Robertson Stephens Daily Growth Stock Update on AMCC DCTM JDSU PMCS TTEK VTSS ASCX ATSN AUDC BHE CLRN CMRC CMTN CY EMC EMLX GTW IMNY INKT IMSC LGTO MCRL NTRO NETA NT NUAN PKTR PRIA TVLY ZIGO ATML MLTX SDS

Apr 20, 2001, 01:00 ET from Robertson Stephens

    SAN FRANCISCO, April 20 /PRNewswire Interactive News Release/ -- The
 following is being issued by Robertson Stephens:
 
     Rating Changes:
 
     Applied Micro Circuits Corporation
     (Nasdaq: AMCC) $28.92
     Upgrading to Buy from Long-Term Attractive
 
     F2002E EPS: $0.15, down from $0.36
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "The critical catalysts that need to be achieved in order to derive an
 overall inflection point in the current investment dynamic for components
 stocks are as follows, in our view: 1) Resolution of end-demand worries, 2)
 Resolution of inventory overhang and 3) Appropriate valuation metrics," said
 Veerappan. "We believe that we are currently able to say that resolution of
 only one of the above 3 metrics (the inventory overhang) appears to be
 underway, albeit at the early stages. Regarding end-demand, we believe that
 early data coming in from the service providers remains inconclusive as yet
 both in terms of unit demand and pricing.  This metric is the biggest and most
 important variable and therefore represents as much an opportunity as it does
 risk. Finally, on the valuation front, with so many moving parts as to when
 the bottom can be achieved (June quarter or September quarter) and at what
 level such a bottom will be arrived at, we believe that the best way to value
 companies currently is to look beyond the near-term.  This inevitably
 obfuscates things, but nevertheless, our current assumption is that leading
 companies such as AMCC can achieve their peak earnings power again (i.e. to
 mirror levels achieved in C00) somewhere between C03 and C04."
 
     Documentum, Inc.
     (Nasdaq: DCTM) $16.10
     Downgrading to Long-Term Attractive from Buy
     2001E Operating EPS: ($0.83), down from ($0.44)
     2002E Operating EPS: $0.11, down from $0.38
 
     Mark Perutz, eBusiness Infrastructure
     "While the Q1:01 revenue reported by Documentum yesterday was in-line with
 the company's pre-announcement, Operating EPS was significantly lower than
 expected," said Perutz. "Revenue was $45.3MM, a shortfall of 24% off our
 original $59.3MM estimate, and in-line with our revised estimate.  We believe
 that the revenue shortfall was due to the weak IT spending environment
 plaguing the entire software sector, and not due to a weak product offering,
 or weakness specific to the content management market.  Operating EPS was
 $(0.40), dramatically lower than our revised estimate of $(0.29), and the
 First Call consensus of $(0.18).  The surprising size of this loss was a
 combination of the revenue shortfall, and operating expenses that were not
 effectively controlled by management.  Documentum announced layoffs and a
 restructuring charge that will provide little benefit to Operating EPS for
 2001. We are maintaining our revised revenue estimates, and substantially
 reducing our estimates for Operating EPS.  Although the tight IT spending
 environment makes this a challenging time for all eBusiness software vendors,
 we feel that poor expense management has unnecessarily added the burden of
 restructuring.  While we believe in the long-term growth prospects for
 Documentum and its target market, given the additional near-term risks
 introduced by this restructuring we are reducing our rating to Long Term
 Attractive."
 
     JDS Uniphase Corporation
     (Nasdaq: JDSU) $25.90
     Upgrading to Buy from Long-Term Attractive
     F2001E EPS: $0.58, down from $0.64
     F2002E EPS: $0.37, down from $0.56
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "The critical catalysts that need to be achieved in order to derive an
 overall inflexion point in the current investment dynamic for components
 stocks are as follows, in our view: 1) Resolution of end-demand worries, 2)
 Resolution of inventory overhang and 3) Appropriate valuation metrics," said
 Veerappan. "We believe that we are currently able to say that resolution of
 only one of the above 3 metrics -- the inventory overhang -- appears to be
 underway, albeit at the early stages. Regarding end-demand, we believe that
 early data coming in from the service providers remains inconclusive as yet
 both in terms of unit demand and pricing.  This metric is the biggest and most
 important variable and therefore represents as much an opportunity as it does
 risk. Finally, on the valuation front, with so many moving parts as to when
 the bottom can be achieved (June quarter or September quarter) and at what
 level such a bottom will be arrived at, we believe that the best way to value
 companies currently is to look beyond the near-term.  This inevitably
 obfuscates things, but nevertheless, our current assumption is that leading
 companies such as JDS-Uniphase can achieve their peak earnings power again
 (i.e., to mirror levels achieved in C00) somewhere between C03 and C04. To
 that extent, we shall refrain from a group upgrade, but shall rather focus on
 the proven leaders; we are therefore upgrading JDS-Uniphase stock from a Long-
 Term Attractive rating to a Buy."
 
     PMC-Sierra, Inc.
     (Nasdaq: PMCS) $41.40
     Upgrading to Buy from Long-Term Attractive
     2001E EPS: $0.00, down from $0.25
     2002E EPS: $0.27, down from $0.55
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "PMC-Sierra reported essentially in-line results with revised estimates,"
 said Veerappan. "The guidance is for a sequential revenue decline of 10% Q-Q.
 We are upgrading PMC-Sierra stock from a Long-Term Attractive rating to a Buy.
 Our assumptions are that the end-market that PMC-Sierra participates in will
 grow between 30-50% on a secular basis, that PMC-Sierra will grow at the high-
 end of that range and that that company ought to get a premium multiple to its
 growth rate because of its attractive margin structure (75% gross margins) and
 cash generation potential. We are thus instituting a 12-month price target of
 $55 based on a 60-70x P/E multiple on expected earnings of $0.82 in EPS for
 C03 for the company.  This results in an appreciation potential of
 approximately 35% from current levels."
 
     Tetra Tech, Inc.
     (Nasdaq: TTEK) $24.34
     Downgrading to Buy from Strong Buy
     F2001E EPS: $0.97, up from $0.96
     F2002E EPS: $1.10, down from $1.12
 
     Steven Birer, eServices
     "Yesterday, Tetra Tech reported in-line results with earnings meeting
 Street expectations," said Birer. "FQ2:01 gross revenues of $234.3 million
 were $4.3 million ahead of our $230.0 million estimate and net revenues of
 $179.7 million were $4.7 million ahead of our $175.0 million estimate. On the
 bottom-line, the company reported EPS of $0.25, in-line with our estimate and
 Street expectations.  The company continues its trend of double-digit organic
 growth but experiences slower growth in wireline and wireless engineering and
 infrastructure (communications) businesses. For FY2001, we have slightly
 adjusted our model to institute a more conservative outlook for the remainder
 of the year.  Specifically, we are reducing our 2001 net revenue estimate from
 $737.1 million to $730.8 million and our EPS estimate from $1.12 to $1.10.
 Both of these changes place us at the bottom of management's guidance.
 Trading at 22.1x our FY01 EPS estimate, we believe that shares of Tetra Tech
 remain attractively valued.  We are, however, lowering our rating on Tetra
 Tech from Strong Buy to Buy based on our belief that the company's overall
 market capitalization no longer reflects a discount valuation for its wireless
 engineering unit.  As such, we do not believe that shares of Tetra Tech
 currently merit our strongest rating."
 
     Vitesse Semiconductor Corporation
     (Nasdaq: VTSS) $35.90
     Upgrading to Buy from Long-Term Attractive
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "The critical catalysts that need to be achieved in order to derive an
 overall inflexion point in the current investment dynamic for components
 stocks are as follows, in our view: 1) Resolution of end-demand worries, 2)
 Resolution of inventory overhang and 3) Appropriate valuation metrics," said
 Veerappan. "We believe that we are currently able to say that resolution of
 only one of the above 3 metrics -- the inventory overhang -- appears to be
 underway, albeit at the early stages.  Regarding end-demand, we believe that
 early data coming in from the service providers remains inconclusive as yet
 both in terms of unit demand and pricing.  This metric is the biggest and most
 important variable and therefore represents as much an opportunity as it does
 risk. Finally, on the valuation front, with so many moving parts as to when
 the bottom can be achieved (June quarter or September quarter) and at what
 level such a bottom will be arrived at, we believe that the best way to value
 companies currently is to look beyond the near-term.  This inevitably
 obfuscates things, but nevertheless, our current assumption is that leading
 companies such as Vitesse can achieve their peak earnings power again (i.e. to
 mirror levels achieved in C00) somewhere between C03 and C04. To that extent,
 we shall refrain from a group upgrade, but shall rather focus on the proven
 leaders; we are therefore upgrading Vitesse stock from a Long-Term Attractive
 rating to a Buy."
 
     Estimate Changes:
 
     Advanced Switching Communications, Inc.
     (Nasdaq: ASCX) $4.65
     Long-Term Attractive
     2001E EPS: ($0.18), down from ($0.05)
     2002E EPS: ($0.17), down from $0.15
 
     Paul Johnson, Communications/Networking
     "ASC reported results in the quarter in line with our and Street
 expectations," said Johnson.  "We are dramatically reducing revenue estimates
 due to what we believe to be the company's severe lack of visibility.  The
 March quarter was severely backend loaded.  In light of the weak carrier
 spending environment, we believe it is difficult to forecast near term
 revenues.  As a consequence, we are also cutting EPS estimates. We are
 maintaining our Long Term Attractive rating on shares of Advanced Switching
 Communications."
 
     Artesyn Technologies, Inc.
     (Nasdaq: ATSN) $14.85
     Long-Term Attractive
     2001E Cash EPS: $0.35, down from $0.50
     2002E Cash EPS: $0.95, down from $1.26
 
     J. Keith Dunne, Electronic Manufacturing Products & Services
     "Artesyn reported 1Q01 Cash EPS loss of ($0.07), $0.03 higher than our
 ($0.10) estimate and previous guidance of ($0.05-$0.10) given after the
 company's March 15 pre-announcement, on higher than expected revenues of
 $150.3MM (vs. $140.0MM est), reflecting continued end market softness," said
 Dunne.  "We are lowering 2Q01 and FY01 Cash EPS to $0.02 and $0.30-0.35 from
 $0.07 and $0.50, respectively, to reflect the continued negative impact of
 excess inventory in the channel, which could persist in 2H:FY01, order
 cancellations and pushouts, and manufacturing inefficiencies.  We are
 maintaining our LTA Rating.  ATSN is trading for 15.6x our Cal-02E cash EPS, a
 28% discount to its peer group, respectively.  While we believe that most of
 the negative news is reflected in the current price, we believe it is prudent
 to obtain more clarity into the 2H:FY revenue outlook to find a catalyst for
 significant and sustainable price appreciation."
 
