Robertson Stephens Daily Growth Stock Update on CRIO, IBEM,


  SAN FRANCISCO, Jan. 31 /PRNewswire/ -- The following is being issued by 
Robertson Stephens:  

      Ratings Changes: 
      Corio, Inc. 
    (Nasdaq: CRIO) ($3.97) 
    Downgrading to Long-Term Attractive from Buy 
    2001E EPS: ($1.55), up from ($2.03) 
      Richard Juarez, eCommerce Infrastructure Services 
    Corio reported mixed 4Q00 results yesterday, with revenue of $14.1 million 
    slightly below our estimated $14.7 million and EPS of ($0.34) that beat 
    our estimated ($0.47) by $0.13," said Juarez. "We are lowering our rating 
    on Corio's shares to Long-Term Attractive from Buy to reflect: 1) 
    execution risk in the company's shift to targeting larger enterprise 
    customers; 2) continued economic weakness, causing sales cycles for large 
    IT projects to continue to stretch out; and 3) the company's continued 
    long path to profitability in an environment of increased uncertainty." 
      iBeam Broadcasting Corporation 
    (Nasdaq: IBEM) ($3.19) 
    Downgrading to Long-Term Attractive from Buy 
    2001E EPS: ($0.56), up from ($0.90) 
      Richard Juarez, eCommerce Infrastructure Services 
    "IBeam's reported 4Q:FY00 revenue and EPS (excluding taxes, depreciation, 
    amortization, and non-cash and one-time charges) of $9.1 million and 
    ($0.22) were essentially inline with our estimates of $9.3 and ($0.23) 
    respectively," said Juarez. "We are lowering our FY01 revenue estimate 
    from $67 million to $55 million.  We are lowering our rating on the stock 
    from a Buy to a Long-Term Attractive to reflect (1) the company's lowered 
    guidance for FY01 revenue and slowing sequential revenue growth in 1Q01, 
    (2) the impact of an economic slowdown and reduction in IT spending on 
    streaming media services, e.g. Financial Services and Entertainment 
    companies, (3) increased competition and pricing pressure from other 
    players in the space, and (4) the Company's market capitalization to 2001 
    sales of approximately 8x is rich given its reduced revenue visibility and 
    continued exposure to dotcoms. Additionally, we believe the Company will 
    need to begin to raise the necessary funds to ensure their long-term 
      Lifeminders, Inc. 
    (Nasdaq: LFMN) ($3.75) 
    Downgrading to Market Performer from Buy 
    2001E EPS: Under Review, from $0.04 
      Lowell Singer, Next-Generation Internet eNablers 
    "LifeMinders reported Q4 revenues of $11.6 million, 33% below our estimate 
    of $17.2 million, and an EPS of $(0.28) well below our estimate of 
    $(0.13)," said Singer. "LifeMinders also reported 21.0 million members at 
    the end of Q4, an increase of 19.5 million from the end of Q3. LifeMinders 
    reported that the soft online advertising environment put pressure on the 
    company's pricing structure. The company reported that founder and CEO 
    Steve Chapin stepped down from his position as CEO and that board member 
    Jonathon Bulkeley will become CEO and Chairman. Given that the new CEO has 
    just assumed his role, the company was not comfortable providing revenue 
    or EPS guidance. Thus, we are placing our estimates under review until the 
    company re-examines the business, identifies its key objectives and issues 
    new guidance. We believe that LifeMinders' stock could be down given the 
    company's revenue and EPS shortfall and the current management changes. 
    In addition, it is our view that the company could continue to be impacted 
    by the softness in online marketing.  Finally, we believe that it could 
    take the new CEO some time to establish a new strategic vision for the 
    company, creating further uncertainty. It is our view that the company's 
    stock could continue to be under pressure for some time." 
      Estimate Changes: 
      Abgenix, Inc. 
