 2000
Picus Selects Turnstone's Copper CrossConnect® as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_021700.shtm>
<http://www.primary.net> <http://www.primary.net>

February 7, 2000
Primary Network Communications Selects Turnstone's Copper CrossConnect® as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_020700.shtm>
Back to Top
<http://www.prospeed.net> <http://www.prospeed.net>

July 11, 2000
ProSpeed.Net Selects Turnstone's Copper CrossConnect CX100® as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_071100.shtm>
<http://www.qwest.com> <http://www.qwest.com>

May 10, 2000
US WEST® Selects Turnstone's Copper CrossConnect® to Expedite DSL Deployment for Out-of-Region Customers
Click for Press Release <../news/press_release_051000.shtm>
<http://www.rhythms.com> <http://www.rhythms.com>

May 22, 2000
Germany's riodata Selects Turnstone's Copper CrossConnect® as Local Loop Management Platform for DSL Services
Click for Press Release </news/press_release_052200_eng.shtm>
Click for Press Release in German </news/press_release_052200_ger.shtm>
Back to Top
<http://www.rhythms.com> <http://www.rhythms.com>

April 26, 1999
Rhythms Selects Turnstone's Copper CrossConnect
for Nationwide DSL Service Deployment
Click for Press Release <../news/press_release_042699.shtm>
<http://www.telepacific.com> <http://www.telepacific.com>

May 16, 2000
TelePacific Communications Selects Turnstone's Copper CrossConnect® as Local Loop Management Platform for DSL Services
Click for Press Release <../news/press_release_051600.shtm>
<http://www.transbeam.com> <http://www.transbeam.com>

March 21, 2000
Transbeam™ Selects Turnstone's Copper CrossConnect® as Loop Management Platform for Expansion of DSL Services along East Coast
Click for Press Release <../news/press_release_032100.shtm>
<http://www.vectris.com> <http://www.vectris.com>

May 3, 2000
Vectris Selects Turnstone's Copper CrossConnect® to Support More Efficient, Affordable DSL Delivery
Click for Press Release <../news/press_release_050300.shtm>
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