     AudioCodes Ltd.
     (Nasdaq: AUDC) $8.50
     Long-Term Attractive
     F2001E EPS: $0.08, down from $0.26
     F2002E EPS: $0.23, down from $0.38
 
     Victor Lim, Communications Components/Semiconductor Devices
     "On April 19, AudioCodes reported Q1:01 results, with revenue of $13.6
 million (down 40% Q-Q) and EPS from continuing operations of $0.05 (down 73%
 Q-Q), " said Lim. "This is in-line with our estimates and at the low end of
 the company's pre-announced guidance on March 14, 2001. The company's new
 outlook for Q2:01 is for revenue of $12-14 million and EPS of $0.01 to $0.04.
 Given limited visibility, the company did not provide guidance for C01 and
 C02. Should we see (1) a continued reduction in order push-outs, (2) a
 confirmed stabilization in backlog, (3) a ramp in volume production at
 customers other than Clarent, (4) a ramp in sales in modules and media
 gateways, and (5) a decline in accounts receivables and inventory from current
 levels, we would re-evaluate our Long-term Attractive rating and our estimates
 for AudioCodes given our belief that the company remains a leading enabler of
 VoIP."
 
     Benchmark Electronics, Inc.
     (NYSE:   BHE) $27.80
     Buy
     2001E Cash EPS: $1.05, down from $1.35
     2002E Cash EPS: $1.30, down from $1.70
 
     J. Keith Dunne, Electronic Manufacturing Products & Services
     "BHE reported 1Q01 Cash EPS of $0.41, up 70% from $0.24 last year on a 24%
 sales gain," said Dunne. "1Q01 sales and EPS were in line with our recently
 lowered estimates, though the outlook has weakened. We are lowering our Cash
 EPS estimates to $1.05 from $1.35 and to $1.30 from $1.70 in FY01E/FY02E
 respectively, mostly to reflect a sharper reduction in margins on 5-7% lower
 sales. We are maintaining our rating given relatively strong cash flow and the
 ability to lower cap. exp. 50E% without impacting long-term growth. BHE is
 trading for an Enterprise Value of 7.7x Cal-01E EBITDA, a 25-30% discount to
 smaller EMS providers and half the its larger competitors."
 
     Clarent Corporation
     (Nasdaq: CLRN) $14.24
     Buy
     2001E EPS: ($0.49), down from $0.21
     2002E EPS: $0.11, down from $0.66
 
     Paul Johnson, Communications/Networking
     "Clarent reported strong results for the third quarter, with revenues in
 line with our and street expectations -- impressive, in our opinion, in light
 of the apparent carrier capital spending slowdown, while EPS was slightly
 below as the company chose to invest in its business -- primarily R&D and
 sales and marketing," said Johnson. "We are lowering our estimates for fiscal
 2001 and 2002 as Clarent weathers the weakened North American telecom capex
 environment while continuing to accelerate its investment in sales & marketing
 and R&D as it rolls out its new local, carrier and enterprise products.   For
 revenues, the specific factors leading to our decreased estimates are a lack
 of visibility to due a general telecom spending slowdown, particular weakness
 in North America, and the fact that Clarent is still in the early stages of
 deploying its softswitch product.  With respect to earnings, a combination of
 the lower revenues, continued investment in R&D and sales and marketing, and
 lower expected gross margins due to a high mix of hardware in the near term
 has caused us to reduce our estimates substantially. Clarent is rated a Buy."
 
     Commerce One, Inc.
     (Nasdaq: CMRC) $13.71
     Long-Term Attractive
     2001E EPS: ($0.23), down from ($0.18)
 
     Eric Upin, Business-to-Business eCommerce
     "Per the company's pre-release earlier this month, Commerce One
 experienced a Q1:01 shortfall -- missing our original Q1 estimate by 16% and
 our original Q1 cash EPS estimate by $0.06," said Upin. "(In March, we lowered
 our Q1 and FY01 estimates). We are making only minor adjustments to our
 recently lowered estimates. We are maintaining our Long-Term Attractive rating
 on the stock. While we continue to believe that Commerce One and SAP, in
 concert, have the potential to be one of the leading forces in B2B -- we
 believe the near-term risks associated with declining visibility, a softening
 in the company's core markets, and future quarter estimates will weigh heavily
 on the stock moving forward. With the stock up close significantly since April
 4, we believe it presents a challenging near-term risk/reward picture.
 Accordingly, we are maintaining our Long-Term Attractive rating at this time."
 
     Copper Mountain Networks, Inc.
     (Nasdaq: CMTN) $3.64
     Long-Term Attractive
     2001E EPS: ($0.84), up from ($0.98)
     2002E EPS: ($0.79), up from ($0.88)
 
     Paul Johnson, Communications/Networking
     "Copper Mountain reported in-line results for the March quarter that
 modestly exceeded our and street expectations," said Johnson. "While modestly
 increasing our earnings estimates for fiscal 2001 and 2002 as we fine tune our
 estimates by lowering our revenue and operating cost expectations, the latter
 due to some cutbacks in employee headcount.  These forecasts are based on what
 we believe to be very conservative assumptions regarding Copper Mountain's
 future growth (we have essentially taken all growth out of our assumptions),
 and while these may appear bleak, they merely reflect the lack of visibility
 the overall DSL market is experiencing.  Despite that, we remain bullish on
 the DSL industry over the long-term, expect overall visibility may start to
 improve in a few quarters, and believe our estimates are highly conservative.
 As such, any number of factors could contribute to the company performing
 better than our worst-case-scenario estimates over the next several quarters.
 Copper Mountain is rated Long Term Attractive."
 
     Cypress Semiconductor Corporation
     (NYSE:   CY) $21.55
     Long-Term Attractive
     2001E EPS: $0.27, down from $0.41
     2002E EPS: $0.29, down from $0.35
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Cypress reported 1Q01 EPS of $0.25, ahead of our and the consensus
 estimate of $0.23," said Rothdeutsch. "Revenues of $262.3 million were down
 29% QoQ, in line with our estimate and the company's most recent guidance. As
 a result of weak end market demand and the ongoing inventory correction facing
 communications markets, we are lowering our F01 EPS estimates from $0.41 to
 $0.27.  Our F02 revenue and EPS estimates are going from $957.7 million and
 $0.35 to $952 million and $0.29, respectively.  The company saw the rate of
 order cancellations in its wide-area networking business stop about 4 weeks
 ago and cancellations in its wireless infrastructure business stop around 8
 weeks ago, indicating to us that order rates are now bottoming, albeit at
 lower levels.  Still, we remain cautious on Cypress' near-term prospects
 pending better visibility into a resumption of end market demand. We are
 maintaining our LTA rating on CY."
 
     EMC Corporation
     (NYSE:   EMC) $42.81
     Long-Term Attractive
     2002E Operating EPS: $1.05, New
 
     Dane Lewis, Infrastructure: Systems & Software
     "EMC reported Q1:01 results in line with preannounced estimates," said
 Lewis. "EMC reported revenues of $2.34 billion, in line with our estimate.
 This represents a 10.5% sequential decline and 28.7% year/year growth.  EPS
 was $0.18, which was $0.01 better than our estimate and in-line with
 preannounced estimates. As EMC stated when it preannounced last week, Q1:01's
 results were affected by purchasing delays as IT managers continued to reset
 their budgets. We are fine tuning our estimates:  For Q2:01, we are slightly
 raising our revenue estimate $2.43 billion from $2.31 billion and our earnings
 estimate from $0.17 to $0.18.  For F2001, we have a revenue estimate of $
 billion and our EPS estimate from $0.97 to $0.99.  We have also introduced
 2002 revenue and EPS estimates of $13.37 billion and $1.05."
 
     Emulex Corporation
     (Nasdaq: EMLX) $30.87
     Buy
     F2001E EPS: $0.64, down from $0.78
     F2002E EPS: $0.51, down from $0.84
 
     Ara Mizrakjian, Communications/Networking
     "Emulex reported fiscal third quarter (March) revenues and profitability
 in line with the company's pre-announcement, albeit slightly below our
 estimates, and significantly below our original expectations for the quarter,"
 said Mizrakjian. "Although the company pre-announced on the morning of April
 5th, 2001, we did not reduce estimates at that time because we had lowered
 estimates for entire the group on March 30th, 2001 to reflect the continuing
 difficulty the overall storage networking market had been experiencing. In
 light of the fact that we didn't lower estimates in response to Emulex'
 preannouncement, we are lowering our estimates to reflect the performance in
 the quarter.  While our changes are dramatic, we believe the worst may be
 behind us, and that although outright recovery may not be right around the
 corner, the great variability in demand that many of the storage networking
 companies have experienced over the past several months is beginning to
 diminish, and as a result, some measure of predictability has returned to
 these businesses.  We believe Emulex holds an excellent position within a
 rapidly growing market that has suffered a large and protracted hiccough. We
 are reiterating our Buy rating on Emulex."
 
     Gateway, Inc.
     (NYSE:   GTW) $18.15
     Long-Term Attractive
     2001E EPS: $0.20, down from $0.25
     2002E EPS: $0.79, down from $1.11
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Gateway reported 1Q01 operating EPS at ($0.01), a penny lower than our
 estimates and in line with consensus," said Rothdeutsch. "We are cutting our
 F2001 revenue and EPS estimates from $9.3 billion and $0.25 to $9.0 billion
 and $0.20, respectively.  Our F2002 revenue and EPS estimates are going from
 and $10.2 billion and $1.11 to $9.7 billion and $0.79. In our view, Gateway is
 still in the clean-up stage of its recovery plan at a time when the
 environment is highly challenging even for PC companies whose operations are
 on track.  Therefore, we are maintaining our Long-Term Attractive rating on
 GTW."
 