    (Nasdaq: ABGX) ($45.25) 
    Strong Buy 
    2001E EPS: ($0.69), down from ($0.13) 
      Jay Silverman, Biopharmaceuticals 
    "During its fourth quarter conference call, Abgenix reiterated its 
    commitment to developing proprietary antibody products," said Silverman. 
    "Historically, biotechnology companies have created the most long-term 
    value in this way. In order to retain product rights, Abgenix is funding a 
    larger portion of development costs than previously expected to bring its 
    own antibodies through clinical trials. With access to cutting-edge target 
    discovery and antibody technologies, we believe Abgenix should generate a 
    continuous series of new antibodies for its own pipeline going forward. 
    Furthermore, Abgenix had the foresight to secure adequate antibody 
    manufacturing capacity for future clinical trial needs. We believe the 
    worldwide shortage of protein manufacturing capacity should only get worse 
    as protein products advance through clinical development and into the 
    market. Abgenix is constructing a new manufacturing facility and, earlier 
    this week, obtained the use of existing antibody manufacturing facilities 
    in a five-year agreement with Lonza Biologics. Abgenix conducted two 
    follow-on offerings in 2000 to finance the above and other needs. We are 
    adjusting our models to account for these offerings and to come in line 
    with company guidance and consensus. We are dramatically raising our 
    estimated expenses and subsequently, losses, for 2001 and beyond. However, 
    we forecast Abgenix to achieve breakthrough earnings in 2005 and 
    thereafter. In our opinion, such expenditures enable Abgenix to further 
    fund clinical development, purchase needed resources and acquire the 
    technologies needed to fulfill its goal of becoming the leader in antibody 
    therapeutics. We reiterate our Strong Buy rating." 
      Advanced Fibre Communications, Inc. 
    (Nasdaq: AFCI) ($20.56) 
    F2001E EPS: $0.66, down from $0.76 
    F2002E EPS: $0.85, New 
      Paul Silverstein, Communications/Networking 
    "Advanced Fibre reported fourth quarter revenues of $116.1 million, 
    slightly below our $118.0 million estimate, and earnings of $0.24 per 
    share, significantly ahead of our forecast of $0.16," said Silverstein. 
    "We are lowering our revenue and EPS estimates for 2001.  Lower projected 
    revenues offset higher forecasted gross margins resulting in the lowered 
    forecasted EPS for the year.  We are also initiating 2002 estimates.  We 
    believe our estimates are at the lower end. We are reiterating our Buy 
    recommendation given our view that AFC continues to offer an attractive 
    risk-reward profile of solid growth -- with potential upside -- improving 
    gross margins and operating margins, and approximately half of the 
    company's current stock price explained by cash on hand.", Inc. 
    (Nasdaq: AMZN) ($18.94) 
    Market Performer 
    F2001E EPS: ($0.95), down from ($0.72) 
    F2002E EPS: ($0.45), New 
      Lauren Cooks Levitan, Branded Internet 
    " reported Q4 revenues of $972.4 million, which were up 43.8% 
    year over year, up 52.4% sequentially, and slight ahead of preannounced 
    levels of $960 million," said Levitan. "Operating EPS loss of $(0.25) was 
    slightly ahead of our estimate of $(0.28). Amazon announced it would cut 
    1300 jobs from its corporate staff.  In addition, the company will close 
    its McDonough, Georgia distribution center, close a customer service 
    center in Seattle, Washington, and convert its Seattle, Washington 
    distribution, to a seasonal facility. As expected, Amazon set its long- 
    awaited inaugural date of operating profitability -- Q4:01. However, by 
    our estimates, in order to achieve profitability in Q4:01, Amazon's total 
    revenues would have to grow 40% year over year to approximately $1.375 
    billion, on flat to lower marketing expenses, which we view as a 
    considerable challenge. As a result, our estimates are below management 
    guidelines and our outlook for profitability is deferred one year to 
    Q4:02. Following Amazon's pre-release of disappointing Q4 results, we 
    lowered our forward-looking estimates. However, following what we would 
    characterize as a grim 2001 outlook by Amazon management, we are once 
    again lowering our estimates. We expect shares of Amazon to continue to 
    remain under pressure, with potential for increased downside risk, given 
    the substantially reduced guidance and uninspiring Q4 results." 
