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B R E A K F A S T W I T H T H E F O O L Thursday, October 12, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=152395 _________________________________________________________________ Sponsored By: CompuBank Open an account with CompuBank and get $20 deposited into your account AND a FREE 6-month subscription to the Motley Fool Internet Report ($60 value). Apply NOW! http://www.lnksrv.com/m.asp?i=152396 "The best audience is intelligent, well-educated, and a little drunk." -- Alben W. Barkley REDBACK RAMPS UP The network equipment maker quadruples revenues and reports its first pro forma profit. By Chris Rugaber Network equipment maker Redback Networks (Nasdaq: RBAK) reported third-quarter results after yesterday's market close, almost quadrupling revenues to $80.6 million from last year's $20.6 million. On a pro forma basis, Redback eked out $3.2 million in profit, or $0.02 per share, ahead of analysts' consensus estimates of a $0.02 per share loss. Including costs related to its acquisitions of Siara Systems and Abatis Systems, as well as stock compensation expenses, the company reported a loss of $308.1 million, or $2.50 per share. Redback makes subscriber management systems that enable telecom service providers to handle heavy traffic on high-speed networks, including cable, DSL, and wireless connections. The company also recently began ramping up sales of its optical networking products, which are being used in regional fiber optic networks. The company, which was a Daily Double this spring, added 70 new customers during the quarter, bringing its total to more than 300. This is particularly important for a company like Redback, since many small networking equipment companies rely inordinately on only a few customers, and can get slammed if just one or two buyers delay or cancel a purchase. This may still be an issue for Redback, however. While the company added Qwest Communications' (NYSE: Q) U S West unit as a new customer, the former Baby Bell accounted for 24% of the company's revenues in the quarter. http://www.fool.com/m.asp?i=152397 Redback's CFO Craig Genter told analysts in a conference call that revenues should hit $100 million next quarter, and continue to grow 20% each quarter next year. As a result, the company expects sales to hit $645 million in 2001. While such growth is impressive, at a market cap of $19 billion, the market clearly expects great things from the company. _________________________________________________________________ NEWS TO GO Among the many companies reporting earnings last night was Advanced Micro Devices (NYSE: AMD), which beat analysts' consensus estimates by two pennies. The microprocessor and flash memory maker reported net income (excluding onetime charges) of $219 million, or $0.64 per share, and sales of $1.2 billion. For more info, check out yesterday's news report. http://www.fool.com/m.asp?i=152398 Motorcycle maker Harley Davidson (NYSE: HDI) reported a solid third quarter yesterday. Net income reached $83 million, or $0.27 per share, a 27% increase over last year's $65.4 million, or $0.21 per share. Sales were up 15% to $714.1 million. The company, which makes over 25% of the heavyweight bikes sold worldwide, shipped 48,077 motorcycles in the quarter, 13% more than the year-earlier period, and expects to ship 203,000 this year. However, sales did fall 38% in the company's Buell division, which makes a lightweight bike called the Blast, and which just maybe doesn't appeal to Harley's regular customers. For more information on Harley Davidson, check out the Drip Portfolio's recent analysis of the company. http://www.fool.com/m.asp?i=152399 Fiber optic cable and components maker Corning (NYSE: GLW) announced yesterday that third-quarter earnings would beat analysts' estimates, thanks to strong demand. The company expects to report earnings per share (EPS) of $0.34-$0.35 for the quarter, 75% above last year's figure and ahead of consensus estimates of $0.30 per share. For more information on fiber optics components, be sure to check out our new Internet Report on the subject. http://www.lnksrv.com/m.asp?i=152400 Warehouse club operator Costco Wholesale (Nasdaq: COST) reported a 9% increase in fourth-quarter profit yesterday. Earnings reached $200.2 million, or $0.43 per share, 10% higher than the $0.39 per share reached a year ago. Sales rose 20% to $10.6 billion for the quarter. Same-store sales -- sales at warehouses open at least a year -- were up 9%. http://www.fool.com/m.asp?i=152401 Fast food company Tricon Global Restaurants (NYSE: YUM) announced mixed third-quarter results last night, with net income up 2.7% to $115 million, or $0.77 per share, ahead of analysts' consensus estimates of $0.70. However, revenues declined 8.5% to $1.66 billion from $1.81 billion in the year-earlier period. The operator of Pizza Hut, Taco Bell, and KFC restaurants also reported that same-store sales rose 1% at Pizza Hut, fell 2% at Taco Bell (probably thanks to all that great publicity over recalled shells), and were "little changed" at KFC. http://www.fool.com/m.asp?i=152402 Finally, home improvement chain Home Depot (NYSE: HD) warned today that third-quarter earnings will be below expectations, thanks to lower prices for lumber and other building materials. Profits should reach $0.28 per share, less than the $0.31 per share expected by analysts. Same-store sales should increase 4%, below the 5% to 7% the company previously forecasted. Check out yesterday's Foolish market wrap-up with just one click. http://www.fool.com/m.asp?i=152403 _________________________________________________________________ EDITOR'S PICK Two Fools debate whether Siebel Systems will continue to dominate the Customer Relationship Management (CRM) software industry. http://www.fool.com/m.asp?i=152404 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=152405 -Fool Community http://www.fool.com/m.asp?i=152406 -Post of the Day http://www.fool.com/m.asp?i=152407 -Latest Fribble http://www.fool.com/m.asp?i=152408 -Latest Market Numbers http://www.fool.com/m.asp?i=152409 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=152410 My Discussion Boards: http://www.fool.com/m.asp?i=152411 My Fool: http://www.fool.com/m.asp?i=152412 Fool.com Home: http://www.fool.com/m.asp?i=152413 My E-Mail Settings: http://www.fool.com/m.asp?i=152414 Sponsored By: CompuBank Open an account with CompuBank and get $20 deposited into your account AND a FREE 6-month subscription to the Motley Fool Internet Report ($60 value). Apply NOW! http://www.lnksrv.com/m.asp?i=152415 WIRELESS 201: FREE PREVIEW Get a sneak peek at this report on Soapbox.com http://www.lnksrv.com/m.asp?i=152416 BECOME A FOOL! Get a FREE Investing Guide and more... http://www.fool.com/m.asp?i=152417 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=152418 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-10249-B10123358Address.msg-09:24:43(10-12-2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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