Robertson Stephens Daily Growth Stock Update on OSIP PPRO AFCI


                         BSYS 
                       CRNT CHH ELNT GENZ JNY MRCH OPLK 


  SAN FRANCISCO, Feb. 13 /PRNewswire/ -- The following has been issued by 
Robertson Stephens:  


      Estimate Changes: 
      OSI Pharmaceuticals, Inc. 
    (Nasdaq: OSIP) $54.63 
    Strong Buy 
    F2002E EPS: ($0.89), New 
      Michael King, Biopharmaceuticals 
    "OSI's stock has reacted negatively over the past several days to concerns 
    about upcoming data for OSI-774, an EGF receptor inhibitor, in the 
    treatment of ovarian cancer," said King.  "We view the slide as an over- 
    reaction and believe the company will present positive data for the 
    compound at the upcoming ASCO meeting in May. We believe this small 
    molecule represents a potential blockbuster compound aimed at a target 
    that may change the treatment paradigm for a number of cancers. We would 
    be buyers on the recent weakness of stock and believe OSI should be a core 
    holding for the biotech investor. We continue to expect the drug to reach 
    the market in 2004 and reiterate our Strong Buy rating." 
      PurchasePro.Com, Inc. 
    (Nasdaq: PPRO) $15.94 
    Buy 
    2001E EPS: $0.57, up from $0.47 
    2002E EPS: $1.00, New 
      Eric Upin, Business-to-Business eCommerce 
    PurchasePro delivered solid Q4 results on Monday, February 12 -- reporting 
    $33.6 million in revenue (representing 94% sequential growth) and 
    operating EPS of $0.11," said Upin. "To reflect the company's strong top- 
    line growth and earnings leverage, we are raising our estimates. Overall, 
    PurchasePro reported very solid Q4 results -- where the numbers speak for 
    themselves in terms of the magnitude of the upside and strong operating 
    leverage. However, we continue to believe the stock will be burdened over 
    the next 2-3 quarters by: the need to deepen the existing management team, 
    continued questions about the discipline of the company's financial and 
    operating controls, and the company's ability to drive growth and 
    profitability in an increasingly challenging economic environment. Even 
    though we expect the stock to receive a near-term boost based on the 
    company's strong quarterly performance, positive outlook and relative 
    valuation discount, we believe the issues highlighted above will need to 
    be addressed in order for the stock to make its next meaningful move." 
      Comments: 
      Advanced Fibre Communications, Inc. 
    (Nasdaq: AFCI) $21.44 
    Buy 
      Paul Silverstein, Communications/Networking 
    "In the wake of Advanced Fibre Communications' presentation Monday, 
    February 12, 2001 at the Robertson Stephens Technology Conference, our 
    confidence in the near- and intermediate- to long-term outlook has been 
    bolstered," said Silverstein. "We believe the underlying drivers of AFC's 
    business are intact: the current driver of additional narrowband voice 
    deployment via digital loop carriers and the future driver of DSL 
    deployment via digital loop carriers located outside the central office. 
    While we continue to lack strong near-term visibility of DSL deployment by 
    SBC in its plans to deploy AFC's Dmax plus system as one of the two key 
    so-called "neighborhood gateway" DSL provisioning vehicles under its $6 
    billion three-year "Project Pronto" DSL initiative, we believe there will 
    be meaningful DSL revenues off of AFC's digital loop carrier platforms 
    from both SBC and other AFC customers in fiscal 2001. We continue to 
    believe that AFC offers a very attractive risk-reward profile, and are 
    thus reiterating our Buy recommendation." 
        Bisys Group, Inc. (The) 
    (Nasdaq: BSYS) $50.19 
    Buy 
      Andrew Jeffrey, eProcessing/ePayment 
    "The Bisys Group announced yesterday its intention to acquire Boston 
    Institutional Group for approximately $35 million in stock," said Jeffrey. 
    "Boston Institutional Group is a provider of outsourcing services for 
    mutual funds, focusing on third-party distribution and asset gathering. We 
    believe this deal provides Bisys with a strategic opportunity to cross- 
    sell its suite of products and services to a new group of clients and 
    solidifies its position as a leader in the Investment Services market. We 
    believe Boston Institutional Group will add $25 - $30 million in annual 
    revenues and it should be neutral to FY01 earnings, turning accretive in 
    FY02. We argue that BSYS shares will continue benefiting from the 
    company's high internal growth rate, improving competitive position, 
    widening operating margin and higher projected pretax ROIC. Our 12-month 
    target price is in the low-$60s." 
      Ceragon Networks 
    (Nasdaq: CRNT) $15.13 
    Buy 
      Paul Silverstein, Communications/Networking 
    "In the wake of Ceragon Networks' presentation Monday, February 12, 2001 
    at the Robertson Stephens Technology Conference, our confidence in the 
    near- and intermediate- to long-term outlook has been bolstered," said 