      Applied Materials, Inc. 
    (Nasdaq: AMAT) ($52.44) 
    Strong Buy 
    2001E EPS: $2.54, down from $2.89 
      Sue Billat, Semiconductor Equipment/Foundries 
    "After yesterday's market close, Applied Materials preannounced Q1:F01 
    (January) results negatively, lowering revenue expectations to 7-10% below 
    previous guidance of $2.9-2.95 billion," said Billat. "Our prior EPS 
    estimate was $0.78 on sales of $2.92 billion. We believe the slowdown in 
    end market drivers, including the inventory buildup in telecommunications 
    products and weakness in PC sales, contributed to cancellations and push- 
    outs by customers. Although we cut estimates on 12/16/00, we are trimming 
    estimates further based on the revised outlook. In our view, Applied is 
    particularly well-positioned in 300mm, which may provide upside to our 
    2H:F01 estimates. We believe many investors are looking past the current 
    slowdown, which appears to be relatively mild. Accordingly, we are 
    maintaining our Strong Buy rating." 
      Aware, Inc. 
    (Nasdaq: AWRE) ($20.88) 
    Long-Term Attractive 
    2001E EPS: $0.34, down from $0.53 
    2002E EPS: $0.66, New 
      Paul Johnson, Communications/Networking 
    "Aware reported fourth quarter (December) results modestly above published 
    expectations," said Johnson. "Growth in the quarter came from continued 
    strength in royalty payments and contract engagements. We are lowering our 
    estimates for fiscal 2001 to reflect management guidance for a weaker- 
    than-expected first half of the year resulting from carrier "inventory" 
    bleed down.  We expect carriers to work off the implied inventory build 
    during the first half of the year, and we expect to see revenue growth 
    resume in the back half of 2001.  Although we believe growth will trend up 
    robustly towards the back half of the year, the increase will not make up 
    for the earlier weakness. We are maintaining our Long-Term Attractive 
    rating on the stock." 
      Chiron Corporation 
    (Nasdaq: CHIR) ($43.69) 
    Long-Term Attractive 
    2001E EPS: $0.81, down from $0.91 
      Michael King, Biopharmaceutical 
    "CHIR announced 4Q:00 EPS of $0.15, beating our estimate and Street 
    consensus by a penny," said King. "Revenues were $259.6 million, up 17% 
    QoQ, beating our estimate of $229 million. Spending was higher than we had 
    expected, decreasing earnings. CHIR trades at one of the lowest multiples 
    in biotech, but we believe the multiple is justified given our low revenue 
    and earnings growth rate projections. The one wild card for 2001/2002 is 
    TFPI, but we view this Phase III program as high risk. We reiterate our 
    Long-Term Attractive rating." 
      Compucredit Corporation 
    (Nasdaq: CCRT) ($16.38) 
    Market Performer 
    2001E EPS $0.85, down from $2.60 
      Jordan Hymowitz, eCredit & Lending/I-Auto 
    Justin Hughes, Financial Services 
    "CompuCredit reported Q4 EPS of $0.24, 52% below our Street-low $0.51 per 
    share," said Hymowitz and Hughes. "Managed EPS (excluding non-cash gains) 
    were several pennies lower.  We are lowering our 2001 estimate to $0.85 
    per share (down $1.75), but have little confidence in this estimate. We 
    believe the CompuCredit model is capable of sustaining no more than 2.0- 
    2.25% ROMA.  If two-quarter lagged net charge-offs are substituted for the 
    loss provision, the company's adjusted ROMA is a dismal 60 bps.  Assuming 
    a 2.25% ROMA, CCRT's current EPS would be $0.67 annualized.  While CCRT's 
    portfolio is expected to grow 30-35% in 2001, we believe earnings from 
    incremental growth will be mostly offset by higher loss provisions.  In 
    short, we believe growth can no longer mask earnings quality 
    deterioration. We continue to rate CCRT Market Perform." 
