Robertson Stephens Daily Growth Stock Update on CMGI, FDC, MSFT,


                         AEIS, 
       AMKR, AMAT, AMSI, CUBE, COST, CMOS, GUC, GDT, HORC, KLAC, LRCX, 
             MAXY, NVLS, ORCL, PSIT, PRIA, RTEC, SMTL, TSM, TER, 
                    SEA, VGIN, ADBE, EBNX, MXT, MLNM, PNK 


  SAN FRANCISCO, Dec. 15 /PRNewswire/ -- The following is being issued by 
Robertson Stephens, a member of the National Association of Securities 
Dealers, CRD number 41271:  


      Rating Changes: 
      CMGI, Inc. 
    (Nasdaq: CMGI) ($9.06) 
    Downgrading to Long-Term Attractive from Buy 
    F2001E EPS: ($7.26), New 
      Lowell Singer, Internet & New Media 
    "CMGI reported revenues of $366.1MM, 3% less than revenue of $377.2MM in 
    FQ4:00," said Singer. "The company reported a loss per share of ($2.07) 
    versus EPS of ($2.17) last quarter. We believe that unfavorable public 
    markets, overall deterioration of dot-com businesses and weakness in the 
    online advertising market, which many of CMGI's companies are dependant 
    upon, could drive risk to our estimates during the next few quarters. 
    Given an overall lack of visibility and few identifiable near-term 
    catalysts, we are lowering our rating to Long-Term Attractive.  We 
    encourage investors to remain on the sidelines until we see incremental 
    evidence of CMGI's success in its new operating strategy.  Nevertheless, 
    we believe that CMGI could emerge from this uncertain environment with a 
    strong set of operating assets." 
      First Data Corporation 
    (NYSE: FDC) ($52.13) 
    Downgrading to Market Performer from Long-Term Attractive 
      Andrew Jeffrey, eProcessing/ePayments 
    "We are lowering our rating on FDC to Market Performer from Long-Term 
    Attractive," said Jeffrey. "Recent evidence of slowing consumer demand, 
    banking industry credit woes and discussions with industry participants 
    all point toward slower merchant processing revenue growth in 2001, in our 
    opinion. We believe the increasing likelihood of a economic soft landing 
    or recession makes our 2001 Street-low revenue and EPS estimates the level 
    to which other analysts will bring down their projections. As a result, it 
    is our view that FDC shares will retest their recent lows at roughly 8.0x- 
    9.0x our 2001 EBITDA estimate or $40-$45 per share." 
      Microsoft Corporation 
    (Nasdaq: MSFT) ($55.50) 
    Downgrading to Long-Term Attractive from Buy 
    F2001E EPS: $1.81, down from $1.92 
    F2002E EPS: $2.03, down from $2.14 
      Alex Baluta, Internet & eCommerce Applications 
    "Microsoft pre-releases lower-than-expected Q2 FY01 numbers, and lowers 
    expectations for the remainder of FY01," said Baluta. "We continued to 
    believe that Microsoft is well-positioned from a product perspective both 
    in FY01 and in FY02.  The company has more new product hitting the market 
    in this time period than in any other time in history. However, in our 
    opinion, the single biggest factor affecting Microsoft performance is the 
    overall macroeconomic environment.  A significant economic slowdown will 
    reduce demand appreciably.  We believe that the overhang created by the 
    current uncertain economic climate, both in Europe and in North America, 
    will limit any near-term upside in the stock.  Accordingly, we are 
    reducing our rating from a Buy to a Long-Term Attractive." 
      Estimate Changes: 
      Advanced Energy Industries, Inc. 
    (Nasdaq: AEIS) ($21.69) 
    Buy 
    2001E EPS: $1.98, down from $2.87 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting our estimates downward for the companies under our 
    coverage," said Billat. "We note that most chipmakers are reviewing their 
    2001 capital budgets, which we believe are still very much in flux as 
    visibility remains low. As a leading supplier to suppliers, we believe 
    that Advanced Energy continues to gain market share with design wins with 
    capital equipment companies, while broadening its product offerings to the 
    semiconductor capital equipment industry through synergistic acquisitions. 