    Silverstein. "We believe the March quarter is shaping up very similarly to 
    Ceragon's first and second quarters as a public company, i.e. we believe 
    there is strong upside to our financial forecasts.  There does not appear 
    to be any slowdown in deployment of Ceragon's point-to-point broadband 
    wireless solution. We note that Ceragon recently signed an OEM agreement 
    with Lucent and we believe that they are already shipping product under 
    that agreement. Given the strength in current visibility and current 
    business trends we are reiterating our Buy recommendation on the shares of 
    Ceragon Networks." 
      Choice Hotels International, Inc. 
    (NYSE: CHH) $15.00 
    Buy 
      Harry Curtis, Gaming & Lodging 
    "Choice Hotels reported 4Q:00 operating EPS of $0.28, in line with 
    consensus and our estimate," said Curtis. "For the full year 2000, 
    operating EPS increased 6.6% to $1.10 from $1.03 in 1999. Reported 4Q:00 
    EPS was $0.05, which included $19.4 million of previously announced one- 
    time charges. These expenses included restructuring at the corporate 
    office ($5.6 million), equity loss in Friendly Hotels ($10.3 million), and 
    loss on payment of the Sunburst note ($3.5 million). Total restructuring 
    charges exceeded our original estimate of $17 million, attributed to the 
    write off in Friendly. 4Q:00 revenues of $44.5 million was in-line with 
    our estimate. Revenue was driven by a 6.1% increase in royalty fee income 
    to $35.1 million. System wide RevPAR growth was 4.7%, which exceeded our 
    RevPAR expectation of 3-4% for the quarter. Across brands, Quality (6% 
    RevPAR growth), Mainstay (11.2% RevPAR growth), and Rodeway (6.0%) 
    experienced the strongest gains. As previously announced, the company 
    received $102 million in cash from the repayment of the Sunburst note. We 
    expect the company to utilize proceeds to repurchase additional shares, 
    make strategic acquisitions, and for mezzanine funding." 
      Elantec Semiconductor, Inc. 
    (Nasdaq: ELNT) $36.06 
    Buy 
      Tore Svanberg, Analog & Mixed-Signal Semiconductor Devices 
    Arun Veerappan, Communications Components/Semiconductor Devices 
    "Elantec CEO Rich Beyer, CFO Brian McDonald and VP of Corporate Strategy 
    and Business Development Mohan Maheswaran presented at the Robertson 
    Stephens Technology Conference yesterday," said Svanberg and Veerappan. 
    "The company reported that its PC related sales, including the video and 
    optical storage businesses, continue to be soft due to an overall slowdown 
    in the PC industry.  Despite this slowdown however, we believe Elantec 
    products are somewhat less susceptible to overall growth trends due to the 
    increasing industry adoption rate of optical storage devices as standalone 
    devices and within PCs.  Given the seasonality of the PC market and that 
    some of the company's end-market customers continue to readjust component 
    inventories, we believe the company's video and optical storage businesses 
    could be somewhat flat during the March quarter from December quarter 
    levels. We believe that the primary driver of the company's growth during 
    the March quarter will come from its communications business, which 
    continues to see great diversification, both in terms of customers as well 
    as geographic regions. Overall, we believe that the company continues to 
    execute well in its four main business lines, including video, optical 
    storage, communications and power management and that its impressive rate 
    of new product introductions over the last several quarters positions the 
    company as a premier pure-play analog vendor in today's semiconductor 
    markets." 
      Genzyme Corporation 
    (Nasdaq: GENZ) $82.88 
    Buy 
      Michael King, Biopharmaceuticals 
    "Oxford GlycoSciences (OGSIF $17-1/4) published a press release yesterday 
    with preliminary analysis of a six-month study for Vevesca (OGT-918) for 
    the treatment of Gaucher disease," said King. "The study was designed to 
    evaluate oral Vevesca as a replacement to Genzyme General's  Cerezyme 
    enzyme replacement therapy (ERT). In this pivotal study, thirty-six ERT 
    experienced patients (minimum of 2 years on therapy) were randomly divided 
    into three cohorts with 12 patients converting to 100mg of Vevesca three- 
    times daily, 12 patients receiving both Vevesca and ERT, and 12 patients 
    remaining on ERT. Importantly, no clinical data was provided, which Oxford 
    GlycoSciences intends to release at scientific meetings later this year. 
    While it is impossible to draw any meaningful conclusions from the press 
    release due to the lack of clinical data, we remain vigilant in analyzing 
    cheaper, competitive threats to Genzyme's Cerezyme franchise especially as 
    the drug comes off patent this year. We have been anticipating a slowing 
    of Cerezyme growth and are now forecasting sales of $570 million this 
    year. Genzyme plans to report full results on March 8th. We believe 
