Epoch Partners Issues Research Note on Endwave Corporation

Endwave Meets Expectations, Reduces Guidance, Makes Acquisition, Loses

Customer, Appoints New CFO



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

    SAN FRANCISCO, April 27 /PRNewswire/ -- Epoch Partners today   announced
 it has issued a Research Note on Endwave Corporation (Nasdaq: ENWV). 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 Endwave Corporation. Highlights from the report include the following:
 
     -- Endwave reported first-quarter revenues of $12.5 million and a
        pro-forma loss of $0.25 per share, slightly below our top-line
        estimate of $13 million and ahead of our EPS estimate of a loss of
        $0.27.
     -- The company said weakness in the domestic CLEC (competitive local
        exchange carrier) multipoint market and a halt in outdoor unit (ODU)
        sales to Hughes were to blame for the lower-than-expected top line,
        which was offset by improved pricing, better sales mix, and cost
        controls.
     -- Endwave discussed its first acquisition (announced yesterday), buying
        broadband wireless assets from M/A-COM for $6 million in cash and
        stock, plus the assumption of liabilities.
     -- Due to weakness in domestic telecom and multipoint markets, Endwave
        revised its guidance downward again, though the company still plans to
        achieve positive gross margins in 4Q. The company expects 2Q revenues
        to be approximately half those of 1Q.
     -- The company also announced the departure of CFO Bruce Margetson. He
        will be succeeded by vice president of finance Julie Biagini on
        May 1.
     -- We are revising our 2001 revenue estimate to $44.0 million from
        $64.5 million and our 2001 EPS estimate to a loss of $0.95 per share
        from a loss of $0.91 per share.
     -- We think Endwave shares are stale money until the outlook for wireless
        equipment improves and the company makes substantial progress towards
        profitability.
 
     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, 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.
     Epoch Partners has been an underwriting manager or co-manager of Endwave
 Corporation in the last three years.
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64953378
 
 

SOURCE Epoch Partners, Inc.
    SAN FRANCISCO, April 27 /PRNewswire/ -- Epoch Partners today   announced
 it has issued a Research Note on Endwave Corporation (Nasdaq: ENWV). 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 Endwave Corporation. Highlights from the report include the following:
 
     -- Endwave reported first-quarter revenues of $12.5 million and a
        pro-forma loss of $0.25 per share, slightly below our top-line
        estimate of $13 million and ahead of our EPS estimate of a loss of
        $0.27.
     -- The company said weakness in the domestic CLEC (competitive local
        exchange carrier) multipoint market and a halt in outdoor unit (ODU)
        sales to Hughes were to blame for the lower-than-expected top line,
        which was offset by improved pricing, better sales mix, and cost
        controls.
     -- Endwave discussed its first acquisition (announced yesterday), buying
        broadband wireless assets from M/A-COM for $6 million in cash and
        stock, plus the assumption of liabilities.
     -- Due to weakness in domestic telecom and multipoint markets, Endwave
        revised its guidance downward again, though the company still plans to
        achieve positive gross margins in 4Q. The company expects 2Q revenues
        to be approximately half those of 1Q.
     -- The company also announced the departure of CFO Bruce Margetson. He
        will be succeeded by vice president of finance Julie Biagini on
        May 1.
     -- We are revising our 2001 revenue estimate to $44.0 million from
        $64.5 million and our 2001 EPS estimate to a loss of $0.95 per share
        from a loss of $0.91 per share.
     -- We think Endwave shares are stale money until the outlook for wireless
        equipment improves and the company makes substantial progress towards
        profitability.
 
     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, 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.
     Epoch Partners has been an underwriting manager or co-manager of Endwave
 Corporation in the last three years.
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64953378
 
 SOURCE  Epoch Partners, Inc.