    Accordingly, we are reducing our FY2001 EPS estimates for Advanced Energy 
    to $1.98 (formerly $2.87) on revenues of $400 million (formerly $500 
    million)." 
      Amkor Technology, Inc. 
    (Nasdaq: AMKR) ($15.44) 
    Buy 
    2001E EPS: $1.87, down from $2.25 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting our estimates downward for the companies under our 
    coverage," said Billat. "We note that most chipmakers are reviewing their 
    2001 capital budgets, which we believe are still very much in flux as 
    visibility remains low.  We believe Amkor, the leading packaging and test 
    house, is better poised to outperform many competitors during this period 
    of excess inventory, due to its strong position in advanced packaging as 
    well as the geographic distribution of its facilities. Accordingly, we are 
    reducing our FY2001 EPS estimates for Amkor to $1.87 (formerly $2.25) on 
    revenues of $2.6 billion (formerly $2.9 billion)." 
      Applied Materials, Inc. 
    (Nasdaq: AMAT) ($41.75) 
    Strong Buy 
    F2001E EPS: $2.89, down from $3.29 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux, as 
    visibility remains low. In our experience, Applied Materials has a track 
    record of making market share gains during downturns and achieving high 
    levels of profitability during upturns. In 2001, we expect the company to 
    continue in this vein. However, as the largest equipment vendor, Applied 
    is not immune to the general slowdown in 2001, in our view. Accordingly, 
    we are reducing our FY2001 EPS estimates for Applied Materials to $2.89 
    (formerly $3.29) on revenues of $11.46 billion (formerly $12.57 billion). 
    We are maintaining our Strong Buy rating." 
      ASM International N.V. 
    (Nasdaq: ASMI) ($11.94) 
    Buy 
    F2001E EPS: $1.87, down from $2.62 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux as 
    visibility remains low. Although we believe ASMI has gained market share 
    in the back-end segment and is also benefiting from its advanced products 
    in the front end, the delay of the Intel (INTC $35 1/8) Ireland fab could 
    have a negative effect on the company's earnings in 2001, in our view. 
    However, in the long term, we believe the adoption of 300mm in production 
    should particularly benefit the company. Accordingly, we are reducing our 
    FY2001 EPS estimates for ASMI to $1.87 (formerly $2.62) on revenues of 
    $893.3 million (formerly $1.1 billion)." 
      C-Cube Microsystems, Inc. 
    (Nasdaq: CUBE) ($17.38) 
    Buy 
    F2001E EPS: $0.43, down from $0.65 
      Arun Veerappan, Communications Components/Semiconductor Devices 
    "C-Cube Microsystems held a conference call yesterday to provide an update 
    on the current quarter (Q4:C00) and guidance for C2001," said Veerappan. 
    "For Q4, the company reaffirmed its earlier guidance of $74 million in 
    revenues and EPS of $0.15. For Q1:C01, the company guided for $61 million 
    in revenues and $0.07 in EPS. Finally, for C2001, the company is expecting 
    $321 million in revenues and $0.65 in EPS. The company's Q4:C00 
    expectations for both the top and bottom lines were in line with what we 
    were looking for. However, its revenue guidance for Q1:C01 of $61 million 
    represents a 17% Q-Q decline from our Q4:C00 projections and is $10 
    million lower than our previous $71 million revenue forecast for the 
    quarter. We are maintaining our estimates for Q4:C00, but are lowering our 
    expectations for C01 revenues and EPS to $291.5 million and $0.43, 
    respectively. While we believe that the company could potentially execute 
    to deliver on its revenue guidance for C01, we are adopting a more 
    conservative approach in our modeling in order to reflect a slower 
    economic environment for consumer products in 1H:C01 and in order to 
    provide the company with the opportunity to execute to a more reasonable 
    set of financial estimates going forward.  While we recognize that the 
    near-term business environment has slowed, we are maintaining our rating 
    on C-Cube stock due to what we view as the inherent value and positioning 
    of the company's core digital video technology." 
