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            B R E A K F A S T   W I T H   T H E   F O O L
                     Wednesday, October 18, 2000

benjamin.rogers@enron.com
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-- Thomas Edison


COPPER MOUNTAIN GETS HALVED
Copper Mountain, the provider of digital subscriber line
solutions, reported its Q3 earnings yesterday, along with some
bad news about its Q4.

By LouAnn Lofton

Digital subscriber line (DSL) solutions provider Copper Mountain
Networks (Nasdaq: CMTN) announced its third-quarter results
yesterday after the bell. The company also provided some
guidance for its fourth quarter and for its next fiscal year
that sent its stock tumbling more than 50% to around $12 in
after-hours trading. Copper Mountain closed in regular trading
yesterday at $26.88, far below the 52-week high it reached back
in July of $125.72.

For its third quarter, Copper Mountain had revenues of $93.5
million, 192% ahead of the $32 million it earned in the same
quarter a year ago. Pro forma net income, which excludes two
charges, was $15.8 million. The company's net income last year
in the third quarter was $5.3 million.

Copper Mountain's pro forma earnings per diluted share came in a
penny ahead of the consensus estimate at $0.27. Third-quarter
earnings per share a year ago were $0.09.

Now, for the stuff that sent the company's stock plummeting in
after-hours trading. Rick Gilbert, Copper Mountain's president
and chief executive officer, said, "In light of recent
reductions in capital expenditure forecasts from many of our
CLEC [Competitive Local Exchange Carriers] customers, we expect
revenue and earnings to decline in the fourth quarter of 2000 on
a sequential basis."

Just how big will the "decline" be? Copper Mountain now expects
sales to be $60 million for the fourth quarter. It sees pro
forma earnings per share coming in between $0.04 and $0.06.
Analysts had been looking for $0.28 a share.

Gilbert went on to talk about his company's expected fiscal 2001
results. While pointing out that giving guidance that far out is
very difficult, he said he expects sales for fiscal 2001 to be
between $300 million and $330 million. Earnings per share should
be between $0.16 and $0.25. Street analysts were expecting $1.37
a share for Copper Mountain's fiscal 2001.

AFTER-HOURS COVERAGE

INTEL VS. ADVANCED MICRO
By Brian Lund
Intel's revenue warning in September turned out to be cosmetic.
Revenue growth was still strong, margins improved meaningfully,
and earnings came in at original expectations. Intel continues
to dominate its main competitor, AMD.
FULL STORY
http://www.fool.com/m.asp?i=159576
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NEWS TO GO

RF Micro Devices (Nasdaq: RFMD), the wireless communications
amplifying chip maker, announced its second-quarter earnings
yesterday, and also talked about its expected third-quarter
results. For its Q2, the company met estimates with $0.10 a
share. Net income was $17.7 million on revenues of $102.2
million. Last year in the second quarter, RF Micro Devices
earned $12.5 million on revenues of $68.9 million, or $0.07. The
company then said it was lowering expectations for the third
quarter because of low demand for its products, as well as
product delays. It expects earnings per share to be between
$0.04 and $0.05 a share. Analysts were looking for $0.11 a
share.

International Business Machines (NYSE: IBM) reported its
third-quarter earnings after the market's close yesterday. Sales
grew by 3% to $21.8 billion. This wasn't enough to satisfy
analysts, who were looking for sales to come in at $22.4
billion. Net income for the quarter rose to $2 billion, from
$1.7 billion in the same quarter last year. Earnings per share
were $1.08, versus $0.90 a share last year. This EPS number met
the consensus estimate as reported by First Call/Thompson
Financial. IBM blamed at least some of the weak revenue growth
on an anemic euro. The company claimed its sales would have
risen 6% without those negative currency effects.

Chip maker Xilinx (Nasdaq: XLNX) announced its second-quarter
earnings yesterday after the bell. The company's revenues grew
83% to $437.4 million, from $238.8 million in its second quarter
last year. Net income was $114.1 million, compared to $59.2
million a year ago. Earnings per share beat the consensus
estimate by two cents, coming in at $0.32, versus $0.17 last
year.

Handspring (Nasdaq: HAND) reported its first-quarter results
yesterday afternoon. The company's loss was narrower than
expected. Excluding some deferred stock compensation costs,
Handspring lost $8 million, or $0.08 a share. Analysts polled by
First Call/Thompson Financial expected it to lose $0.12 a share.
Including those costs, the company lost $0.17 a share, or $16.4
million. Handspring's revenues for the quarter were $70.5
million.

Covad Communications Group (Nasdaq: COVD) announced its
third-quarter earnings results yesterday. Revenues were $66.7
million, compared to revenues in the year-ago period of $19.1
million. Covad's net loss was $189.9 million, versus a loss of
$54.1 million the year before. The company's net loss of $1.22
per share was greater than the consensus estimate of $1.18 per
share. In Covad's third quarter last year, it lost $0.47 a
share. Covad's chief executive officer, Robert Knowling, pointed
to his company's clients as the reason the shortfall. "Due to
the weakness in the capital markets, nine of our channel
partners have experienced financing difficulties and have
slipped in their ability to stay current with their accounts
receivable. To conservatively account for this, despite billing
$78.1 million in revenue for the third quarter, only $66.7
million was recorded."

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