    revenues of $203.7 million and $753.2 million for 4Q:00 and FY2000 
    respectively should not surprise anyone, and we are looking for EPS of 
    $0.59 in 4Q:00 and $2.26 for FY2000.We are maintaining our BUY rating on 
    Genzyme." 
      Jones Apparel Group Inc. 
    (NYSE: JNY) $38.51 
    Buy 
      Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers 
    "We reiterate our Buy rating on shares of Jones Apparel Group, as we 
    believe the company maintains significant opportunities to achieve +12% 
    revenue growth and +15% earnings growth annually through (1) expanding its 
    the stable of well-known apparel, footwear, and accessory brands, (2) 
    further diversifying its distribution channels, and (3) maintaining solid 
    revenue growth in its core wholesale apparel business," said Kloppenburg. 
    "JNY shares currently trade at 13.1x our likely conservative $2.94 F2001 
    EPS estimate and 11.0x our preliminary $3.50 F2002 EPS estimate-a 
    significant discount to our projected 22% long-term earnings growth rate. 
    We believe JNY shares should appreciate to our $53 price target throughout 
    F2001, with JNY's P/E multiple expanding to 15.0x our preliminary F2002 
    EPS estimate of $3.50, as we believe the company's industry-leading growth 
    opportunities, strategic foresight, and history of consistent revenue and 
    earnings growth make JNY a compelling investment opportunity for those 
    investors seeking to rotate into industry-leading companies within the 
    consumer sector. As such, we reiterate our Buy rating and $53 price 
    target." 
      marchFIRST, Inc. 
    (Nasdaq: MRCH) $2.50 
    Buy 
    F2001E EPS: ($0.66), down from $0.20 
      Steven Birer, eServices 
    "Yesterday, marchFIRST reported Q4:00 revenues of $213.5 million, below 
    our lowered revenue estimate of $235.0 million," said Birer. "This result 
    represents a 33.7% decline over Q4:99, and a 42.3% decline compared to 
    Q3:00. We are lowering our 2001 revenue and EPS estimates from $1,200.0 
    million and $0.20, respectively, to $816.0 million and a loss per share of 
    $0.66.   We are nevertheless maintaining our Buy rating, based on an 
    attractive risk/reward outlook over the long term if, as we believe, the 
    company rights itself during 2001." 
      Oplink Communications, Inc. 
    (Nasdaq: OPLK) $12.13 
    Buy 
      Arun Veerappan, Communications Components/Semiconductor Devices 
    "Recently, Oplink announced the second phase of the expansion of its 
    state-of-the-art, China-based manufacturing capability," said Veerappan. 
    "Facilities are to be expanded in Zhuhai's Free Trade Zone, Shanghai's 
    High-Tech Zone, and a new facility will be added in Chengdu. Today Oplink 
    operates 200,000 square feet across these three facilities. Phase two 
    targets the expansion of these facilities to 800,000 total square feet by 
    the end of 2001. Oplink also operates specialty materials facilities in 
    Beijing and Fuzhou. In addition, the company's headquarters and 
    manufacturing facilities in San Jose, CA currently occupy 160,000. 
    Currently, about 38% of products come from China and 62% come from the 
    U.S.  By the end of C01, Oplink expects the ratio to be 70% from China and 
    30% from the U.S. Regarding bookings, Oplink mentioned that it had about 
    80% of the March quarter booked going into the quarter. As a result, we 
    believe Oplink will need to do about 20% turns business to meet analysts 
    revenue forecasts of $47 to $48 million (up 10% q/q). While visibility at 
    Oplink is lower than it was going into the September and December 
    quarters, we believe that our estimates are very reachable given Oplink's 
    high backlog coverage entering the March quarter, given the company's 
    historical execution capability and given its current strong market 
    position in the passive optical components market. As such, we reiterate 
    our Buy rating on Oplink shares." 
      Unless otherwise noted, prices are as of Monday, February 12, 2001. 


  Robertson Stephens maintains a market in the shares of OSI 
Pharmaceutifcals, PurchasePro.com, Advanced Fibre, The Bisys Group, Ceragon 
Networks, Elantec Semiconductor, Genzyme Corp., Oplink, and marchFIRST and has 
been managing or comanaging underwriter for or has privately placed securities 
of OSI Pharmaceutifcals, PurchasePro.com, Ceragon Networks, Elantec 
Semiconductor, Oplink, and marchFIRST within the past three years.  
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SOURCE  Robertson Stephens, Inc.  


   
(FBF OSIP PPRO AFCI BSYS CRNT CHH ELNT GENZ JNY MRCH OPLK)  
CO:  Robertson Stephens, Inc.; OSI Pharmaceuticals, Inc.; PurchasePro.Com,  


     Inc.; Advanced Fibre Communications, Inc.; Bisys Group, Inc.; Ceragon 
     Networks; Choice Hotels International, Inc.; Elantec Semiconductor, Inc.; 
     Genzyme Corporation; Jones Apparel Group Inc.; marchFIRST, Inc.; Oplink 


 Communications, Inc. 
ST:  California 
IN:  FIN 
SU:  RTG 
-0- Feb/13/2001 15:40 GMT
 
 
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