      Costco Wholesale Corporation 
    (Nasdaq: COST) ($34.94) 
    Long-Term Attractive 
    F2001E EPS: $1.44, down from $1.48 
    F2002E EPS: $1.64, down from $1.72 
      Bill Dreher, Broadline Retailing 
    Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers 
    "Costco reported Q1:01 EPS from continuing operations of $0.28, flat with 
    last year and in line with our estimate and the Street consensus 
    expectations," said Dreher and Kloppenburg. "While we are maintaining our 
    LTA rating, as we anticipate another two quarters of single-digit EPS 
    growth ahead of us, and daunting December comps of 18% to cycle against, 
    Costco shares will be on our radar screen for a potential upgrade." 
      Credence Systems Corporation 
    (Nasdaq: CMOS) ($22.63) 
    Buy 
    F2001E EPS: $2.15, down from $2.66 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting our estimates downward for the companies under our 
    coverage," said Billat. "We note that most chipmakers are reviewing their 
    2001 capital budgets, which we believe are still very much in flux as 
    visibility remains low. We expect Credence to continue to gain market 
    share with its strong product offerings, however, we now anticipate the 
    softness in the back end sector to continue longer than previously 
    expected. In turn this may lower the demand for testers more than we had 
    initially projected. Accordingly, we are reducing our FY2001 EPS estimates 
    for the company to $2.15 (formerly $2.66) on revenues of $711 million 
    (formerly $782.5 million)." 
      Gucci Group 
    (NYSE: GUC) ($86.75) 
    Buy 
    F2000E EPS: $3.35, up from $3.20 
    F2001E EPS: $3.50, down from $3.75 
      Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers 
    "Today, Gucci announced a better-than-expected Q3:00, as quarterly EPS 
    rose 15.8% to $1.12 versus $0.97 a year ago, well ahead of our $0.93 
    estimate," said Kloppenburg. "Upside to our estimate was driven by higher- 
    than-expected sales within the newly acquired Yves St. Laurent, Yves St. 
    Laurent Beaute, Sergio Rossi and Boucheron businesses, as well as better- 
    than-expected gross margin improvement. Shares of Gucci are currently 
    trading at 25.2x our F2001 EPS estimate of $3.78.  While this multiple is 
    somewhat ahead of what we believe is the company's 20% long-term secular 
    growth rate, it is below the company's customary trading range of the mid- 
    to high-20x.  While we believe some caution is warranted given the cool 
    Holiday 2000 sales trends season-to-date, we continue to believe that 
    Gucci remains one of the very few true international fashion leaders, and 
    that the company has proven its strong ability to revive neglected brands. 
    As such, we continue to rate the stock a Buy, and recommend purchase." 
      Guidant Corporation 
    (NYSE: GDT) ($51.13) 
    Long-Term Attractive 
    F2001E EPS: $1.86, down from $1.88 
      Wade King, Medical Technologies 
    "We are lowering our estimates for Guidant for Q4'00 and 2001, primarily 
    based upon a weakening stent pricing environment and expected heightened 
    competition," said King. "We are lowering our Q4'00 revenue estimate to 
    $666M from $673M and our associated EPS estimate to $0.42 from $0.43. For 
    2001, we are lowering our revenue estimate to $2,866M from $2,933M and our 
    associated EPS estimate to $1.86 from $1.88. While we are reducing our 
    near-term forecasts for Guidant, longer term, we believe the company 
    remains a core holding in the med-tech arena with leading products and a 
    strong product pipeline in both interventional cardiology and CRM. Our 
    rating on the shares of Guidant is LTA." 
      Horizon Health Corporation 
    (Nasdaq: HORC) ($5.25) 
    Long-Term Attractive 
    F2001E EPS: $1.04, up from $0.91 
      Sheryl Skolnick, eHealth/Health Care Services 
    "Horizon Health Corporation today reported its Q1:01 results with revenue 
    of $30.8 million declining 12.7% year over year," said Skolnick. "This was 
    to be expected as the company continues to suffer from contract losses and 
    reductions in the number of mental health site contracts due to Medicare 
    reimbursement changes that went into effect August 1, 2000. 
    Based on the overperformance in the quarter, we are updating our model and 
    now expect the company to earn $1.04 for the F2001 year.  Assuming that 
    the company completes its 1-million-share repurchase during this period, 
    this estimate could prove to be conservative by the tune of $0.03.  We 
    maintain our Long-Term Attractive rating." 