     I-many, Inc.
     (Nasdaq: IMNY) $15.41
     Buy
     2001E EPS: $0.07, down from $0.10
     2002E EPS: $0.37, down from $0.53
 
     Michael Beckwith, Business-to-Business eCommerce
     "In a very difficult environment for enterprise software companies, I-many
 delivered solid Q1:01 results on Thursday -- exceeding our revenue estimate by
 6% and topping consensus cash EPS estimates by $0.02," said Beckwith. "Total
 revenue was $15.3 million, which represents 23% sequential and 125% yr/yr
 growth. At this time, we are making very modest adjustments to our model in-
 line with company guidance. We believe I-many represents one of the higher-
 quality and safer B2B names in the market. With its strong toehold in the
 healthcare vertical, expanded distribution via the Accenture partnership, and
 with little direct competition in complex contract management automation, we
 believe I-many is well positioned to deliver strong yr/yr returns over a
 multi-year period. As a result, we believe I-many merits increased investor
 attention and we reiterate our Buy rating at this time."
 
     Inktomi Corporation
     (Nasdaq: INKT) $7.01
     Long-Term Attractive
     F2001E Operating EPS: ($0.51), down from ($0.40)
     F2002E Operating EPS: ($0.38), New
 
     Dane Lewis, Infrastructure: Systems & Software
     "Inktomi reported FQ1:01 results in line with pre-announced estimates,"
 said Lewis. "Revenues and EPS were in line with preannounced estimates at
 $37.5 million and $(0.22).  While Inktomi is facing a difficult market
 environment, the company expects to drive growth from multiple areas:  (1)
 Streaming media delivery:  management noted strong demand for caching and
 streaming media delivery, (2) Focus on enterprise customers in both search and
 with the development of its caching appliance, and (3) Wireless initiatives.
 For FQ3:01, we are raising our revenue estimate from $36.8 million to $38.0
 million and our EPS estimate from $(0.14) to $(0.18).  For F2001, we are
 raising our revenue estimate from $187.5 million to $191.0 million and
 lowering our EPS estimate from $(0.40) to $(0.51). We are also introducing
 2002 estimates.  For F2002, we are estimating revenues of $211.6 million and
 EPS of $(0.38).  We maintain our LTA rating."
 
     Integrated Measurement Systems, Inc.
     (Nasdaq: IMSC) $13.45
     Buy
     2001E Operating EPS: $0.67, down from $0.81
     2002E Operating EPS: $0.90, New
 
     John Barr, Design Enabling Technologies
     "Integrated Measurement Systems announced 1Q01 revenue of $18.5 million
 and EPS of $0.22, above our revenue estimate of $17.7 million and just below
 our EPS estimate of $0.23," said Barr. "Excluding a foreign exchange loss of
 $160K, EPS would have been $0.04. We have decreased our 2001 revenue estimate
 from $73.7 million to $68.2 million and our EPS estimate from $0.81 to $0.67.
 We have increased our software revenue and gross margin estimates, but these
 are more than offset by a decrease in test hardware revenue and increase in
 expenses as a percentage of revenue. We have initiated 2002 estimates of $78.7
 million of revenue and $0.90 EPS. We reiterate our Buy rating on IMSC.  IMSC
 has $4.40 per share of cash with a stock price of $13.45 per share.  The
 business is valued at just $78 million or 1.0x estimated 2002 revenues. In 6-
 12 months, we believe IMSC could be valued at 20x estimated 2002 EPS of $0.90
 or $18.00 per share.  This 20 multiple is consistent with the company's
 "apples to apples" 15-20% long term growth rate and represents the potential
 for 34% upside to the current $13.45 per share price."
 
     Legato Systems, Inc.
     (Nasdaq: LGTO) $11.70
     Long Term Attractive
     2001E Operating EPS: $0.03, down from $0.06
 
     Dane Lewis, Infrastructure: Systems & Software
     "Legato reported 1Q01 earnings results, in line with our estimates," said
 Lewis. "We are fine-tuning estimates and introducing 2002 numbers:  For Q201,
 we are maintaining our revenue estimate of $66.3 million and  our EPS estimate
 of $(0.03).  For F2001, we are estimating  $277.5 million in revenues while
 lowering our EPS estimate from $0.06 to $0.03 as the company has hired ahead
 of plan. We are also introducing 2002 estimates of $355.3 million in revenues
 and EPS of $0.27.  We maintain our LTA rating."
 
     Micrel, Incorporated
     (Nasdaq: MCRL) $35.66
     Strong Buy
     2001E EPS: $0.38, down from $0.51
     2002E EPS: $0.64, down from $0.80
 
     Arun Veerappan, Communication Components/Semiconductor Devices
     Tore Svanberg, Analog & Mixed-Signal Semiconductor Devices
     "On April 19, Micrel reported March quarter revenues of $64.9 million,
 down 30% sequentially and down 4% from the same quarter a year ago," said
 Veerappan and Svanberg. "Gross margin declined 450bps and came in at 55.5%,
 47bps above our expectation. Expenses were $20.9 million, $1.1 million below
 our estimate. Resultant EPS was $0.12, two pennies above our estimate and the
 Street consensus estimate. In terms of the outlook, the company has guided for
 a 15% to 25% sequential decline in revenue for the June quarter with a 2H:01
 recovery driven by wireless and computing. Overall, we believe Micrel remains
 very well positioned to weather the current downturn with great prospects
 ahead as the company continues to focus on analog innovation, end market
 diversification and a strengthening management team."
 
     Netro Corporation
     (Nasdaq: NTRO) $5.05
     Market Performer
     2001E EPS: ($0.58), down from ($0.46)
 
     Paul Silverstein, Communications/Networking
     "Netro reported fiscal first quarter 2001 revenues slightly above the
 company's pre-announced expectations of $8.5 million," said Silverstein.
 "Netro reported revenues of $9.1 million, representing an approximately 13%
 decline year over year, and a loss of ($0.64) per share.  Reported gross
 margins were (236%).  Reported earnings and gross margins include a $23.0
 million reserve for unused inventory and other excess materials.  Excluding
 this reserve, Netro experienced a loss of ($0.15) per share and gross margins
 of 17.8%.  With or without the reserve, these results are significantly below
 our original forecasts of $16.0 million and ($0.11), respectively. Netro
 attributed the revenue shortfall this quarter to the difficult economic
 environment and slowdown in carrier spending, as well as to a disruption in
 orders from Lucent.  We are fine-tuning our fiscal 2001 estimates.  We are
 modeling little in the way of top or bottom line growth, as we believe Netro
 has no visibility as to revenues for the next several quarters given the
 significant disruption in its OEM relationship with Lucent and its
 difficulties in Europe.  While the company is trading at well below cash, with
 $357.2 million on its balance sheet and a burn rate of approximately $10
 million per quarter, we do not believe there is any upside to Netro's stock
 until the company's situation stabilizes.  We are therefore maintaining our
 Market Performer rating on the shares of Netro."
 
     Network Associates, Inc.
     (Nasdaq: NETA) $9.27
     Buy
     2001E Operating EPS: ($0.17), down from $0.17
     2002E Operating EPS: $0.32, New
 
     Dane Lewis, Infrastructure: Systems & Software
     "Network Associates beat our Q1:01 revenue estimate and slightly missed
 our EPS estimate," said Lewis. "Company's new CEO executed on several of the
 initiatives he had laid out at the beginning of the quarter including
 strengthening growth in international sales and streamlining the product line.
 We are fine-tuning our revenue estimate for FY2001, however, lowering our EPS
 estimate. We are also introducing 2002 estimates. We are fine-tuning our
 revenue estimate for FY2001 from $751 million to $750 million. We are lowering
 our EPS estimate from $0.17 to $(0.17). We expect the company to turn
 profitable and cash flow positive in 2H:01. We expect revenues of $953 million
 in revenues and $0.32 EPS for FY2002."
 
     Nortel Networks Corporation
     (NYSE:   NT) $17.80
     Buy
     2001E EPS: ($0.05), down from $0.07
     2002E EPS: $0.49, down from $0.57
 
     Paul Silverstein, Communications/Networking
     "Nortel reported first quarter revenues and EPS in-line with our
 expectations, which were revised after the company's second pre-announcement
 of the quarter on March 27th, 2001," said Silverstein. "Revenues of $6.18
 billion and a loss of ($0.12) per share compare to our $6.10 billion and
 ($0.12) forecasts, but are significantly below the company's first pre-
 announced guidance issued on February 15th, 2001. Nortel attributed the
 shortfall in revenues and earnings to the continued downturn in the U.S.
 economy and capital expenditures by U.S. carriers.  We are further
 significantly reducing our revenue forecast for each of fiscal 2001 and fiscal
 2002. We are maintaining our Buy recommendation on Nortel's shares given the
 depth and breadth of its product portfolio addressing the strongest areas of
 next-generation communications infrastructure, namely optical, wireless, and
 packet infrastructure.  We expect Nortel to benefit from the expense
 reductions it initiated in the March quarter, which should position the
 company for a strong improvement in profitability upon recovery in carrier
 capital expenditures in the U.S."
 
     Nuance Communications, Inc.
     (Nasdaq: NUAN) $15.69
     Buy
     2001E EPS: ($1.41), down from ($1.04)
     2002E EPS: ($0.64), down from ($0.05)
 
     Marianne Wolk, Wireless Data and Telecom Software
     "Nuance reported March quarter revenue and EPS of $11MM and ($0.36),
 essentially in line with our $10MM and ($0.35) estimates," said Wolk. "These
 numbers were consistent with the company's March 15th announcement of lower
 than expected revenues (previous estimates were $18MM and ($0.11)).  License
 revenues of $5.7MM were well below our $8.5MM estimate, a drop that signals
 more severe customer spending freezes then we had anticipated in our worst
 case scenario.  Service revenues held up better at $5.3MM, actually showing a
 small sequential increase.  We are reducing our estimates in the face of
 severely limited visibility to a turnaround. We expect Nuance's shares to open
 lower this morning as a result of these results. As with the company's March
 15 preannouncement, we expect the company's rich cash position to provide
 support.  Assuming a more modest burn rate following pending cost cuts ($10-
 $15mm per quarter, rather than $22mm), we project net cash should fall from
 $6.45 to $4.00 per share by the time it breaks even. Given this range, and a
 historic bottom near 1.5-2.0x cash, we believe the stock should continue to
 find support near at  $8-$10 per share."
 