      Illuminet Holdings, Inc. 
    (Nasdaq: ILUM) ($25.00) 
    2001E EPS: $1.14, up from $1.10 
    2002E EPS: $1.35, New 
    Marianne Wolk, Wireless Data/eCommunications 
    "Illuminet reported December quarter revenue and EPS of $40.8MM and $0.26, 
    ahead of our $40.2MM and $0.23 estimate," said Wolk. "Upside in the 
    quarter was driven by higher than expected network services revenues of 
    $39.3MM vs. our $38.3MM estimate, but was offset by lower than expected 
    clearinghouse and network usage software revenues of $1.1MM and $0.35MM 
    relative to our estimates of $1.5MM and $0.4MM, respectively.  We are 
    raising our 2001 revenue and EPS estimates to $185.7MM and $1.14, up from 
    $183.6MM and $1.10.  We believe Illuminet will continue to benefit from 
    positive trends in its Intelligent Networking and Wireless Roaming 
    business, in addition to upside potential from new products scheduled to 
    ramp in 2001 including wireless LNP and OSS mediation.  We are introducing 
    2002 estimates of $221MM and $1.35, representing 19% growth forecast for 
    both the top and bottom lines." 
      Luminent, Inc. 
    (Nasdaq: LMNE) ($7.63) 
    2001E EPS: $0.12, up from $0.09 
    2002E EPS: $0.19, up from $0.13 
      Arun Veerappan, Communications Components/Semiconductor Devices 
    "Luminent reported December quarter revenue of $45.2 million, up 25.8% 
    sequentially," said Veerappan. "Gross margin of 34.0% was up 256 bps 
    quarter-over-quarter and 296 bps better than our estimate. The company 
    guided for sequential revenue growth of 5 percent to 6 percent for the 
    March quarter. For F01, we are forecasting revenue of $211.9 million and 
    EPS of $0.12, up from $0.09.  We are also increasing our F02 EPS estimate 
    for the company from $0.13 to $0.19 on revenues of $287.1 million.  Given 
    the company's strong position in metro and access optical markets, a book- 
    to-bill above 1.0, and expected ramp of higher margin products, we 
    continue to rate the stock of Luminent as a Buy." 
      Memberworks Incorporated 
    (Nasdaq: MBRS) ($24.63) 
    F2001E EPS: ($1.58), up from ($2.80) 
    F2002E EPS: $0.57, up from $0.51 
      Andrew Jeffrey, eProcessing/ePayment 
    "MemberWorks reported 2Q01 EPS yesterday of $(0.48) on revenues of $117.6 
    million," said Jeffrey. "This compared favorably with our $(1.05) estimate 
    on revenues of $117.6 million. In light of these results, we are flowing 
    through the quarter's upside and raising our fiscal 2001 and 2002 EPS 
    estimates to $(1.58) and $0.57, from $(2.80) and $0.51, respectively. We 
    continue to recommend purchase of MBRS shares and believe the stock should 
    trade at roughly 10.0x our new calendar 2001 normalized operating cash 
    flow estimate of $55 million. This translates into a 12-month target price 
    of $36, but we argue that increased investor conviction in the company's 
    execution ability could propel the stock higher over the next year." 
      Net Perceptions, Inc. 