      KLA-Tencor Corporation 
    (Nasdaq: KLAC) ($29.94) 
    Buy 
    F2001E EPS: $2.07, down from $2.27 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux, as 
    visibility remains low. Although we expect the move to copper and 300 mm 
    should expand the served market for KLA Tencor, we remain concerned that 
    Applied Materials could eat into its market share. Accordingly, we are 
    reducing our FY2001 EPS estimates for KLA Tencor to $2.07 (formerly $2.27) 
    on revenues of $2.155 billion (formerly $2.247 billion)." 
      Lam Research Corporation 
    (Nasdaq: LRCX) ($15.69) 
    Strong Buy 
    F2001E EPS: $1.96, down from $2.16 
      Sue Billat, Semiconductor Equipment/Foundries 
    In light of our recently reduced 2001 capital budget growth projection, we 
    are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux, as 
    visibility remains low. As a beneficiary of the move to copper and new 
    materials, we expect Lam Research to outperform the industry but expect 
    its growth to moderate in line with the rest of the group. Accordingly, we 
    are reducing our FY2001 EPS estimates for Lam Research to $1.96 (formerly 
    $2.16) on revenues of $1853.1 million (formerly $1947.0 million). We are 
    maintaining our Strong Buy rating." 
      Maxygen, Inc. 
    (Nasdaq: MAXY) ($27.88) 
    Buy 
    F2000E EPS: ($0.42), up from ($0.49) 
    F2001E EPS: ($1.31), down from ($1.12) 
      Michael King, Biopharmaceuticals 
    "Maxygen held a conference call yesterday to discuss 2000 achievements and 
    to establish milestones and financial guidance for 2001," said King. 
    "With only two weeks left in 2000, we believe Maxygen will be hard pressed 
    to ink its remaining protein pharma deal and, therefore, we believe this 
    milestone may slip into 1Q:01. The company still expects to advance two 
    agricultural products into development by year-end for a total of eight 
    products in development. We believe Maxygen is on target to meet our 4Q:00 
    revenue forecast of $6 million; however, we now expect reduced expenses 
    and increased interest income, resulting in an increase in our EPS 
    estimate to ($0.24) from ($0.31) this quarter. Further, management 
    provided FY2001 guidance of collaborative revenues of $23 million and 
    grant revenues of $6 million. We were overly aggressive in our 2H:01 
    collaborative revenue ramp and contribution from grant revenues and have, 
    therefore, adjusted downward our 2001 revenue forecast to $30 million from 
    $33.5 million in 2001. In addition, we expect the company to increase 
    investment in R&D and SG&A, thereby decreasing our EPS estimate to ($1.31) 
    from ($1.12) in FY2001.  We continue to believe that Maxygen is the leader 
    in the revolutionary field of Molecular Evolution and will strengthen its 
    position with these goals in 2001. We reiterate our Buy rating." 
      Novellus Systems, Inc. 
    (Nasdaq: NVLS) ($30.94) 
    Strong Buy 
    F2001E EPS: $2.58, down from 3.32 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection 
    (see our First Call note on 12/14/00), we are adjusting estimates downward 
    for the companies under our coverage," said Billat. "We note that most 
    chipmakers are reviewing their 2001 capital budgets, which we believe are 
    still very much in flux, as visibility remains low. We expect Novellus 
    Systems to outperform the industry in 2001 due to its strength in copper 
    and low cost 300 mm processing. However, the delay of Intel's (INTC $35 
    1/8) Ireland fab could moderate growth in 2H:01, in our view. Accordingly, 
    we are reducing our FY2001 EPS estimates for Novellus to $2.58 (formerly 
    $3.32) on revenues of $1.629 billion (formerly $2.000 billion). We are 
    maintaining our Strong Buy rating." 
      Oracle Corporation 
    (Nasdaq: ORCL) ($27.50) 
    Long-Term Attractive 
    F2001E EPS: $0.50, up from $0.48 
      Eric Upin, Business-to-Business eCommerce 
    "Overall, Oracle reported a solid quarter as expected -- coming in line 
    with top-line expectations and a penny ahead of EPS estimates," said Upin. 