     Packeteer, Inc.
     (Nasdaq: PKTR) $6.11
     Buy
     2001E EPS: ($0.07), up from ($0.19)
     2002E EPS: $0.20, up from ($0.08)
 
     Paul Johnson, Communications/Networking
     "Packeteer reported the March quarter slightly better than the March 21,
 2001 preannounced expectations, albeit below our original estimates for the
 March quarter," said Johnson. "Packeteer attributed the majority of the
 revenue shortfall this quarter to a softness in customer orders amidst the
 U.S. economic downturn and slowdown in IT capital spending.  The company
 experienced a particular softness in orders from its large corporate customers
 in the U.S. and saw a moderate slowdown in orders from Asia.  European sales
 remained on track, although the company realizes there may be upcoming
 weakness in the international markets. We are raising our revenue expectations
 for fiscal 2001 and 2002 fairly substantially.  Despite the financial
 disappointment in the March quarter, management articulated aggressive revenue
 growth in each of the next three quarters, within minimal guidance for fiscal
 2002.  Although we are impressed with management's confidence in the business,
 we are a bit concerned that the company does not have the necessary visibility
 to fully support these bold claims.  We are raising our estimates to reflect
 this higher guidance.  Packeteer is rated a Buy."
 
     PRI Automation, Inc.
     (Nasdaq: PRIA) $18.95
     Long-Term Attractive
     F2001E EPS: ($0.38), up from ($0.53)
     F2002E EPS: $0.66, up from $0.42
 
     Sue Billat, Semiconductor Equipment/Foundries
     "PRI Automation reported FQ2 loss (excluding one time charges) of $0.38
 per share, above our and consensus expectations for a loss of $0.43 per share
 due to higher than expected share count that diluted the extent of loss," said
 Billat. "To reflect the company's recent cost cutting measures, we are raising
 our EPS estimates for F2001 to a loss of $0.38 (from a loss of $0.53) on
 revenues of $348.0 million (formerly $340.9 million) and for F2002 to a profit
 of $0.66 (formerly a profit of $0.42) on revenues of $389.5 million.  At 21.3x
 our CY02 estimates, PRI is trading at a discount to many of its front-end
 peers. However, we believe PRI's manufacturing inefficiencies are driving it
 into a loss position, while we expect most of the other major equipment
 companies to stay profitable. Accordingly, we are maintaining our LTA rating
 on PRIA."
 
     Travelocity.com Inc.
     (Nasdaq: TVLY) $24.95
     Buy
     2001E EPS: $0.17, up from $0.01
     2002E EPS: $0.40, up from $0.32
 
     Lauren Cooks Levitan, Branded Internet
     "Following Travelocity's announcement of Q1 results Wednesday evening, and
 yesterday's conference call with management, we are upwardly revising our 2001
 revenue estimate to $321 million from $304.5 million, and our cash EPS
 estimate to $0.17 from $0.01," said Levitan. "We believe investors should
 react positively to Travelocity's announcement and prospects for ongoing
 revenue and earnings expansion. Despite a 77% appreciation in TVLY shares
 (versus a 19% increase in the NASDAQ) in recent weeks, the stock remains 10-
 15% below the high $20s target price implied by our discounted cash flow
 assumptions. As a result, we believe shares of Travelocity remain an
 attractive investment opportunity, particularly for longer-term oriented
 investors."
 
     Zygo Corp.
     (Nasdaq: ZIGO) $28.06
     Buy
     F2001E EPS: $0.65, up from $0.46
     F2002E EPS: $1.01, up from $0.74
 
     Sue Billat, Semiconductor Equipment/Foundries
     "Zygo's operating EPS of $0.20 exceeded our estimate of $0.13 and
 consensus of $0.14 driven by stronger than expected revenues across the board
 and higher gross margins," said Billat. "Despite the weak outlook from leading
 telecom component suppliers, Zygo's telecom division delivered 45% sequential
 growth. Bookings dropped 52% to $7.4 million but exceeded our expectations. We
 believe Zygo continues to see strong demand from its key customer and has just
 received a major order from another customer, and that Zygo's telecom products
 are used in advanced telecom systems with little exposure to the overcapacity
 that currently plagues the industry. We are raising our EPS estimates for FQ4
 to $0.23 (from $0.21) on revenues of $39.0 million (formerly $32.0 million)
 and for F2002 to $1.01 (from $0.74) on revenues of $161.0 (from $144.5
 million) to reflect better operational leverage on higher sales. At 25.5x our
 CY02 estimates, Zygo is trading at a discount to the front end semiconductor
 equipment companies average as well as the optical component manufacturing
 equipment average. Given the company's growth opportunities in the emerging
 optical component and manufacturing equipment sector, we reiterate our Buy
 rating on the stock."
 
     Comments:
 
     Atmel Corp.
     (Nasdaq: ATML) $12.47
     Buy
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Atmel reported 1Q01 EPS of $0.12, in line with both our and the consensus
 estimates," said Rothdeutsch. "Revenues of $525.9 million were down 8.6% QoQ,
 in line with our estimate and the company's revised guidance. Our revenue and
 EPS estimates remain intact. Although we are cautious on the near-term
 prospects for Atmel pending better visibility into a resumption of end-market
 demand, we remain optimistic about Atmel's long-term prospects given the
 company's strong product portfolio and low-cost manufacturing expertise which
 serve the company well, particularly when wireless end-market demand resumes.
 We are reiterating our Buy rating on ATML and 12-month price target of $16."
 
     Multex.com Inc.
     (Nasdaq: MLTX) $14.90
     Long-Term Attractive
     2001E EPS: $0.50, New
     2002E EPS: $0.87, New
 
     Justin Hughes, Brokerage and Asset Management
     "Multex reported 1Q01 EPS of $0.09, in-line with estimates," said Hughes.
 "We are establishing 2001 and 2002 EPS estimates of $0.50 and $0.87,
 respectively. More importantly, our 2001 and 2002 after-tax cash EPS estimates
 are established at $0.47 and $0.69, respectively. We feel the after-tax cash
 EPS estimates are more valid for valuation purposes. Our 2001 EPS estimate is
 at the low end of management guidance of $0.50 to $0.61. We are assuming
 coverage with a rating of Long-Term Attractive and a $16 target price. Our
 target price assumes a multiple of 30x cash after-tax earnings of $0.47, plus
 $2 per share of balance sheet cash that we expect the company to have in 1
 year.  Our target multiple could increase if we see demand increase."
 
     Sungard Data Systems Inc.
     (NYSE:   SDS) $51.12
     Strong Buy
 
     Andrew Jeffrey, eProcessing/ePayment
     "SunGard Data reported another excellent quarter last night, exceeding our
 $0.38 EPS estimate by $0.01 on in-line revenues and significantly better-than-
 expected margins," said Jeffrey. "We estimate that the company "buried" at
 least $0.01 in a higher-than-historical tax rate and also conservatively
 accounted for corporate overhead in the quarter.  These considerations
 materially heighten our confidence in SunGard's ability to achieve our Street-
 high 2001 EPS estimate of $1.97 and should go a long way toward alleviating
 investors' recent concerns that the year is "back-end" loaded and therefore in
 jeopardy. In light of the most recent results we are maintaining our Street-
 high 2001 and 2002 EPS estimates of $1.97 and $2.36, respectively.  We are
 modestly adjusting our revenue estimates in a fashion that should allow the
 company to continue exceeding expectations.  Our new 2001 revenue estimate is
 $1.89 billion compared with our prior $1.91 billion and 2002 is now $2.16
 billion versus our previous $2.18 billion projection. We continue to recommend
 that investors aggressively accumulate SDS shares.  The stock remains our top
 pick and our 12-month target price is $70."
 
     PC Industry Update
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Last night, IDC, a market research service, released its 1Q01 PC market
 share data report showing that worldwide unit shipments of PCs grew 2.8% YoY
 while declining 9.5% YoY in the U.S.," said Rothdeutsch. "We continue to
 believe that the longer the PC market stays weak, the wider the door opens for
 Dell to accelerate the rate at which it gains market share given the strength
 of its direct model and superior operating structure that enables it pass cost
 savings along to customers quickly, particularly given its industry-low five
 days of inventory. However, once spending resumes and IT budget lockdowns are
 lifted, we believe Compaq is better positioned within the enterprise given its
 strong server, storage, and services offerings that should drive its gross and
 operating margins higher."
 
     Unless otherwise noted, prices are as of Thursday, April 19, 2001.
 
     Robertson Stephens maintains a market in the shares of Documentum, PMC-
 Sierra, Tetra Tech, Advanced Switching Communications, Artesyn Technologies,
 AudioCodes, Clarent Corp., Commerce One, Copper Mountain Networks, Emulex, I-
 many, Inktomi, Integrated Measurement Systems, Legato Systems, Micrel, Netro
 Corp., Network Associates, Nuance Communications, Packeteer, PRI Automation,
 Travelocity.com, Zigo Corp., Atmel Corp., Multex.com, Dell Computer, Applied
 Micro Circuits Corp., JDS Uniphase, and Vitesse Semiconductor and has been a
 managing or comanaging underwriter for or has privately placed securities of
 Tetra tech, Advanced Switching Communications, Benchmark Electronics,
 AudioCodes, Clarent Corp., Cypress Semiconductor, Copper Mountain Networks,
 Emulex, I-many,  Netro Corp.,  Packeteer, PRI Automation, Multex.com, and
 Applied Micro Circuits Corp. within the past three years.
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 Stephens") is the leading full-service investment bank focused exclusively on
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 material fact respecting any company, industry or security. Although opinions
 and estimates expressed herein reflect the current judgment of Robertson
 Stephens, the information upon which such opinions and estimates are based is
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SOURCE Robertson Stephens
    SAN FRANCISCO, April 20 /PRNewswire Interactive News Release/ -- The
 following is being issued by Robertson Stephens:
 
     Rating Changes:
 
     Applied Micro Circuits Corporation
     (Nasdaq: AMCC) $28.92
     Upgrading to Buy from Long-Term Attractive
 
     F2002E EPS: $0.15, down from $0.36
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "The critical catalysts that need to be achieved in order to derive an
 overall inflection point in the current investment dynamic for components
 stocks are as follows, in our view: 1) Resolution of end-demand worries, 2)
 Resolution of inventory overhang and 3) Appropriate valuation metrics," said
 Veerappan. "We believe that we are currently able to say that resolution of
 only one of the above 3 metrics (the inventory overhang) appears to be
 underway, albeit at the early stages. Regarding end-demand, we believe that
 early data coming in from the service providers remains inconclusive as yet
 both in terms of unit demand and pricing.  This metric is the biggest and most
 important variable and therefore represents as much an opportunity as it does
 risk. Finally, on the valuation front, with so many moving parts as to when
 the bottom can be achieved (June quarter or September quarter) and at what
 level such a bottom will be arrived at, we believe that the best way to value
 companies currently is to look beyond the near-term.  This inevitably
 obfuscates things, but nevertheless, our current assumption is that leading
 companies such as AMCC can achieve their peak earnings power again (i.e. to
 mirror levels achieved in C00) somewhere between C03 and C04."
 
