Epoch Partners Issues Research Note on Corvis Corporation

Corvis' True Colors Shine Through: They Ain't Exactly Pretty



Apr 27, 2001, 01:00 ET from Epoch Partners

    SAN FRANCISCO, April 27 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on Corvis Corporation (Nasdaq:   CORV). 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
 Corvis Corporation. Highlights from the report include the following:
 
     -- Reporting EPS of ($0.07) on revenue of $84.1 million, Corvis beat our
 revenue estimate and met our EPS estimate. However, margins declined, DSOs
 soared, inventory increased (again), and cash burned (quickly).
     -- Customer wins have been something the company has hinted at for several
 months, and we're still waiting.
     -- We're revising our estimates, reflecting Corvis' cautious tone about
 customer demand and pricing pressure for its equipment. If Corvis products
 truly offer customers operating efficiencies, we question why they are subject
 to the same pricing pressure as legacy gear from Nortel and Lucent.
     -- We maintain our recommendation prior to today's call. Our full company
 coverage is available free at http://www.epoch.com
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93516863
 
 

SOURCE Epoch Partners
    SAN FRANCISCO, April 27 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on Corvis Corporation (Nasdaq:   CORV). 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
 Corvis Corporation. Highlights from the report include the following:
 
     -- Reporting EPS of ($0.07) on revenue of $84.1 million, Corvis beat our
 revenue estimate and met our EPS estimate. However, margins declined, DSOs
 soared, inventory increased (again), and cash burned (quickly).
     -- Customer wins have been something the company has hinted at for several
 months, and we're still waiting.
     -- We're revising our estimates, reflecting Corvis' cautious tone about
 customer demand and pricing pressure for its equipment. If Corvis products
 truly offer customers operating efficiencies, we question why they are subject
 to the same pricing pressure as legacy gear from Nortel and Lucent.
     -- We maintain our recommendation prior to today's call. Our full company
 coverage is available free at http://www.epoch.com
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93516863
 
 SOURCE  Epoch Partners