    "Specifically, total revenue of $2.66 billion (representing 15% year/year 
    growth) and database server revenue of $775 million (representing 19% 
    year/year growth) was within Street ranges, while application licenses of 
    $279 million (representing 66% year/year growth) slightly exceeded 
    expectations. The operating margin expanded substantially to 35.6% and EPS 
    was $0.11.  On the earnings conference call, management reiterated its 
    confidence in the business and positive outlook for F2001.  The company 
    emphasized that it does not expect to see signs of slowing IT spending in 
    its business given the more strategic nature of eBusiness infrastructure 
    and applications. For the February and May quarters, the company provided 
    guidance of 75% year/year growth in application licenses and 15-20% 
    year/year growth in database server revenue. Management anticipates 
    further operating margin expansion -- resulting in a blended operating 
    margin of 37%-38% for F2001. Although this was a good quarter, we maintain 
    our cautious outlook on the stock over the near-term." 
      PSI Technologies Holdings, Inc. 
    (Nasdaq: PSIT) ($9.25) 
    Buy 
    2000E EPS: $0.65, down from $0.69 
    2001E EPS: $0.78, down from $0.86 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux as 
    visibility remains low. We believe that while the weakness in wireless has 
    moderated PSI's growth, somewhat, it is offset by the strength in power 
    semiconductors, which is used in a broad range of electronic products. 
    Accordingly, we are reducing our Q4:00 EPS estimate to $0.13 (formerly 
    $0.16) on revenues of $18.5 million (formerly $20.5 million). Our FY2001 
    EPS estimates are reduced to $0.78 (formerly $0.86) on revenues of $98.4 
    million (formerly $104.2 million)." 
      PRI Automation, Inc. 
    (Nasdaq: PRIA) ($20.75) 
    Long-Term Attractive 
    F2001E EPS: $0.95, down from $1.40 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux, as 
    visibility remains low. We believe PRI Automation has made significant 
    progress in recovering from its manufacturing problems. In our view, PRIA 
    stands to be a long-term beneficiary of the increased level of automation 
    with the move to the larger 300 mm wafer size. However, the company could 
    see moderation in 2001 along with its peers in the equipment industry, we 
    believe. Accordingly, we are reducing our FY2001 EPS estimates for PRI 
    Automation to $0.95 (formerly $1.40) on revenues of $385.5 million 
    (formerly $432.5 million). We are maintaining our LTA rating on PRIA." 
      Rudolph Technologies, Inc. 
    (Nasdaq: RTEC) ($30.25) 
    Buy 
    2001E EPS: $1.23, down from $1.52 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting our estimates downward for the companies under our 
    coverage," said Billat. "We note that most chipmakers are reviewing their 
    2001 capital budgets, which we believe are still very much in flux as 
    visibility remains low. We expect copper and 300mm to drive Rudolph to 
    outperform the industry and believe the company, which we view as a 
    franchise name, should continue to benefit in copper metrology. However, 
    we anticipate that slower growth of the overall industry could dampen top- 
    line growth in 2001. Accordingly, we are reducing our FY2001 EPS estimates 
    for Rudolph Technologies to $1.23 (formerly $1.52) on revenues of $116.0 
    million (formerly $131.6 million)." 
      Semitool, Inc. 
    (Nasdaq: SMTL) ($10.88) 
    Buy 
    F2001E EPS: $1.03, down from $1.30 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux as 
    visibility remains low. We expect Semitool's growth to moderate along with 
    the industry but we believe that both copper and advanced packaging should 
    remain strong markets for the company. Accordingly, we are reducing our 
    FY2001 EPS estimates for Semitool to $1.03 (formerly $1.30) on revenues of 
    $279.4 million (formerly $302.5 million). We are maintaining our Buy 
    rating." 
      Taiwan Semiconductor Manufacturing Company Ltd. 