     Documentum, Inc.
     (Nasdaq: DCTM) $16.10
     Downgrading to Long-Term Attractive from Buy
     2001E Operating EPS: ($0.83), down from ($0.44)
     2002E Operating EPS: $0.11, down from $0.38
 
     Mark Perutz, eBusiness Infrastructure
     "While the Q1:01 revenue reported by Documentum yesterday was in-line with
 the company's pre-announcement, Operating EPS was significantly lower than
 expected," said Perutz. "Revenue was $45.3MM, a shortfall of 24% off our
 original $59.3MM estimate, and in-line with our revised estimate.  We believe
 that the revenue shortfall was due to the weak IT spending environment
 plaguing the entire software sector, and not due to a weak product offering,
 or weakness specific to the content management market.  Operating EPS was
 $(0.40), dramatically lower than our revised estimate of $(0.29), and the
 First Call consensus of $(0.18).  The surprising size of this loss was a
 combination of the revenue shortfall, and operating expenses that were not
 effectively controlled by management.  Documentum announced layoffs and a
 restructuring charge that will provide little benefit to Operating EPS for
 2001. We are maintaining our revised revenue estimates, and substantially
 reducing our estimates for Operating EPS.  Although the tight IT spending
 environment makes this a challenging time for all eBusiness software vendors,
 we feel that poor expense management has unnecessarily added the burden of
 restructuring.  While we believe in the long-term growth prospects for
 Documentum and its target market, given the additional near-term risks
 introduced by this restructuring we are reducing our rating to Long Term
 Attractive."
 
     JDS Uniphase Corporation
     (Nasdaq: JDSU) $25.90
     Upgrading to Buy from Long-Term Attractive
     F2001E EPS: $0.58, down from $0.64
     F2002E EPS: $0.37, down from $0.56
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "The critical catalysts that need to be achieved in order to derive an
 overall inflexion point in the current investment dynamic for components
 stocks are as follows, in our view: 1) Resolution of end-demand worries, 2)
 Resolution of inventory overhang and 3) Appropriate valuation metrics," said
 Veerappan. "We believe that we are currently able to say that resolution of
 only one of the above 3 metrics -- the inventory overhang -- appears to be
 underway, albeit at the early stages. Regarding end-demand, we believe that
 early data coming in from the service providers remains inconclusive as yet
 both in terms of unit demand and pricing.  This metric is the biggest and most
 important variable and therefore represents as much an opportunity as it does
 risk. Finally, on the valuation front, with so many moving parts as to when
 the bottom can be achieved (June quarter or September quarter) and at what
 level such a bottom will be arrived at, we believe that the best way to value
 companies currently is to look beyond the near-term.  This inevitably
 obfuscates things, but nevertheless, our current assumption is that leading
 companies such as JDS-Uniphase can achieve their peak earnings power again
 (i.e., to mirror levels achieved in C00) somewhere between C03 and C04. To
 that extent, we shall refrain from a group upgrade, but shall rather focus on
 the proven leaders; we are therefore upgrading JDS-Uniphase stock from a Long-
 Term Attractive rating to a Buy."
 
     PMC-Sierra, Inc.
     (Nasdaq: PMCS) $41.40
     Upgrading to Buy from Long-Term Attractive
     2001E EPS: $0.00, down from $0.25
     2002E EPS: $0.27, down from $0.55
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "PMC-Sierra reported essentially in-line results with revised estimates,"
 said Veerappan. "The guidance is for a sequential revenue decline of 10% Q-Q.
 We are upgrading PMC-Sierra stock from a Long-Term Attractive rating to a Buy.
 Our assumptions are that the end-market that PMC-Sierra participates in will
 grow between 30-50% on a secular basis, that PMC-Sierra will grow at the high-
 end of that range and that that company ought to get a premium multiple to its
 growth rate because of its attractive margin structure (75% gross margins) and
 cash generation potential. We are thus instituting a 12-month price target of
 $55 based on a 60-70x P/E multiple on expected earnings of $0.82 in EPS for
 C03 for the company.  This results in an appreciation potential of
 approximately 35% from current levels."
 
     Tetra Tech, Inc.
     (Nasdaq: TTEK) $24.34
     Downgrading to Buy from Strong Buy
     F2001E EPS: $0.97, up from $0.96
     F2002E EPS: $1.10, down from $1.12
 
     Steven Birer, eServices
     "Yesterday, Tetra Tech reported in-line results with earnings meeting
 Street expectations," said Birer. "FQ2:01 gross revenues of $234.3 million
 were $4.3 million ahead of our $230.0 million estimate and net revenues of
 $179.7 million were $4.7 million ahead of our $175.0 million estimate. On the
 bottom-line, the company reported EPS of $0.25, in-line with our estimate and
 Street expectations.  The company continues its trend of double-digit organic
 growth but experiences slower growth in wireline and wireless engineering and
 infrastructure (communications) businesses. For FY2001, we have slightly
 adjusted our model to institute a more conservative outlook for the remainder
 of the year.  Specifically, we are reducing our 2001 net revenue estimate from
 $737.1 million to $730.8 million and our EPS estimate from $1.12 to $1.10.
 Both of these changes place us at the bottom of management's guidance.
 Trading at 22.1x our FY01 EPS estimate, we believe that shares of Tetra Tech
 remain attractively valued.  We are, however, lowering our rating on Tetra
 Tech from Strong Buy to Buy based on our belief that the company's overall
 market capitalization no longer reflects a discount valuation for its wireless
 engineering unit.  As such, we do not believe that shares of Tetra Tech
 currently merit our strongest rating."
 
     Vitesse Semiconductor Corporation
     (Nasdaq: VTSS) $35.90
     Upgrading to Buy from Long-Term Attractive
 
     Arun Veerappan, Communications Components/Semiconductor Devices
     "The critical catalysts that need to be achieved in order to derive an
 overall inflexion point in the current investment dynamic for components
 stocks are as follows, in our view: 1) Resolution of end-demand worries, 2)
 Resolution of inventory overhang and 3) Appropriate valuation metrics," said
 Veerappan. "We believe that we are currently able to say that resolution of
 only one of the above 3 metrics -- the inventory overhang -- appears to be
 underway, albeit at the early stages.  Regarding end-demand, we believe that
 early data coming in from the service providers remains inconclusive as yet
 both in terms of unit demand and pricing.  This metric is the biggest and most
 important variable and therefore represents as much an opportunity as it does
 risk. Finally, on the valuation front, with so many moving parts as to when
 the bottom can be achieved (June quarter or September quarter) and at what
 level such a bottom will be arrived at, we believe that the best way to value
 companies currently is to look beyond the near-term.  This inevitably
 obfuscates things, but nevertheless, our current assumption is that leading
 companies such as Vitesse can achieve their peak earnings power again (i.e. to
 mirror levels achieved in C00) somewhere between C03 and C04. To that extent,
 we shall refrain from a group upgrade, but shall rather focus on the proven
 leaders; we are therefore upgrading Vitesse stock from a Long-Term Attractive
 rating to a Buy."
 
     Estimate Changes:
 
     Advanced Switching Communications, Inc.
     (Nasdaq: ASCX) $4.65
     Long-Term Attractive
     2001E EPS: ($0.18), down from ($0.05)
     2002E EPS: ($0.17), down from $0.15
 
     Paul Johnson, Communications/Networking
     "ASC reported results in the quarter in line with our and Street
 expectations," said Johnson.  "We are dramatically reducing revenue estimates
 due to what we believe to be the company's severe lack of visibility.  The
 March quarter was severely backend loaded.  In light of the weak carrier
 spending environment, we believe it is difficult to forecast near term
 revenues.  As a consequence, we are also cutting EPS estimates. We are
 maintaining our Long Term Attractive rating on shares of Advanced Switching
 Communications."
 
     Artesyn Technologies, Inc.
     (Nasdaq: ATSN) $14.85
     Long-Term Attractive
     2001E Cash EPS: $0.35, down from $0.50
     2002E Cash EPS: $0.95, down from $1.26
 
     J. Keith Dunne, Electronic Manufacturing Products & Services
     "Artesyn reported 1Q01 Cash EPS loss of ($0.07), $0.03 higher than our
 ($0.10) estimate and previous guidance of ($0.05-$0.10) given after the
 company's March 15 pre-announcement, on higher than expected revenues of
 $150.3MM (vs. $140.0MM est), reflecting continued end market softness," said
 Dunne.  "We are lowering 2Q01 and FY01 Cash EPS to $0.02 and $0.30-0.35 from
 $0.07 and $0.50, respectively, to reflect the continued negative impact of
 excess inventory in the channel, which could persist in 2H:FY01, order
 cancellations and pushouts, and manufacturing inefficiencies.  We are
 maintaining our LTA Rating.  ATSN is trading for 15.6x our Cal-02E cash EPS, a
 28% discount to its peer group, respectively.  While we believe that most of
 the negative news is reflected in the current price, we believe it is prudent
 to obtain more clarity into the 2H:FY revenue outlook to find a catalyst for
 significant and sustainable price appreciation."
 
