Internet Technology (IT) Spending Deceleration Affects Near-Term Outlook For Mobile Computing and Communications Companies

Crawford Initiates Coverage of Mobile Communications Sector with Neutral

Ratings



Apr 11, 2001, 01:00 ET from U.S. Bancorp Piper Jaffray

    NEW YORK, April 11 /PRNewswire/ -- Although he remains bullish on the
 future prospects for the mobile computing and communications industry, U.S.
 Bancorp Piper Jaffray Senior Research Analyst William Crawford states in an
 in-depth industry report that he expects IT spending cuts to hamper the
 performance of mobile computing and communications stocks for the next
 two-to-three months.  Crawford believes slowing in both consumer and
 enterprise spending will adversely impact companies within the mobile
 computing and communications sector.
     "Companies within this sector are dependent on corporate spending
 decisions.  IT spending is declining and in some cases rather dramatically, in
 our opinion," said Crawford.  "While this is not news to many technology
 investors, we believe that IT spending cuts have not reached the level they
 eventually will reach.  In addition, we believe changes in consumer spending
 lag those of corporate IT spending initiatives, and therefore will decline
 further, as layoffs and corporate penny-pinching affect the expectations of a
 greater percentage of the population."
     Crawford today initiated coverage of Aether Systems, Inc. (NASDAQ:   AETH-
 12.62, #@), @Road, Inc. (NASDAQ:   ARDI-1.97, #@), GoAmerica (NASDAQ:   GOAM-2.01,
 #@), Pumatech, Inc. (NASDAQ:   PUMA-2.57, #) and Research In Motion Limited
 (NASDAQ:   RIMM-21.95, #@) with Neutral ratings.
     In addition, Crawford today initiated coverage of Palm, Inc, (NASDAQ:  
 PALM-6.87, #) and Handspring (NASDAQ:   HAND-11.40, #@) with Neutral ratings.
 In his report, Crawford cites two concerns about Palm, Inc. and Handspring --
 consumer spending and the large excess inventory issue at Palm, Inc.
     "We estimate Palm must work off approximately 1.5 million excess Personal
 Data Assistants (PDAs) from inventory, or nearly one quarter's worth of
 current demand," said Crawford.  "We expect deep price cuts to affect both
 Palm and Handspring revenues and gross margins."
     Once IT spending growth resumes, Crawford sees mobile communications and
 computing stocks rebounding with a vengeance.  In addition, Crawford uses
 consumer spending as an indicator for handheld stocks like Palm, Inc. and
 Handspring.
     "We are inclined to upgrade the enterprise group once we see evidence of a
 turnaround in IT spending, which would provide some upside to estimates and
 multiple expansion," said Crawford.  "With our handheld stocks, we look for
 consumer spending to at least bottom and better yet, turn up.  In addition, we
 will closely watch the impact of Palm's efforts and tactics to liquidate its
 excess inventory before recommending either Handspring or Palm."
     U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based U.S. Bancorp
 (NYSE:   USB), provides a full range of investment products and services to
 businesses, institutions and individuals.  The company's investment banking
 business has grown exponentially in the last several years by focusing on the
 needs of growth companies in the health care, technology, financial
 institutions, consumer and industrial growth sectors.  U.S. Bancorp Piper
 Jaffray has a national reputation for its expertise in fundamental research
 and equity and debt financing.  U.S. Bancorp offers a comprehensive range of
 financial solutions through U.S. Bank, First American Asset Management, U.S.
 Bancorp Libra Investments and U.S. Bancorp Piper Jaffray.  Securities products
 and services offered through U.S. Bancorp Piper Jaffray, Inc., member SIPC and
 NYSE, Inc., a subsidiary of U.S. Bancorp.
     Some or all of the following hedges may apply. (#) U.S. Bancorp Piper
 Jaffray, Inc., makes a market in the company's securities.  (~) An U.S.
 Bancorp Piper Jaffray, Inc., officer, director or other employee is a director
 and/or officer of the company. (@) Within the past three years, U.S. Bancorp
 Piper Jaffray, Inc., was managing underwriter of an offering of, or dealer
 manager of a tender offer for, the company's securities of an affiliate.
 Additional information is available upon request.  Not FDIC Insured.  No Bank
 Guarantee.  May lose value.
     This material is based on data obtained from sources we deem to be
 reliable; it is not guaranteed as to accuracy and does not purport to be
 complete.  This information is not intended to be used as the primary basis of
 investment decisions.  Because of individual client requirements, it should
 not be construed as advice designed to meet the particular investment needs of
 any investor.  It is not a representation by us or an offer or the
 solicitation of an offer to sell or buy any security.  Further, a security
 described in this release may not be eligible for solicitation in the states
 in which the client resides.  U.S. Bancorp Piper Jaffray individual officers,
 employees, or members of their families may own securities mentioned and may
 purchase or sell those securities in the open market or otherwise.  In the
 United Kingdom, this report may only be distributed or passed on to persons of
 the kind described in Article 11 (3) of the Financial Services Act of 1986
 (Investment Advertisements) (Exemptions) Order 1996 (as amended by the
 Financial Services Act 1986 Investment Advertisements) (Exemptions Order
 1997).
     U.S. Bancorp Piper Jaffray Inc. is a member of the National Association of
 Securities Dealers, CRD number 665.
 