    (Nasdaq: NETP) ($3.56) 
    Market Performer 
    2001E EPS: ($0.88), up from ($0.97) 
      Lowell Singer, Next Generation Internet eNablers 
    "Net Perception reported Q4:00 revenues of $7.0 million, versus the 
    company's pre-announced range of $6.3-7.3 million, and below our original 
    estimate of $7.9 million," said Singer.  "The company reported EPS for the 
    quarter of $(0.39), versus the pre-announced range of $(0.36)-(0.39), also 
    well below our original estimate of $(0.29). We are maintaining our FY:01 
    revenue estimate of $40.0 million, but are raising our EPS estimate from 
    $(0.97) to $(0.88) to reflect increased cost controls. We note our 
    estimates are lower than the company's 2001 guidance of $43.0 
    million/$(0.60), reflecting our conservative stance given a lack of 
    visibility into 2001 and beyond. Given that this is Net Perceptions' 
    second consecutive quarter with revenue and earnings, we maintain our 
    Market Performer rating. Though we continue to believe that Net 
    Perceptions has developed an impressive suite of software and ASP 
    solutions, we recommend that investors now take a "wait and see" approach 
    to the company's future success." 
      Oplink Communications, Inc. 
    (Nasdaq: OPLK) ($19.88) 
    F2001E EPS: $0.05, up from $0.03 
    F2002E EPS: $0.15, up from $0.12 
      Arun Veerappan, Communications Components/Semiconductor Devices 
    "Oplink reported Q2:F01 (December) revenue of $43.2 million, 15.3% ahead 
    of our estimate for the quarter, on strong demand for its amplifier 
    products," said Veerappan. "Gross margin of 28.5% was 247 bps higher than 
    forecast, while operating expenses at 27.4% of revenue were 207 bps better 
    than our expectation of 29.5%. Strength in gross margin was driven by 
    improved manufacturing throughput, higher yields and cost benefits 
    associated with increased manufacturing in China. As a result, Oplink 
    achieved positive operating income of $0.4 million, and operating margin 
    was 1.0%, up 411 bps sequentially. Pro forma net income (excluding one- 
    time charges) was $3.1 million, and EPS was $0.02 versus $0.00 consensus 
    and our $0.01 estimate. Despite the concerns of a slowing economy and 
    limited near-term visibility that surrounds the optical components 
    industry, we believe that Oplink continues to successfully execute on its 
    business plan. Going forward, we expect Oplink to continue to see strong 
    demand in its amplifier products and expect its switching and routing 
    products to start ramping as well. As such, we believe that the company's 
    technology positioning and execution capabilities can enable the company 
    to grow at rates above that of the end-markets and therefore we continue 
    to rate Oplink stock a Buy." 
      PSI Technologies Holdings, Inc. 
    (Nasdaq: PSIT) ($10.06) 
      Sue Billat, Semiconductor Equipment/Foundries 
    "PSi reported Q4:00 EPS of $0.12, below our expectation for $0.13 and the 
    Street's $0.14," said Billat. "Revenues came in line with our expectations 
    at $18.5 million. Although the company outgrew the overall power 
    semiconductor industry over the last year, we believe weakened end market 
    segments such as wireless and PCs have impacted its revenues in Q4. Given 
    the near term uncertainty in the outlook due to weakened end market 
    drivers, we are lowering our estimates on PSi for 2001. However, we are 
    pleased to see PSi taking strategic initiatives to cut cost, and are thus 
    projecting the company to remain quite profitable through the downturn. At 
    1.2 times its book value, PSi is trading at a valuation we find attractive 
    for investors interested in participating in the growing market of power 
    semiconductor packaging. Accordingly, we are maintaining our Buy rating on 
      Quest Software, Inc. 
    (Nasdaq: QSFT) ($39.00) 
    2001E EPS: $0.29, up from $0.28 
    2002E EPS: $0.49, New 
      Dane Lewis, Infrastructure: Systems and Software 
    "Quest Software reported strong Q4:00 results, exceeding our estimates," 
    said Lewis. "The number of large deals continues to increase and Quest's 
    product positions continue to strengthen. The company repurchased 1.6 
    million shares of its stock for approximately $57 million.  Most of these 
    shares were purchased in December. While we maintain a cautious outlook 
    for our Enterprise Infrastructure companies due to our view that IT 
    spending will be reduced in the first half of 2001, Quest products provide 
    attractive ROI at a low cost and they have very good visibility.  For 
    Q4:00, we are raising our revenue and EPS estimates from $51.9 million to 
    $60.0 million and EPS from $0.05 to $0.06.  For F01, we are raising our 
    revenue estimate from $243.8 million to $260.4 million and EPS from $0.28 
    to $0.29.  We are also introducing F2002 revenue and EPS numbers of $395.5 
    million and $0.49.  We maintain our Buy rating on the shares." 