     AudioCodes Ltd.
     (Nasdaq: AUDC) $8.50
     Long-Term Attractive
     F2001E EPS: $0.08, down from $0.26
     F2002E EPS: $0.23, down from $0.38
 
     Victor Lim, Communications Components/Semiconductor Devices
     "On April 19, AudioCodes reported Q1:01 results, with revenue of $13.6
 million (down 40% Q-Q) and EPS from continuing operations of $0.05 (down 73%
 Q-Q), " said Lim. "This is in-line with our estimates and at the low end of
 the company's pre-announced guidance on March 14, 2001. The company's new
 outlook for Q2:01 is for revenue of $12-14 million and EPS of $0.01 to $0.04.
 Given limited visibility, the company did not provide guidance for C01 and
 C02. Should we see (1) a continued reduction in order push-outs, (2) a
 confirmed stabilization in backlog, (3) a ramp in volume production at
 customers other than Clarent, (4) a ramp in sales in modules and media
 gateways, and (5) a decline in accounts receivables and inventory from current
 levels, we would re-evaluate our Long-term Attractive rating and our estimates
 for AudioCodes given our belief that the company remains a leading enabler of
 VoIP."
 
     Benchmark Electronics, Inc.
     (NYSE:   BHE) $27.80
     Buy
     2001E Cash EPS: $1.05, down from $1.35
     2002E Cash EPS: $1.30, down from $1.70
 
     J. Keith Dunne, Electronic Manufacturing Products & Services
     "BHE reported 1Q01 Cash EPS of $0.41, up 70% from $0.24 last year on a 24%
 sales gain," said Dunne. "1Q01 sales and EPS were in line with our recently
 lowered estimates, though the outlook has weakened. We are lowering our Cash
 EPS estimates to $1.05 from $1.35 and to $1.30 from $1.70 in FY01E/FY02E
 respectively, mostly to reflect a sharper reduction in margins on 5-7% lower
 sales. We are maintaining our rating given relatively strong cash flow and the
 ability to lower cap. exp. 50E% without impacting long-term growth. BHE is
 trading for an Enterprise Value of 7.7x Cal-01E EBITDA, a 25-30% discount to
 smaller EMS providers and half the its larger competitors."
 
     Clarent Corporation
     (Nasdaq: CLRN) $14.24
     Buy
     2001E EPS: ($0.49), down from $0.21
     2002E EPS: $0.11, down from $0.66
 
     Paul Johnson, Communications/Networking
     "Clarent reported strong results for the third quarter, with revenues in
 line with our and street expectations -- impressive, in our opinion, in light
 of the apparent carrier capital spending slowdown, while EPS was slightly
 below as the company chose to invest in its business -- primarily R&D and
 sales and marketing," said Johnson. "We are lowering our estimates for fiscal
 2001 and 2002 as Clarent weathers the weakened North American telecom capex
 environment while continuing to accelerate its investment in sales & marketing
 and R&D as it rolls out its new local, carrier and enterprise products.   For
 revenues, the specific factors leading to our decreased estimates are a lack
 of visibility to due a general telecom spending slowdown, particular weakness
 in North America, and the fact that Clarent is still in the early stages of
 deploying its softswitch product.  With respect to earnings, a combination of
 the lower revenues, continued investment in R&D and sales and marketing, and
 lower expected gross margins due to a high mix of hardware in the near term
 has caused us to reduce our estimates substantially. Clarent is rated a Buy."
 
     Commerce One, Inc.
     (Nasdaq: CMRC) $13.71
     Long-Term Attractive
     2001E EPS: ($0.23), down from ($0.18)
 
     Eric Upin, Business-to-Business eCommerce
     "Per the company's pre-release earlier this month, Commerce One
 experienced a Q1:01 shortfall -- missing our original Q1 estimate by 16% and
 our original Q1 cash EPS estimate by $0.06," said Upin. "(In March, we lowered
 our Q1 and FY01 estimates). We are making only minor adjustments to our
 recently lowered estimates. We are maintaining our Long-Term Attractive rating
 on the stock. While we continue to believe that Commerce One and SAP, in
 concert, have the potential to be one of the leading forces in B2B -- we
 believe the near-term risks associated with declining visibility, a softening
 in the company's core markets, and future quarter estimates will weigh heavily
 on the stock moving forward. With the stock up close significantly since April
 4, we believe it presents a challenging near-term risk/reward picture.
 Accordingly, we are maintaining our Long-Term Attractive rating at this time."
 
     Copper Mountain Networks, Inc.
     (Nasdaq: CMTN) $3.64
     Long-Term Attractive
     2001E EPS: ($0.84), up from ($0.98)
     2002E EPS: ($0.79), up from ($0.88)
 
     Paul Johnson, Communications/Networking
     "Copper Mountain reported in-line results for the March quarter that
 modestly exceeded our and street expectations," said Johnson. "While modestly
 increasing our earnings estimates for fiscal 2001 and 2002 as we fine tune our
 estimates by lowering our revenue and operating cost expectations, the latter
 due to some cutbacks in employee headcount.  These forecasts are based on what
 we believe to be very conservative assumptions regarding Copper Mountain's
 future growth (we have essentially taken all growth out of our assumptions),
 and while these may appear bleak, they merely reflect the lack of visibility
 the overall DSL market is experiencing.  Despite that, we remain bullish on
 the DSL industry over the long-term, expect overall visibility may start to
 improve in a few quarters, and believe our estimates are highly conservative.
 As such, any number of factors could contribute to the company performing
 better than our worst-case-scenario estimates over the next several quarters.
 Copper Mountain is rated Long Term Attractive."
 
     Cypress Semiconductor Corporation
     (NYSE:   CY) $21.55
     Long-Term Attractive
     2001E EPS: $0.27, down from $0.41
     2002E EPS: $0.29, down from $0.35
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Cypress reported 1Q01 EPS of $0.25, ahead of our and the consensus
 estimate of $0.23," said Rothdeutsch. "Revenues of $262.3 million were down
 29% QoQ, in line with our estimate and the company's most recent guidance. As
 a result of weak end market demand and the ongoing inventory correction facing
 communications markets, we are lowering our F01 EPS estimates from $0.41 to
 $0.27.  Our F02 revenue and EPS estimates are going from $957.7 million and
 $0.35 to $952 million and $0.29, respectively.  The company saw the rate of
 order cancellations in its wide-area networking business stop about 4 weeks
 ago and cancellations in its wireless infrastructure business stop around 8
 weeks ago, indicating to us that order rates are now bottoming, albeit at
 lower levels.  Still, we remain cautious on Cypress' near-term prospects
 pending better visibility into a resumption of end market demand. We are
 maintaining our LTA rating on CY."
 
     EMC Corporation
     (NYSE:   EMC) $42.81
     Long-Term Attractive
     2002E Operating EPS: $1.05, New
 
     Dane Lewis, Infrastructure: Systems & Software
     "EMC reported Q1:01 results in line with preannounced estimates," said
 Lewis. "EMC reported revenues of $2.34 billion, in line with our estimate.
 This represents a 10.5% sequential decline and 28.7% year/year growth.  EPS
 was $0.18, which was $0.01 better than our estimate and in-line with
 preannounced estimates. As EMC stated when it preannounced last week, Q1:01's
 results were affected by purchasing delays as IT managers continued to reset
 their budgets. We are fine tuning our estimates:  For Q2:01, we are slightly
 raising our revenue estimate $2.43 billion from $2.31 billion and our earnings
 estimate from $0.17 to $0.18.  For F2001, we have a revenue estimate of $
 billion and our EPS estimate from $0.97 to $0.99.  We have also introduced
 2002 revenue and EPS estimates of $13.37 billion and $1.05."
 
     Emulex Corporation
     (Nasdaq: EMLX) $30.87
     Buy
     F2001E EPS: $0.64, down from $0.78
     F2002E EPS: $0.51, down from $0.84
 
     Ara Mizrakjian, Communications/Networking
     "Emulex reported fiscal third quarter (March) revenues and profitability
 in line with the company's pre-announcement, albeit slightly below our
 estimates, and significantly below our original expectations for the quarter,"
 said Mizrakjian. "Although the company pre-announced on the morning of April
 5th, 2001, we did not reduce estimates at that time because we had lowered
 estimates for entire the group on March 30th, 2001 to reflect the continuing
 difficulty the overall storage networking market had been experiencing. In
 light of the fact that we didn't lower estimates in response to Emulex'
 preannouncement, we are lowering our estimates to reflect the performance in
 the quarter.  While our changes are dramatic, we believe the worst may be
 behind us, and that although outright recovery may not be right around the
 corner, the great variability in demand that many of the storage networking
 companies have experienced over the past several months is beginning to
 diminish, and as a result, some measure of predictability has returned to
 these businesses.  We believe Emulex holds an excellent position within a
 rapidly growing market that has suffered a large and protracted hiccough. We
 are reiterating our Buy rating on Emulex."
 
     Gateway, Inc.
     (NYSE:   GTW) $18.15
     Long-Term Attractive
     2001E EPS: $0.20, down from $0.25
     2002E EPS: $0.79, down from $1.11
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Gateway reported 1Q01 operating EPS at ($0.01), a penny lower than our
 estimates and in line with consensus," said Rothdeutsch. "We are cutting our
 F2001 revenue and EPS estimates from $9.3 billion and $0.25 to $9.0 billion
 and $0.20, respectively.  Our F2002 revenue and EPS estimates are going from
 and $10.2 billion and $1.11 to $9.7 billion and $0.79. In our view, Gateway is
 still in the clean-up stage of its recovery plan at a time when the
 environment is highly challenging even for PC companies whose operations are
 on track.  Therefore, we are maintaining our Long-Term Attractive rating on
 GTW."
 