 

SOURCE U.S. Bancorp Piper Jaffray
    NEW YORK, April 11 /PRNewswire/ -- Although he remains bullish on the
 future prospects for the mobile computing and communications industry, U.S.
 Bancorp Piper Jaffray Senior Research Analyst William Crawford states in an
 in-depth industry report that he expects IT spending cuts to hamper the
 performance of mobile computing and communications stocks for the next
 two-to-three months.  Crawford believes slowing in both consumer and
 enterprise spending will adversely impact companies within the mobile
 computing and communications sector.
     "Companies within this sector are dependent on corporate spending
 decisions.  IT spending is declining and in some cases rather dramatically, in
 our opinion," said Crawford.  "While this is not news to many technology
 investors, we believe that IT spending cuts have not reached the level they
 eventually will reach.  In addition, we believe changes in consumer spending
 lag those of corporate IT spending initiatives, and therefore will decline
 further, as layoffs and corporate penny-pinching affect the expectations of a
 greater percentage of the population."
     Crawford today initiated coverage of Aether Systems, Inc. (NASDAQ:   AETH-
 12.62, #@), @Road, Inc. (NASDAQ:   ARDI-1.97, #@), GoAmerica (NASDAQ:   GOAM-2.01,
 #@), Pumatech, Inc. (NASDAQ:   PUMA-2.57, #) and Research In Motion Limited
 (NASDAQ:   RIMM-21.95, #@) with Neutral ratings.
     In addition, Crawford today initiated coverage of Palm, Inc, (NASDAQ:  
 PALM-6.87, #) and Handspring (NASDAQ:   HAND-11.40, #@) with Neutral ratings.
 In his report, Crawford cites two concerns about Palm, Inc. and Handspring --
 consumer spending and the large excess inventory issue at Palm, Inc.
     "We estimate Palm must work off approximately 1.5 million excess Personal
 Data Assistants (PDAs) from inventory, or nearly one quarter's worth of
 current demand," said Crawford.  "We expect deep price cuts to affect both
 Palm and Handspring revenues and gross margins."
     Once IT spending growth resumes, Crawford sees mobile communications and
 computing stocks rebounding with a vengeance.  In addition, Crawford uses
 consumer spending as an indicator for handheld stocks like Palm, Inc. and
 Handspring.
     "We are inclined to upgrade the enterprise group once we see evidence of a
 turnaround in IT spending, which would provide some upside to estimates and
 multiple expansion," said Crawford.  "With our handheld stocks, we look for
 consumer spending to at least bottom and better yet, turn up.  In addition, we
 will closely watch the impact of Palm's efforts and tactics to liquidate its
 excess inventory before recommending either Handspring or Palm."
     U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based U.S. Bancorp
 (NYSE:   USB), provides a full range of investment products and services to
 businesses, institutions and individuals.  The company's investment banking
 business has grown exponentially in the last several years by focusing on the
 needs of growth companies in the health care, technology, financial
 institutions, consumer and industrial growth sectors.  U.S. Bancorp Piper
 Jaffray has a national reputation for its expertise in fundamental research
 and equity and debt financing.  U.S. Bancorp offers a comprehensive range of
 financial solutions through U.S. Bank, First American Asset Management, U.S.
 Bancorp Libra Investments and U.S. Bancorp Piper Jaffray.  Securities products
 and services offered through U.S. Bancorp Piper Jaffray, Inc., member SIPC and
 NYSE, Inc., a subsidiary of U.S. Bancorp.
     Some or all of the following hedges may apply. (#) U.S. Bancorp Piper
 Jaffray, Inc., makes a market in the company's securities.  (~) An U.S.
 Bancorp Piper Jaffray, Inc., officer, director or other employee is a director
 and/or officer of the company. (@) Within the past three years, U.S. Bancorp
 Piper Jaffray, Inc., was managing underwriter of an offering of, or dealer
 manager of a tender offer for, the company's securities of an affiliate.
 Additional information is available upon request.  Not FDIC Insured.  No Bank
 Guarantee.  May lose value.
     This material is based on data obtained from sources we deem to be
 reliable; it is not guaranteed as to accuracy and does not purport to be
 complete.  This information is not intended to be used as the primary basis of
 investment decisions.  Because of individual client requirements, it should
 not be construed as advice designed to meet the particular investment needs of
 any investor.  It is not a representation by us or an offer or the
 solicitation of an offer to sell or buy any security.  Further, a security
 described in this release may not be eligible for solicitation in the states
 in which the client resides.  U.S. Bancorp Piper Jaffray individual officers,
 employees, or members of their families may own securities mentioned and may
 purchase or sell those securities in the open market or otherwise.  In the
 United Kingdom, this report may only be distributed or passed on to persons of
 the kind described in Article 11 (3) of the Financial Services Act of 1986
 (Investment Advertisements) (Exemptions) Order 1996 (as amended by the
 Financial Services Act 1986 Investment Advertisements) (Exemptions Order
 1997).
     U.S. Bancorp Piper Jaffray Inc. is a member of the National Association of
 Securities Dealers, CRD number 665.
 
 SOURCE  U.S. Bancorp Piper Jaffray

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