    (NYSE: TSM) ($18.63) 
    Buy 
    F2001E EPS: $1.08, down from $1.25 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux, as 
    visibility remains low. In our view, TSMC, as the world's largest foundry, 
    should continue to see strong demand for its advanced processing 
    capability. However, we expect growth in 2001 to moderate given the slower 
    growth that we are seeing for chip industry as a whole. Accordingly, we 
    are reducing our FY2001 EPS estimates for TSMC to $1.08 (formerly $1.25) 
    on revenues of $6.795 billion (formerly $7.882 billion). We are 
    maintaining our Buy rating." 
      Teradyne, Inc. 
    (NYSE: TER) ($34.94) 
    Long-Term Attractive 
    F2001E EPS: $2.47, down from $2.73 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux, as 
    visibility remains low. We expect the softness in demand for back-end 
    equipment to continue longer than we had previously anticipated. As such, 
    we believe Teradyne's growth to be moderated more than we had projected 
    earlier. Accordingly, we are reducing our FY2001 EPS estimates for 
    Teradyne to $2.47 (formerly $2.73) on revenues of $3.196 billion (formerly 
    $3.373 billion). We are maintaining our LTA rating." 
      Varian Semiconductor Equipment Associates, Inc. 
    (Nasdaq: VSEA) ($20.63) 
    Long-Term Attractive 
    F2001E EPS: $3.27, down from $4.07 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection, 
    we are adjusting estimates downward for the companies under our coverage," 
    said Billat. "We note that most chipmakers are reviewing their 2001 
    capital budgets, which we believe are still very much in flux as 
    visibility remains low. We expect Varian to maintain a strong position in 
    ion implantation with its single-wafer approach, which is particularly 
    appealing to chipmakers as they transition to 300mm processing. However, 
    we anticipate the company's growth to moderate along with the overall 
    industry. Accordingly, we are reducing our FY2001 EPS estimates to $3.27 
    (formerly $4.07) on revenues of $859 million (formerly $916 million)." 
      Visible Genetics Inc. 
    (Nasdaq: VGIN) ($30.81) 
    Buy 
    2001E EPS: ($1.87), down from ($1.76) 
      Michael King, Biopharmaceuticals 
    "Visible Genetics announced yesterday that the company received comments 
    from the FDA on its 510k application for the TruGene HIV-1 Genotyping 
    Assay, including a series of questions and preliminary comments on the 
    label copy," said King. "We understand there are no major issues in the 
    FDA's questions, some of which are already detailed in the submission, and 
    that no additional trials are required. While we are disappointed that VGI 
    missed its stated timeline of year-end approval of the TruGene HIV-1 assay 
    and are pushing out our approval expectation to February 2001, we believe 
    that the bad news is out on this story. Due to this two-month delay in 
    product launch, we are pushing out our domestic TruGene sales forecast to 
    $1 million from $3 million in 1Q:01. For the full year 2001, we have 
    lowered our domestic TruGene sales forecast to $16.8 million from $20.8 
    million. We are therefore lowering our total revenue forecast to $34.5 
    million from $38.5 million and our EPS to ($1.87) from ($1.76) in 2001. As 
    we are effectively pushing out our sales ramp by one quarter, we now 
    expect VGI to turn a profit in 4Q:02. We reiterate our Buy rating of 
    Visible Genetics." 
      Comments: 
      Adobe Systems Incorporated 
    (Nasdaq: ADBE) ($57.31) 
    Buy 
      Aleksandar Sasa Zorovic, Online Media Infrastructure 
    "Adobe reported its FYQ4:00 results yesterday, with revenues of 355.2 
    million and EPS of $0.34, higher than our estimates of revenues of $354.1 
    million and EPS of $0.29," said Zorovic. "Over the next year, we believe 
    the company continues to benefit from (1) increased corporate 
    communication over the Web and in print, internally and externally, and in 
    an integrated fashion; (2) corporate focus on cutting costs and increasing 
    productivity-in moving paper-based workflow processes online; (3) movement 
    to digital imaging and video. We reiterate our Buy rating on the company's 
    stock.  We maintain the company is uniquely positioned to capitalize on 
    the needs of publishers, corporations, and consumers to publish seamless 
    across media and devices-and believe this opportunity is not fully 
    reflected in the stock price." 
      eBenX Inc. 