      RealNetworks, Inc. 
    (Nasdaq: RNWK) ($10.75) 
    Long-Term Attractive 
    2001E EPS: $0.09, down from $0.15 
    2002E EPS: $0.19, New 
      Lowell Singer, Next-Generation Internet eNablers 
    Sasa Zorovic, Online Media Infrastructure 
    "RealNetworks announced its Q4:00 in line with pre-announced results on 
    December 20, 2000," said Singer and Zorovic. "We are lowering our 
    revenue/EPS estimates for 2001 from $300.0 million/$0.19 to $245.2 
    milion/$0.09. We believe that the company will be reporting negative year- 
    over-year growth for the first three quarters of the year. Reasons for the 
    slowdown only deepened, visibility decreased from the company's December 
    20, 2000 quarterly update, in our view. We reiterate our LTA rating. The 
    company is currently trading at a forward P/E ratio of 56.6x; we find the 
    company's stock fully valued.", Inc. 
    (Nasdaq: SPLN) ($8.94) 
    2001E EPS: ($3.30), down from ($2.85) 
      Michael Cibula, Branded Internet 
    "SportsLine reported Q4 revenues of $22.2 million, 3% above our $21.5 
    million estimate," said Cibula.  "As a result of the combination of 
    revenues upside an tighter expense controls, SportsLine's EPS loss of 
    $(0.63) was narrower than our estimated loss of $(0.86). Management 
    provided new 2001 guidance which we believe takes into consideration the 
    continued softness in online ad spending and the recent termination of its 
    business relationship with Internet Sports Network (ISN), which ceased 
    operations on December 29th, 2000. We had estimated ISN would contribute 
    $7-8 million in mostly non-cash revenues in 2001. We are lowering our 2001 
    revenue/EPS estimates to $100M/$(3.30) from $107M/$(2.85). While we are 
    encouraged that SportsLine's stock has started to work better over the 
    past several weeks, we continue to expect near-term volatility in the 
    shares given the cloud hanging over online media companies. In our view, 
    SportsLine's stock could trade sideways until the company's domestic 
    business turns the corner to profitability and its international business 
    overcomes its self-funding issues. As a result, we continue to recommend 
    shares of SportsLine to investors with longer-term investment horizons who 
    are willing to ride out any near-term volatility in the stock." 
      Vitria Technology, Inc. 
    (Nasdaq: VITR) ($8.00) 
    Long-Term Attractive 
    2001E EPS: ($0.15), down from ($0.08) 
    2002E EPS: $0.12, New 
      Alex Baluta, Internet & eCommerce Applications 
    "Revenue for the quarter came in at $40.8 million, up 234% compared to the 
    prior year and at the high end of the company's pre released expectations, 
    but below our initial expectation of $46.7 million," said Baluta. "EPS for 
    the quarter came in at $0.00/share, above the pre-released range of 
    $(0.01)/share to $(0.03)/share but below our initial expectation of 
    $0.01/share. For FY01, we are maintaining our revenue estimate to $170.6 
    million but increasing the services revenue component. We are further 
    lowering our EPS estimate to $(0.15)/share from $(0.07)/share as the 
    company will continue to aggressively invest in R&D and Sales. For FY02 we 
    are introducing our preliminary estimates of $233.7 million in revenue and 
    $0.12/share in EPS. We continue to believe there is a substantial 
    opportunity for Vitria in process automation and integration. The company 
    is well managed and has respected products, in our view. If not for a 
    significant exposure to a single sector, results would be stronger. 