     I-many, Inc.
     (Nasdaq: IMNY) $15.41
     Buy
     2001E EPS: $0.07, down from $0.10
     2002E EPS: $0.37, down from $0.53
 
     Michael Beckwith, Business-to-Business eCommerce
     "In a very difficult environment for enterprise software companies, I-many
 delivered solid Q1:01 results on Thursday -- exceeding our revenue estimate by
 6% and topping consensus cash EPS estimates by $0.02," said Beckwith. "Total
 revenue was $15.3 million, which represents 23% sequential and 125% yr/yr
 growth. At this time, we are making very modest adjustments to our model in-
 line with company guidance. We believe I-many represents one of the higher-
 quality and safer B2B names in the market. With its strong toehold in the
 healthcare vertical, expanded distribution via the Accenture partnership, and
 with little direct competition in complex contract management automation, we
 believe I-many is well positioned to deliver strong yr/yr returns over a
 multi-year period. As a result, we believe I-many merits increased investor
 attention and we reiterate our Buy rating at this time."
 
     Inktomi Corporation
     (Nasdaq: INKT) $7.01
     Long-Term Attractive
     F2001E Operating EPS: ($0.51), down from ($0.40)
     F2002E Operating EPS: ($0.38), New
 
     Dane Lewis, Infrastructure: Systems & Software
     "Inktomi reported FQ1:01 results in line with pre-announced estimates,"
 said Lewis. "Revenues and EPS were in line with preannounced estimates at
 $37.5 million and $(0.22).  While Inktomi is facing a difficult market
 environment, the company expects to drive growth from multiple areas:  (1)
 Streaming media delivery:  management noted strong demand for caching and
 streaming media delivery, (2) Focus on enterprise customers in both search and
 with the development of its caching appliance, and (3) Wireless initiatives.
 For FQ3:01, we are raising our revenue estimate from $36.8 million to $38.0
 million and our EPS estimate from $(0.14) to $(0.18).  For F2001, we are
 raising our revenue estimate from $187.5 million to $191.0 million and
 lowering our EPS estimate from $(0.40) to $(0.51). We are also introducing
 2002 estimates.  For F2002, we are estimating revenues of $211.6 million and
 EPS of $(0.38).  We maintain our LTA rating."
 
     Integrated Measurement Systems, Inc.
     (Nasdaq: IMSC) $13.45
     Buy
     2001E Operating EPS: $0.67, down from $0.81
     2002E Operating EPS: $0.90, New
 
     John Barr, Design Enabling Technologies
     "Integrated Measurement Systems announced 1Q01 revenue of $18.5 million
 and EPS of $0.22, above our revenue estimate of $17.7 million and just below
 our EPS estimate of $0.23," said Barr. "Excluding a foreign exchange loss of
 $160K, EPS would have been $0.04. We have decreased our 2001 revenue estimate
 from $73.7 million to $68.2 million and our EPS estimate from $0.81 to $0.67.
 We have increased our software revenue and gross margin estimates, but these
 are more than offset by a decrease in test hardware revenue and increase in
 expenses as a percentage of revenue. We have initiated 2002 estimates of $78.7
 million of revenue and $0.90 EPS. We reiterate our Buy rating on IMSC.  IMSC
 has $4.40 per share of cash with a stock price of $13.45 per share.  The
 business is valued at just $78 million or 1.0x estimated 2002 revenues. In 6-
 12 months, we believe IMSC could be valued at 20x estimated 2002 EPS of $0.90
 or $18.00 per share.  This 20 multiple is consistent with the company's
 "apples to apples" 15-20% long term growth rate and represents the potential
 for 34% upside to the current $13.45 per share price."
 
     Legato Systems, Inc.
     (Nasdaq: LGTO) $11.70
     Long Term Attractive
     2001E Operating EPS: $0.03, down from $0.06
 
     Dane Lewis, Infrastructure: Systems & Software
     "Legato reported 1Q01 earnings results, in line with our estimates," said
 Lewis. "We are fine-tuning estimates and introducing 2002 numbers:  For Q201,
 we are maintaining our revenue estimate of $66.3 million and  our EPS estimate
 of $(0.03).  For F2001, we are estimating  $277.5 million in revenues while
 lowering our EPS estimate from $0.06 to $0.03 as the company has hired ahead
 of plan. We are also introducing 2002 estimates of $355.3 million in revenues
 and EPS of $0.27.  We maintain our LTA rating."
 
     Micrel, Incorporated
     (Nasdaq: MCRL) $35.66
     Strong Buy
     2001E EPS: $0.38, down from $0.51
     2002E EPS: $0.64, down from $0.80
 
     Arun Veerappan, Communication Components/Semiconductor Devices
     Tore Svanberg, Analog & Mixed-Signal Semiconductor Devices
     "On April 19, Micrel reported March quarter revenues of $64.9 million,
 down 30% sequentially and down 4% from the same quarter a year ago," said
 Veerappan and Svanberg. "Gross margin declined 450bps and came in at 55.5%,
 47bps above our expectation. Expenses were $20.9 million, $1.1 million below
 our estimate. Resultant EPS was $0.12, two pennies above our estimate and the
 Street consensus estimate. In terms of the outlook, the company has guided for
 a 15% to 25% sequential decline in revenue for the June quarter with a 2H:01
 recovery driven by wireless and computing. Overall, we believe Micrel remains
 very well positioned to weather the current downturn with great prospects
 ahead as the company continues to focus on analog innovation, end market
 diversification and a strengthening management team."
 
     Netro Corporation
     (Nasdaq: NTRO) $5.05
     Market Performer
     2001E EPS: ($0.58), down from ($0.46)
 
     Paul Silverstein, Communications/Networking
     "Netro reported fiscal first quarter 2001 revenues slightly above the
 company's pre-announced expectations of $8.5 million," said Silverstein.
 "Netro reported revenues of $9.1 million, representing an approximately 13%
 decline year over year, and a loss of ($0.64) per share.  Reported gross
 margins were (236%).  Reported earnings and gross margins include a $23.0
 million reserve for unused inventory and other excess materials.  Excluding
 this reserve, Netro experienced a loss of ($0.15) per share and gross margins
 of 17.8%.  With or without the reserve, these results are significantly below
 our original forecasts of $16.0 million and ($0.11), respectively. Netro
 attributed the revenue shortfall this quarter to the difficult economic
 environment and slowdown in carrier spending, as well as to a disruption in
 orders from Lucent.  We are fine-tuning our fiscal 2001 estimates.  We are
 modeling little in the way of top or bottom line growth, as we believe Netro
 has no visibility as to revenues for the next several quarters given the
 significant disruption in its OEM relationship with Lucent and its
 difficulties in Europe.  While the company is trading at well below cash, with
 $357.2 million on its balance sheet and a burn rate of approximately $10
 million per quarter, we do not believe there is any upside to Netro's stock
 until the company's situation stabilizes.  We are therefore maintaining our
 Market Performer rating on the shares of Netro."
 
     Network Associates, Inc.
     (Nasdaq: NETA) $9.27
     Buy
     2001E Operating EPS: ($0.17), down from $0.17
     2002E Operating EPS: $0.32, New
 
     Dane Lewis, Infrastructure: Systems & Software
     "Network Associates beat our Q1:01 revenue estimate and slightly missed
 our EPS estimate," said Lewis. "Company's new CEO executed on several of the
 initiatives he had laid out at the beginning of the quarter including
 strengthening growth in international sales and streamlining the product line.
 We are fine-tuning our revenue estimate for FY2001, however, lowering our EPS
 estimate. We are also introducing 2002 estimates. We are fine-tuning our
 revenue estimate for FY2001 from $751 million to $750 million. We are lowering
 our EPS estimate from $0.17 to $(0.17). We expect the company to turn
 profitable and cash flow positive in 2H:01. We expect revenues of $953 million
 in revenues and $0.32 EPS for FY2002."
 
     Nortel Networks Corporation
     (NYSE:   NT) $17.80
     Buy
     2001E EPS: ($0.05), down from $0.07
     2002E EPS: $0.49, down from $0.57
 
     Paul Silverstein, Communications/Networking
     "Nortel reported first quarter revenues and EPS in-line with our
 expectations, which were revised after the company's second pre-announcement
 of the quarter on March 27th, 2001," said Silverstein. "Revenues of $6.18
 billion and a loss of ($0.12) per share compare to our $6.10 billion and
 ($0.12) forecasts, but are significantly below the company's first pre-
 announced guidance issued on February 15th, 2001. Nortel attributed the
 shortfall in revenues and earnings to the continued downturn in the U.S.
 economy and capital expenditures by U.S. carriers.  We are further
 significantly reducing our revenue forecast for each of fiscal 2001 and fiscal
 2002. We are maintaining our Buy recommendation on Nortel's shares given the
 depth and breadth of its product portfolio addressing the strongest areas of
 next-generation communications infrastructure, namely optical, wireless, and
 packet infrastructure.  We expect Nortel to benefit from the expense
 reductions it initiated in the March quarter, which should position the
 company for a strong improvement in profitability upon recovery in carrier
 capital expenditures in the U.S."
 
     Nuance Communications, Inc.
     (Nasdaq: NUAN) $15.69
     Buy
     2001E EPS: ($1.41), down from ($1.04)
     2002E EPS: ($0.64), down from ($0.05)
 
     Marianne Wolk, Wireless Data and Telecom Software
     "Nuance reported March quarter revenue and EPS of $11MM and ($0.36),
 essentially in line with our $10MM and ($0.35) estimates," said Wolk. "These
 numbers were consistent with the company's March 15th announcement of lower
 than expected revenues (previous estimates were $18MM and ($0.11)).  License
 revenues of $5.7MM were well below our $8.5MM estimate, a drop that signals
 more severe customer spending freezes then we had anticipated in our worst
 case scenario.  Service revenues held up better at $5.3MM, actually showing a
 small sequential increase.  We are reducing our estimates in the face of
 severely limited visibility to a turnaround. We expect Nuance's shares to open
 lower this morning as a result of these results. As with the company's March
 15 preannouncement, we expect the company's rich cash position to provide
 support.  Assuming a more modest burn rate following pending cost cuts ($10-
 $15mm per quarter, rather than $22mm), we project net cash should fall from
 $6.45 to $4.00 per share by the time it breaks even. Given this range, and a
 historic bottom near 1.5-2.0x cash, we believe the stock should continue to
 find support near at  $8-$10 per share."
 
