Epoch Partners Issues Research Note on Avanex Corporation

Avanex Results in Line With Reduced Expectations



Apr 25, 2001, 01:00 ET from Epoch Partners

    SAN FRANCISCO, Apr 25 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on Avanex Corporation (Nasdaq:   AVNX). The Note is
 available for free to investors through the Epoch Web site (www.epoch.com).
     The Research Note, issued by Mark Langley, Senior Research Analyst for
 Communications Equipment Subsystems, discusses the current investment thesis
 of Avanex Corporation. Highlights from the report include the following:
 
     -- Avanex reported fiscal third-quarter 2001 results in line with reduced
 expectations. Revenues were $30.3 million and earnings per share (EPS) were a
 loss of $0.03.
     -- Sales of PowerMux and PowerExchanger increased 30% sequentially,
 somewhat offsetting the expected shortfall in sales of PowerFilter to
 WorldCom.
     -- Avanex lost WorldCom but gained Alcatel in the 10% customer category.
     -- The company is also taking a $22.6 million charge for unsold inventory
 and non-cancelable purchase commitments.
     -- To cut costs, Avanex is reducing its work force, subleasing unoccupied
 buildings, and scaling back incidental spending.
     -- Based on a continued conservative outlook regarding customer orders, we
 are reducing our calendar 2001 revenue estimate to $110.3 million from
 $137.3 million and our calendar 2001 EPS estimate to a loss of $0.09 from a
 loss of $0.04.
      -- We think Avanex shares are fully valued -- at the upper end of their
 peer group -- and that once the uncertainty regarding capital spending and the
 economy at large is resolved, demand for Avanex's innovative products will
 resume its growth trajectory.
 
     Investors can visit Epoch's Web site to read research coverage on the
 following public companies:  Avanex Corporation, Avici Systems,
 Bookham Technology plc, Ceragon Networks, CIENA Corporation, Cisco Systems,
 Corning Incorporated, Corvis Corporation, Endwave Corporation,
 Finisar Corporation, Floware Wireless Systems, Foundry Networks,
 JDS Uniphase Corporation, Lucent Technologies, Netro Corporation,
 New Focus, Inc., Netro Corporation, Sycamore Networks, and UTStarcom, Inc.
     In addition, investors can be added to the Communications Equipment email
 alert system, which alerts investors to new research in the Communications
 Equipment sector. To be added to this alert system visit
 http://pluto.sparklist.com/scripts/lyris.pl?join=epochcommeq.
     Full research coverage on other companies under coverage by Epoch is
 available for free to investors through the Epoch Web site (www.epoch.com).
     Epoch Partners is a technology-enabled investment bank focused on
 high-growth companies and electronically connected institutional and
 individual investors.
     The information contained herein is based on sources believed to be
 reliable but is neither all inclusive nor guaranteed by Epoch Partners.
 Opinions, if any, reflect our judgment at this time and are subject to change.
 Epoch Partners does not undertake to advise of changes in its opinion or the
 information. Epoch Partners may perform or seek to perform investment banking
 services for the issuers of securities which are the subject of our Research.
 Most of the companies Epoch Partners follows are emerging growth companies
 whose securities typically involve a higher degree of risk and more volatility
 than the securities of more established companies. The securities discussed in
 the Epoch Partners Research may be unsuitable for investors depending on their
 specific investment objectives and financial situation and needs. No report
 included in the Epoch Partners Research is a recommendation that any
 particular investor should purchase or sell any particular security in any
 amount or at all and is not a solicitation of any offer to purchase or sell
 from or to any particular investor. For additional information that may be
 available on the securities mentioned, please contact Epoch Partners. This
 document has been published in the United States for Residents of the United
 States. Member NASD/SIPC.
     Epoch Partners is a member of the National Association of Securities
 Dealers, CRD number 103899.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51826733
 
 

SOURCE Epoch Partners
    SAN FRANCISCO, Apr 25 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on Avanex Corporation (Nasdaq:   AVNX). The Note is
 available for free to investors through the Epoch Web site (www.epoch.com).
     The Research Note, issued by Mark Langley, Senior Research Analyst for
 Communications Equipment Subsystems, discusses the current investment thesis
 of Avanex Corporation. Highlights from the report include the following:
 
     -- Avanex reported fiscal third-quarter 2001 results in line with reduced
 expectations. Revenues were $30.3 million and earnings per share (EPS) were a
 loss of $0.03.
     -- Sales of PowerMux and PowerExchanger increased 30% sequentially,
 somewhat offsetting the expected shortfall in sales of PowerFilter to
 WorldCom.
     -- Avanex lost WorldCom but gained Alcatel in the 10% customer category.
     -- The company is also taking a $22.6 million charge for unsold inventory
 and non-cancelable purchase commitments.
     -- To cut costs, Avanex is reducing its work force, subleasing unoccupied
 buildings, and scaling back incidental spending.
     -- Based on a continued conservative outlook regarding customer orders, we
 are reducing our calendar 2001 revenue estimate to $110.3 million from
 $137.3 million and our calendar 2001 EPS estimate to a loss of $0.09 from a
 loss of $0.04.
      -- We think Avanex shares are fully valued -- at the upper end of their
 peer group -- and that once the uncertainty regarding capital spending and the
 economy at large is resolved, demand for Avanex's innovative products will
 resume its growth trajectory.
 
     Investors can visit Epoch's Web site to read research coverage on the
 following public companies:  Avanex Corporation, Avici Systems,
 Bookham Technology plc, Ceragon Networks, CIENA Corporation, Cisco Systems,
 Corning Incorporated, Corvis Corporation, Endwave Corporation,
 Finisar Corporation, Floware Wireless Systems, Foundry Networks,
 JDS Uniphase Corporation, Lucent Technologies, Netro Corporation,
 New Focus, Inc., Netro Corporation, Sycamore Networks, and UTStarcom, Inc.
     In addition, investors can be added to the Communications Equipment email
 alert system, which alerts investors to new research in the Communications
 Equipment sector. To be added to this alert system visit
 http://pluto.sparklist.com/scripts/lyris.pl?join=epochcommeq.
     Full research coverage on other companies under coverage by Epoch is
 available for free to investors through the Epoch Web site (www.epoch.com).
     Epoch Partners is a technology-enabled investment bank focused on
 high-growth companies and electronically connected institutional and
 individual investors.
     The information contained herein is based on sources believed to be
 reliable but is neither all inclusive nor guaranteed by Epoch Partners.
 Opinions, if any, reflect our judgment at this time and are subject to change.
 Epoch Partners does not undertake to advise of changes in its opinion or the
 information. Epoch Partners may perform or seek to perform investment banking
 services for the issuers of securities which are the subject of our Research.
 Most of the companies Epoch Partners follows are emerging growth companies
 whose securities typically involve a higher degree of risk and more volatility
 than the securities of more established companies. The securities discussed in
 the Epoch Partners Research may be unsuitable for investors depending on their
 specific investment objectives and financial situation and needs. No report
 included in the Epoch Partners Research is a recommendation that any
 particular investor should purchase or sell any particular security in any
 amount or at all and is not a solicitation of any offer to purchase or sell
 from or to any particular investor. For additional information that may be
 available on the securities mentioned, please contact Epoch Partners. This
 document has been published in the United States for Residents of the United
 States. Member NASD/SIPC.
     Epoch Partners is a member of the National Association of Securities
 Dealers, CRD number 103899.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51826733
 
 SOURCE  Epoch Partners