    However, while the company has some significant initiatives underway to 
    broaden its revenue contribution to more sectors, results from these 
    initiatives will take time, and will only partially make up for an 
    expected continued shortfall in Telco revenue. We believe the bad news of 
    the telco-related deceleration is priced into the stock. However, we 
    expect the stock will tread water near current levels as investors wait 
    for proof that efforts to diversify the revenue base are taking hold. We 
    are maintaining our Long-Term Attractive rating." 
      C-Bridge Internet Solutions, Inc. 
    (Nasdaq: CBIS) ($7.00) 
      Steven Birer, eServices 
    "Yesterday, C-bridge announced the appointment of Richard Putz to the post 
    of Chief Financial Officer (CFO)," said Birer. "Outgoing CFO Rick Wester 
    will resign from the company effective March 30 to pursue unspecified 
    early stage interests. In the meantime, he will assist Mr. Putz and the 
    rest of the management team with the transition. While Rick Wester's 
    resignation is unfortunate for C-bridge, we believe that Mr. Putz has the 
    expertise and experience to assume the role successfully. Mr. Putz is by 
    no means an outsider to the day-to-day operations of the company. In fact, 
    he has been integral in creating and pursuing C-bridge's business strategy 
    and pursuing a high level of operational efficiency. We also believe that 
    the two-month window for transitioning the role of CFO is ample time for 
    Mr. Putz and the rest of the company to adjust without any significant 
    disruption to operations. Accordingly, we maintain our Buy rating." 
      Closure Medical Corporation 
    (Nasdaq: CLSR) ($20.75) 
    Long-Term Attractive 
      Wade King, Medical Technologies 
    "We believe Closure will announce FDA clearance for its liquid bandage 
    product, LIQUIDERM, later this morning," said King. "We anticipate that 
    the launch of LIQUIDERM will not take place until the first quarter of 
    2002. Additionally, the company has not confirmed ASPs for the product, as 
    of yet. We do not foresee any enhancement to the company's top line or 
    bottom line expectations for 2001 in response to this news. Additionally, 
    we are not adjusting our 2002 estimates at this point, rather waiting 
    until further management guidance. Recall that we believe Closure will be 
    breakeven in Q1'01. Clearly, we believe this is a positive move for the 
    company, and is the first step for the company to return to profitability. 
    Although we believe that Closure is well on its way to becoming a standard 
    of care in external wound management, DERMABOND sell-through has been 
    lower than our expectations due to ongoing inventory questions. 
    Furthermore, estimates for Colgate sales of Soothe-N-Seal have not been 
    released. Our rating on shares of CLSR is LTA." 
      Legato Systems, Inc. 
    (Nasdaq: LGTO) ($18.06) 
    Long-Term Attractive 
      Dane Lewis, Infrastructure: Systems and Software 
    "Legato reported 4Q00 earnings results, exceeding our top line and meeting 
    our EPS estimate," said Lewis. "For Q101, we are raising our revenue 
    estimate from $54.2 million to $61.2 million while maintaining our EPS 
    estimate from $(0.03).  For F2001, we are raising our revenue estimate 
    from $248.2 million to $277.5 million and maintaining and EPS estimate of 
    $0.06.  We continue to monitor Legato's progress in rebuilding its brand, 
    improving its customer service and rolling out its new products which 
    could prove difficult in the lean IT spending environment in 1H01. We 
    maintain our LTA rating." 
      Netegrity, Inc. 