    (Nasdaq: EBNX) ($11.38) 
    Buy 
      Sheryl Skolnick, eHealth 
    "EBNX has announced a collaboration with TALX, a provider of end-to-end 
    benefit enrollment services featuring Web and interactive voice response 
    technologies," said Skolnick. "The companies are in the process of 
    implementing their collaborative services for their first joint client and 
    expect to implement the second in early 2001.  We do not yet know the 
    exact size or revenue impact of these clients. Partnerships such as this 
    serve to improve EBNX's product and increase EBNX's visibility in the 
    mainstream market.  The company, in our view, has strong business 
    fundamentals and is a real service and technology company with real 
    customers and an attractive business model.  Currently trading below the 
    eHealth average on a market cap-to-revenue basis, these shares represent a 
    buying opportunity, in our view. We reiterate our Buy rating." 
      Metris Companies Inc. 
    (NYSE: MXT) ($25.00) 
    Buy 
      Jordan Hymowitz, eCredit & Lending/I-Auto 
    Justin Hughes, Financial Services 
    "Metris plans to report November trust static pool statistics early next 
    week," said Hymowitz and Hughes. "We believe Master Trust chargeoffs will 
    improve significantly from an unusually high 12.1% chargeoff ratio in 
    October.  We believe October's results were negatively impacted as a 
    result of large group of receivables being securitized at the end of the 
    month.  While only a pro rata share of the receivables is included in the 
    month's ratio, all of the corresponding chargeoffs are included in the 
    calculation. Metris has the most conservative accounting in the credit 
    card sector.  While this strategy minimizes the company's GAAP 
    profitability, we believe MXT's aggressive loss provisions and lack of 
    FASB 125 gains provide significant cushion to any potential increase to 
    chargeoffs. MXT has a seasoned portfolio with over 70% of their accounts 
    more than 24 months old.  This time parameter is the industry standard for 
    the length of time typically required for a new account to exhibit loss 
    performance consistent with the state of the economy rather than the 
    quality of the individual credit. Metris remains our favorite name among 
    the credit card companies.  At approximately 10x 2001 GAAP earnings, MXT 
    trades at a 22% discount to its peer group average.  We continue to rate 
    Metris Buy with a $55 target price." 
      Millennium Pharmaceuticals, Inc. 
    (Nasdaq: MLNM) ($60.13) 
    Strong Buy 
      Michael King, Biopharmaceuticals 
    "Yesterday, the Oncology Drug Advisory Committee (ODAC) recommended 
    approval of MLNM's CAMPATH for the treatment of refractory chronic 
    lymphocytic leukemia (CLL) to the FDA by a 14-to-1 vote," said King. 
    "MLNM plans to co-promote the compound with Ilex Pharmaceuticals. While 
    CAMPATH will still require final approval from the FDA, the agency 
    generally follows the recommendations of ODAC. We believe the label will 
    read that the drug is approved for CLL patients refractory to treatment 
    with alkylating agents and fludarabine, the current standards of care. 
    CAMPATH is scheduled to gain accelerated approval, meaning the FDA will 
    require confirmatory post-approval studies. The FDA, the panel, and the 
    company were unable to agree on the design of this critical study during 
    the meeting. This may delay final FDA approval by a couple of weeks into 
    early 2001 as this issue is resolved. However, we remain comfortable with 
    our estimate for 1Q:01 market launch. We estimate peak CAMPATH sales to be 
    around $150 million, and MLNM only receives 1/3 of net profits. Therefore, 
    we expect CAMPATH will have little impact on MLNM's top or bottom line. 
    Nonetheless, we view the approval as a major psychological milestone for 
    the company as CAMPATH is the Millennium's first drug approval. We still 
    believe the vast majority of MLNM's valuation lies in the breadth and 
    depth of its clinical pipeline and power of its genomics discovery engine. 
    We expect Millennium to have a slew of positive announcements into the new 
    year, including potential M&A activity and advancement of additional 
    compounds into the clinic. We reiterate our Strong Buy rating." 
      Pinnacle Entertainment, Inc. 