     Packeteer, Inc.
     (Nasdaq: PKTR) $6.11
     Buy
     2001E EPS: ($0.07), up from ($0.19)
     2002E EPS: $0.20, up from ($0.08)
 
     Paul Johnson, Communications/Networking
     "Packeteer reported the March quarter slightly better than the March 21,
 2001 preannounced expectations, albeit below our original estimates for the
 March quarter," said Johnson. "Packeteer attributed the majority of the
 revenue shortfall this quarter to a softness in customer orders amidst the
 U.S. economic downturn and slowdown in IT capital spending.  The company
 experienced a particular softness in orders from its large corporate customers
 in the U.S. and saw a moderate slowdown in orders from Asia.  European sales
 remained on track, although the company realizes there may be upcoming
 weakness in the international markets. We are raising our revenue expectations
 for fiscal 2001 and 2002 fairly substantially.  Despite the financial
 disappointment in the March quarter, management articulated aggressive revenue
 growth in each of the next three quarters, within minimal guidance for fiscal
 2002.  Although we are impressed with management's confidence in the business,
 we are a bit concerned that the company does not have the necessary visibility
 to fully support these bold claims.  We are raising our estimates to reflect
 this higher guidance.  Packeteer is rated a Buy."
 
     PRI Automation, Inc.
     (Nasdaq: PRIA) $18.95
     Long-Term Attractive
     F2001E EPS: ($0.38), up from ($0.53)
     F2002E EPS: $0.66, up from $0.42
 
     Sue Billat, Semiconductor Equipment/Foundries
     "PRI Automation reported FQ2 loss (excluding one time charges) of $0.38
 per share, above our and consensus expectations for a loss of $0.43 per share
 due to higher than expected share count that diluted the extent of loss," said
 Billat. "To reflect the company's recent cost cutting measures, we are raising
 our EPS estimates for F2001 to a loss of $0.38 (from a loss of $0.53) on
 revenues of $348.0 million (formerly $340.9 million) and for F2002 to a profit
 of $0.66 (formerly a profit of $0.42) on revenues of $389.5 million.  At 21.3x
 our CY02 estimates, PRI is trading at a discount to many of its front-end
 peers. However, we believe PRI's manufacturing inefficiencies are driving it
 into a loss position, while we expect most of the other major equipment
 companies to stay profitable. Accordingly, we are maintaining our LTA rating
 on PRIA."
 
     Travelocity.com Inc.
     (Nasdaq: TVLY) $24.95
     Buy
     2001E EPS: $0.17, up from $0.01
     2002E EPS: $0.40, up from $0.32
 
     Lauren Cooks Levitan, Branded Internet
     "Following Travelocity's announcement of Q1 results Wednesday evening, and
 yesterday's conference call with management, we are upwardly revising our 2001
 revenue estimate to $321 million from $304.5 million, and our cash EPS
 estimate to $0.17 from $0.01," said Levitan. "We believe investors should
 react positively to Travelocity's announcement and prospects for ongoing
 revenue and earnings expansion. Despite a 77% appreciation in TVLY shares
 (versus a 19% increase in the NASDAQ) in recent weeks, the stock remains 10-
 15% below the high $20s target price implied by our discounted cash flow
 assumptions. As a result, we believe shares of Travelocity remain an
 attractive investment opportunity, particularly for longer-term oriented
 investors."
 
     Zygo Corp.
     (Nasdaq: ZIGO) $28.06
     Buy
     F2001E EPS: $0.65, up from $0.46
     F2002E EPS: $1.01, up from $0.74
 
     Sue Billat, Semiconductor Equipment/Foundries
     "Zygo's operating EPS of $0.20 exceeded our estimate of $0.13 and
 consensus of $0.14 driven by stronger than expected revenues across the board
 and higher gross margins," said Billat. "Despite the weak outlook from leading
 telecom component suppliers, Zygo's telecom division delivered 45% sequential
 growth. Bookings dropped 52% to $7.4 million but exceeded our expectations. We
 believe Zygo continues to see strong demand from its key customer and has just
 received a major order from another customer, and that Zygo's telecom products
 are used in advanced telecom systems with little exposure to the overcapacity
 that currently plagues the industry. We are raising our EPS estimates for FQ4
 to $0.23 (from $0.21) on revenues of $39.0 million (formerly $32.0 million)
 and for F2002 to $1.01 (from $0.74) on revenues of $161.0 (from $144.5
 million) to reflect better operational leverage on higher sales. At 25.5x our
 CY02 estimates, Zygo is trading at a discount to the front end semiconductor
 equipment companies average as well as the optical component manufacturing
 equipment average. Given the company's growth opportunities in the emerging
 optical component and manufacturing equipment sector, we reiterate our Buy
 rating on the stock."
 
     Comments:
 
     Atmel Corp.
     (Nasdaq: ATML) $12.47
     Buy
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Atmel reported 1Q01 EPS of $0.12, in line with both our and the consensus
 estimates," said Rothdeutsch. "Revenues of $525.9 million were down 8.6% QoQ,
 in line with our estimate and the company's revised guidance. Our revenue and
 EPS estimates remain intact. Although we are cautious on the near-term
 prospects for Atmel pending better visibility into a resumption of end-market
 demand, we remain optimistic about Atmel's long-term prospects given the
 company's strong product portfolio and low-cost manufacturing expertise which
 serve the company well, particularly when wireless end-market demand resumes.
 We are reiterating our Buy rating on ATML and 12-month price target of $16."
 
     Multex.com Inc.
     (Nasdaq: MLTX) $14.90
     Long-Term Attractive
     2001E EPS: $0.50, New
     2002E EPS: $0.87, New
 
     Justin Hughes, Brokerage and Asset Management
     "Multex reported 1Q01 EPS of $0.09, in-line with estimates," said Hughes.
 "We are establishing 2001 and 2002 EPS estimates of $0.50 and $0.87,
 respectively. More importantly, our 2001 and 2002 after-tax cash EPS estimates
 are established at $0.47 and $0.69, respectively. We feel the after-tax cash
 EPS estimates are more valid for valuation purposes. Our 2001 EPS estimate is
 at the low end of management guidance of $0.50 to $0.61. We are assuming
 coverage with a rating of Long-Term Attractive and a $16 target price. Our
 target price assumes a multiple of 30x cash after-tax earnings of $0.47, plus
 $2 per share of balance sheet cash that we expect the company to have in 1
 year.  Our target multiple could increase if we see demand increase."
 
     Sungard Data Systems Inc.
     (NYSE:   SDS) $51.12
     Strong Buy
 
     Andrew Jeffrey, eProcessing/ePayment
     "SunGard Data reported another excellent quarter last night, exceeding our
 $0.38 EPS estimate by $0.01 on in-line revenues and significantly better-than-
 expected margins," said Jeffrey. "We estimate that the company "buried" at
 least $0.01 in a higher-than-historical tax rate and also conservatively
 accounted for corporate overhead in the quarter.  These considerations
 materially heighten our confidence in SunGard's ability to achieve our Street-
 high 2001 EPS estimate of $1.97 and should go a long way toward alleviating
 investors' recent concerns that the year is "back-end" loaded and therefore in
 jeopardy. In light of the most recent results we are maintaining our Street-
 high 2001 and 2002 EPS estimates of $1.97 and $2.36, respectively.  We are
 modestly adjusting our revenue estimates in a fashion that should allow the
 company to continue exceeding expectations.  Our new 2001 revenue estimate is
 $1.89 billion compared with our prior $1.91 billion and 2002 is now $2.16
 billion versus our previous $2.18 billion projection. We continue to recommend
 that investors aggressively accumulate SDS shares.  The stock remains our top
 pick and our 12-month target price is $70."
 
     PC Industry Update
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Last night, IDC, a market research service, released its 1Q01 PC market
 share data report showing that worldwide unit shipments of PCs grew 2.8% YoY
 while declining 9.5% YoY in the U.S.," said Rothdeutsch. "We continue to
 believe that the longer the PC market stays weak, the wider the door opens for
 Dell to accelerate the rate at which it gains market share given the strength
 of its direct model and superior operating structure that enables it pass cost
 savings along to customers quickly, particularly given its industry-low five
 days of inventory. However, once spending resumes and IT budget lockdowns are
 lifted, we believe Compaq is better positioned within the enterprise given its
 strong server, storage, and services offerings that should drive its gross and
 operating margins higher."
 
     Unless otherwise noted, prices are as of Thursday, April 19, 2001.
 
     Robertson Stephens maintains a market in the shares of Documentum, PMC-
 Sierra, Tetra Tech, Advanced Switching Communications, Artesyn Technologies,
 AudioCodes, Clarent Corp., Commerce One, Copper Mountain Networks, Emulex, I-
 many, Inktomi, Integrated Measurement Systems, Legato Systems, Micrel, Netro
 Corp., Network Associates, Nuance Communications, Packeteer, PRI Automation,
 Travelocity.com, Zigo Corp., Atmel Corp., Multex.com, Dell Computer, Applied
 Micro Circuits Corp., JDS Uniphase, and Vitesse Semiconductor and has been a
 managing or comanaging underwriter for or has privately placed securities of
 Tetra tech, Advanced Switching Communications, Benchmark Electronics,
 AudioCodes, Clarent Corp., Cypress Semiconductor, Copper Mountain Networks,
 Emulex, I-many,  Netro Corp.,  Packeteer, PRI Automation, Multex.com, and
 Applied Micro Circuits Corp. within the past three years.
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 Lodging Trust Inc., Foundation Health Systems, Inc., Harrah's Entertainment,
 Inc., Hilton Hotels Corporation, The Home Depot, Inc., International Game
 Technology, Jones Apparel Group, Inc., McDonald's Corporation,  The Men's
 Wearhouse, MGM Mirage, Inc., National Semiconductor Corporation, Park Place
 Entertainment Corporation, Public Storage Inc., Scientific-Atlanta Inc.,
 Seagate Technology, Inc., Shurgard Storage Centers, Inc., Station Casinos
 Inc., The Talbots, Inc., Tommy Hilfiger Corporation and Wal-Mart Stores, Inc.
 and at any given time, Fleet Meehan Specialist may have an inventory position,
 either "long" or "short," in this security.  As a result of Fleet Meehan
 Specialist's function as a market maker, such specialist may be on the
 opposite side of orders executed on the floor of the Exchange in this
 security.
 
     Copyright (C) 2001 Robertson Stephens
 
     Robertson Stephens is a member of the National Association of Securities
 Dealers, CRD number 41271.
 
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