    (Nasdaq: NETE) ($64.13) 
      Dane Lewis, Infrastructure: Systems & Software 
    "Netegrity announced yesterday that it will bundle its SiteMinder 
    authorization product with i2 Technologies' TradeMatrix Platform," said 
    Lewis. The bundled solution creates a secure portal management 
    infrastructure on which to build eMarketplaces. We believe relationships 
    with vendors like i2 are key to continued revenue momentum and could 
    provide upside to our model over time. Netegrity is trading at 18.6x our 
    estimated FY2001 revenues and at a PE of 130.9x while growing earnings at 
    513%. We believe that the trend of slowing IT spending presents less risk 
    to Netegrity than other Internet infrastructure software companies because 
    Netegrity solutions are (1) critical for securing Web initiatives and (2) 
    save IT departments money in comparison to alternative solutions. We 
    believe that Web-enabling commerce applications will continue to be a top 
    priority for the Global 2000 in 2001 and this will drive the need for the 
    infrastructure to secure and manage complex eCommerce Web sites.  We 
    believe Netegrity provides a "must-own" technology for eCommerce 
    infrastructure making it a priority in IT budgets as it is central to a 
    company's business strategy. With its dominant market share (approximately 
    75%), we believe that NETE is very well positioned in the centralized Web- 
    access management market. As a result, we continue to recommend purchase 
    of the stock." 
      Smartforce Public Limited Company 
    (Nasdaq: SMTF) ($43.00) 
      Cynthia Hope Hatstadt, Knowledge Technologies 
    "Yesterday, Smartforce announced, in our view, a meaningful deal with 
    Ariba, the leading provider of B2B applications and infrastructure, where 
    Ariba becomes both a customer and a partner," said Hatstadt. "As partners, 
    the two companies plan to develop and market eBusiness courses around the 
    Ariba B2B Commerce Platform and network to educate members of the Ariba 
    ecosystem. We believe that this deal underscores Smarforce's leadership 
    position as a best-of-breed provider of complete eLearning solutions. We 
    believe this contract is valued at over $1 million and see the possibility 
    of an expanded deal over time." 
      Unless otherwise noted, prices are as of Tuesday, January 30, 2001. 

  Robertson Stephens maintains a market in the shares of Corio, iBeam, 
LifeMinders, Abgenix, Advanced Fibre Communications,, Applied 
Materials, Aware, Chiron, CompuCredit, Illuminet, Luminet, Memberworks, Net 
Perceptions, Oplink, PSI Technologies, Quest, ReatlNetworks,, 
Vitria, C-Bridge, Closure Medical, Legato Systems, Netegrity, SmartForce 
Public Limited, Ariba, and I2 Technologies  and has been managing or 
comanaging underwriter for or has privately placed securities of Corio, iBeam, 
LifeMinders, Abgenix, Illuminet, Luminet, Net Perceptions, Oplink, PSI 
Technologies, Quest, ReatlNetworks,, Vitria, C-Bridge, and 
Netegrity within the past three years.  
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The information contained herein is not a complete analysis of every 
material fact respecting any company, industry or security. Although opinions 
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Stephens, the information upon which such opinions and estimates are based is 
not necessarily updated on a regular basis; when it is, the date of the change 
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Copyright (C) 2001 Robertson Stephens  
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SOURCE  Robertson Stephens  

    -0-                             01/31/2001 
    /CONTACT:  Elizabeth Denton of Robertson Stephens, 212-407-0470/ 
    /Web site: 

CO:  Robertson Stephens; Corio, Inc.; iBeam Broadcasting Corporation;  

     Lifeminders, Inc.; Abgenix, Inc.; Advanced Fibre Communications, Inc.;, Inc.; Applied Materials, Inc.; Aware, Inc.; Chiron 
     Corporation; Compucredit Corporation; Illuminet Holdings, Inc.; Luminent, 
     Inc.; Memberworks Incorporated; Net Perceptions, Inc.; Oplink 
     Communications, Inc.; PSI Technologies Holdings, Inc.; Quest Software, 
     Inc.; RealNetworks, Inc.;, Inc.; Vitria Technology, Inc.; 
     C-Bridge Internet Solutions, Inc.; Closure Medical Corporation; Legato 

 Systems, Inc.; Netegrity, Inc.; Smartforce Public Limited Company 
ST:  California 
-0- Jan/31/2001 15:35 GMT
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