    (NYSE: PNK) ($15.19) 
    Market Performer 
      Harry Curtis, Gaming & Lodging 
    "Harveys Casinos/Colony Capital postponed its planned $1.2 billion 
    acquisition of Pinnacle Entertainment," said Curtis. "We believe the 
    reasons for the postponement include concerns about the credit markets 
    and, possibly more important, disappointing EBITDA trends at several of 
    Pinnacle's riverboat casinos. Harveys had initially agreed to purchase 
    shares of Pinnacle for $24 each, plus an additional $1 per share based on 
    subsequent land sales. Whether renegotiations occur will depend on several 
    issues, in our view. These include the strength of business trends at 
    Belterra (the company's recently opened Indiana casino), the issuance of 
    the fifteenth gaming license in Louisiana (for which Pinnacle is 
    considered a strong candidate), and the possibility of dockside gaming in 
    Louisiana (versus required cruising). In our view, it is very possible 
    that Pinnacle may choose to remain independent should these issues be 
    positively resolved within the next three months." 
      Industry Updates: 
      Holiday Online Shopping Study 
      Lauren Cooks Levitan, Branded Internet 
    "Despite a level of responses indicating that online shopping levels have 
    not reached our lofty expectations for the 2000 holiday season, customer 
    experiences look to be very strong," said Levitan. "Overall customer 
    satisfaction level averaged 8.40 during Week 4, a slight decrease from the 
    8.49 ranking in Week 3, but generally in line with the cumulative 8.41 
    rating over the past four weeks. Additionally, we note customer likelihood 
    to shop at a merchant's site again is averaging 8.62 throughout the 
    survey, well above last year's levels. As a result, despite some declines 
    in customer experience ratings, we believe peak online shopping 
    experiences remain satisfactory and remain comparable to last year's 
    results." 
      Semiconductor Capital Equipment Overview 
      Sue Billat, Semiconductor Equipment/Foundries 
    "In light of our recently reduced 2001 capital budget growth projection 
    (see our First Call note on 12/14/00), we are adjusting estimates downward 
    for the companies under our coverage," said Billat. "We note that most 
    chipmakers are reviewing their 2001 capital budgets, which we believe are 
    still very much in flux. We believe the semiconductor capital equipment 
    industry is likely to be flat next year, with a range of -5% to +5% 
    possible growth, depending on the timing of end-market reacceleration. 
    However, with our projection of 75% growth for 2000, we believe that even 
    if 2001 is flat to slightly down from 2000, the bulk of our companies 
    should remain quite profitable." 
        The Web Report - Volume 3, Issue #50 
    Robertson Stephens Internet analysts highlight certain industry trends and 
    company news. 
    http://www.internetstocks.com. 
      Unless otherwise noted, prices are as of Thursday, December 14, 2000. 


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SOURCE  Robertson Stephens  


    -0-                             12/15/2000 
    /CONTACT:  Elizabeth Denton of Robertson Stephens, 212-407-0470/ 
    /Web site:  http://www.rsco.com/ 


(FBF CMGI FDC MSFT AEIS AMKR AMAT AMSI CUBE COST CMOS GUC GDT HORC KLAC)  
CO:  Robertson Stephens; CMGI, Inc.; First Data Corporation; Microsoft  


     Corporation; Advanced Energy Industries, Inc.; Amkor Technology, Inc.; 
     Applied Materials, Inc.; ASM International N.V.; C-Cube Microsystems, 
     Inc.; Costco Wholesale Corporation; Credence Systems Corporation; Gucci 
     Group; Guidant Corporation; Horizon Health Corporation; KLA-Tencor 
     Corporation; Lam Research Corporation; Maxygen, Inc.; Novellus Systems, 
     Inc.; Oracle Corporation; PSI Technologies Holdings, Inc.; Rudolph 
     Technologies, Inc.; Semitool, Inc.; Taiwan Semiconductor Manufacturing 
     Company Ltd.; Teradyne, Inc.; Varian Semiconductor Equipment Associates, 
     Inc.; Visible Genetics Inc.; Adobe Systems Incorporated; eBenX Inc.; 
     Metris Companies Inc.; Millennium Pharmaceuticals, Inc.; Pinnacle 


 Entertainment, Inc. 
ST:  California 
IN:  FIN 
SU:  RTG  
-0- Dec/15/2000 16:40 GMT
 
 
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