Epoch Partners Issues Research Note on Avici Systems

Avici Reports Gold-Plated Quarterly Results





Apr 19, 2001, 01:00 ET from Epoch Partners, Inc.

    SAN FRANCISCO, April 19 /PRNewswire/ -- Epoch Partners, Inc. today
 announced it has issued a Research Note on Avici Systems (Nasdaq:   AVCI). The
 Note is available for free to investors through the Epoch Web site
 (www.epoch.com).
     The Research Note, issued by Seth Spalding, Senior Research Analyst for
 Communications Equipment Systems, discusses the current investment thesis of
 Avici Systems.  Highlights from the report include the following:
 
     -- Avici's quarterly performance was solid on the surface with revenue of
        $15.7 million and EPS of ($0.24) that exceeded our estimates. Gross
        margins displayed considerable improvement, rising to 42.9% from 35.1%
        last quarter.
     -- Avici's trade receivables soared, causing DSO's to also rise. Combined
        with increasing deferred revenue, we're concerned about the company's
        collections ability. Avici also confirmed a lengthening sales cycle for
        its products and offered cloudy visibility into future quarters.
     -- Customer concentration was high but not alarming. We estimate that AT&T
        represented more than 50% of revenue in the quarter. Top three
        customers (AT&T, Qwest, Enron) made up 85% of revenue. Customer trials
        are on track with interesting opportunities abroad.
     -- Avici shares have been hammered in the recent technology stock downturn
        and are staged to rebound somewhat as valuations stabilize. However,
        this quarter's developments are reason enough to reconsider our bullish
        tone for the company's near-term prospects.
 
     Communications Equipment Research Coverage
     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, 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
 http://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.
 
 

SOURCE Epoch Partners, Inc.
    SAN FRANCISCO, April 19 /PRNewswire/ -- Epoch Partners, Inc. today
 announced it has issued a Research Note on Avici Systems (Nasdaq:   AVCI). The
 Note is available for free to investors through the Epoch Web site
 (www.epoch.com).
     The Research Note, issued by Seth Spalding, Senior Research Analyst for
 Communications Equipment Systems, discusses the current investment thesis of
 Avici Systems.  Highlights from the report include the following:
 
     -- Avici's quarterly performance was solid on the surface with revenue of
        $15.7 million and EPS of ($0.24) that exceeded our estimates. Gross
        margins displayed considerable improvement, rising to 42.9% from 35.1%
        last quarter.
     -- Avici's trade receivables soared, causing DSO's to also rise. Combined
        with increasing deferred revenue, we're concerned about the company's
        collections ability. Avici also confirmed a lengthening sales cycle for
        its products and offered cloudy visibility into future quarters.
     -- Customer concentration was high but not alarming. We estimate that AT&T
        represented more than 50% of revenue in the quarter. Top three
        customers (AT&T, Qwest, Enron) made up 85% of revenue. Customer trials
        are on track with interesting opportunities abroad.
     -- Avici shares have been hammered in the recent technology stock downturn
        and are staged to rebound somewhat as valuations stabilize. However,
        this quarter's developments are reason enough to reconsider our bullish
        tone for the company's near-term prospects.
 
     Communications Equipment Research Coverage
     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, 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
 http://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.
 
 SOURCE  Epoch Partners, Inc.