Robertson Stephens Daily Growth Stock Update on KLAC, AFCI,


  SAN FRANCISCO, April 19 /PRNewswire/ -- The following is being issued by 
Robertson Stephens, Inc.:  

      Rating Changes: 
      KLA-Tencor Corporation 
    (Nasdaq: KLAC) $47.08 
    F2001E EPS: $1.86, up from $1.83 
    F2002E EPS: $1.26, up from $1.12 
      Sue Billat, Semiconductor Equipment/Foundries 
    "KLA posted Q3:F01 operating EPS of $0.48, beating our $0.45 estimate and 
    the Street's expectations of $0.44," said Billat. "We are raising our 
    revenue projection for FQ4 to $445 million (from $415 million) but 
    maintaining EPS of $0.27 on lower gross margin assumptions. We are also 
    raising our F02 EPS estimate to $1.26 (from $1.12) on revenues of $1.865 
    billion (from $1.745 billion). We note that KLA will begin reporting under 
    SAB 101 guidelines in Q4:F01 and that our estimates are not adjusted for 
    this. As a major participant in key technological transitions such as 
    linewidth shrinks, copper interconnect and 300 mm, we believe KLA should 
    outperform the overall industry in CY02. At 24.5x our CY02 EPS estimate, 
    KLAC is trading at a discount to large cap comparables. Accordingly, we 
    are upgrading KLAC to a Buy from a LTA rating." 
      Estimate Changes: 
      Advanced Fibre Communications, Inc. 
    (Nasdaq: AFCI) $16.59 
    F2001E EPS: $0.06, down from $0.66 
    F2002E EPS: $0.28, down from $0.85 
      Paul Silverstein, Communications/Networking 
    "AFC reported first quarter revenues of $82.2 million and a loss of 
    ($0.06) per share, significantly below our $100.0 million and $0.12 
    respective estimates," said Silverstein. "The shortfall in the quarter was 
    due almost entirely to the collapse in revenues from Winstar 
    Communications, which earlier in the week filed for Chapter 11 bankruptcy 
    protection, and the significant decline in revenues from each of Tellabs 
    and SBC. These three customers accounted for virtually the entire $18 
    million shortfall versus our $100 million forecast for the quarter.  We 
    are significantly lowering our revenue and EPS estimates for 2001 and 2002 
    given the loss in revenues from Winstar and Tellabs and the slower-than- 
    forecast roll-out of DSL off of AFC's Dmax plus and eMax plus DLC systems 
    by SBC and Verizon.  While there are obviously near-term issues, we view 
    AFC's business as fundamentally sound, with the significant prospective 
    growth driver of DSL continuing to loom on the horizon.  With $7 - 8 
    after-tax of cash on AFC's balance sheet, it would appear as if the market 
    is assigning an option value to AFC's core business. While we are 
    significantly reducing our EPS forecasts for fiscal 2001 and 2002, we 
    believe that there is upside to our estimates and that investors have 
    already priced into AFC's shares most of the above-mentioned datapoints, 
    thus dampening the downside risk on these shares.  As a result, we are 
    maintaining our Buy recommendation on AFC's shares." 
      Altera Corporation 
    (Nasdaq: ALTR) $28.63 
    Long-Term Attractive 
    F2001E EPS: $0.45, down from $0.50 
      Eric Rothdeutsch, Semiconductors/Computer Hardware 
    "Altera reported 1Q01 EPS of $0.16, in line with consensus and $0.02 above 
    our estimate," said Rothdeutsch. "Revenues of $287.4 million were down 22% 
    QoQ, above our $272.3 million estimate. As a result of a continuing 
    inventory correction and weakening demand across all end markets and 
    geographies, we are cutting our F2001 revenue and EPS estimates from $1.05 
    billion and $0.50 to $984 million and $0.45.  We are introducing our F2002 
    revenue and EPS estimates of $1.07 billion and $0.45.  We are cautious on 
    the company's prospects pending better visibility into the rate at which 
    the company burns off its excess inventory and end market demand improves. 
    Accordingly, we are maintaining our Long-Term Attractive rating on ALTR." 
      Broadcom Corporation 
    (Nasdaq: BRCM) $34.01 
    Market Performer 
    F2001E EPS: $0.00, down from $0.50 
    F2002E EPS: $0.45, down from $0.97 
      Arun Veerappan, Communications Components/Semiconductor Devices 
    "Broadcom essentially reported results in-line with its pre-announced 
    range," said Veerappan. "We believe that business at Broadcom is going 
    through a rather tough period; doubtless exacerbated by a slowing economy, 
    but also because of competitive dynamics in the company's 'edge' oriented 
    businesses. The combination of the above two factors, we believe, leads to 
    a cloudy outlook. In summary, our investment thesis is for caution in the 
    near term, followed by a gigabit Ethernet product cycle-led recovery 
    potential for Broadcom stock later in the year.  Given this view, we 
    maintain our Market Perform rating on the stock at this time." 
      Credence Systems Corporation 
    (Nasdaq: CMOS) $23.76 
    Long-Term Attractive 
    F2001E EPS: $0.00, New 
      Sue Billat, Semiconductor Equipment/Foundries 
    "Yesterday after the close, Credence lowered its guidance for FQ2 (Apr) 
    due to weak orders as well as push-outs and cancellations from its 
    existing backlog," said Billat. "As a result, the company expects FQ2 
    revenues to fall about 60% sequentially to below $50 million. We had 
    projected revenues to decline 37.5% in FQ2. In light of the near term 
    weakness, we are reducing our Q2:01 EPS estimate to a loss of $0.09 (from 
    $0.00) on revenues of $48.0 million (from $77.0 million) while maintaining 
    our FY01 EPS estimates of $0.00 on lower revenues of $265.2 million 
    (previously $332.2 million). As the back-end sector typically responds 
    quickly when a recovery occurs, we believe there may be upside to our FQ4 
    estimates.  At 1.8x book value, CMOS is trading only slightly above its 
    CY98 trough valuation. Unlike the downturn in 1998-99 when the company 
    lost $0.48 over four quarters, we expect it to lose no more than $0.27 
    over the next three quarters and breakeven for the fiscal year. 
    Accordingly we are maintaining our LTA rating." 
      Dupont Photomasks, Inc. 
    (Nasdaq: DPMI) $50.48 
    F2001E EPS: $2.29, down from $2.45 
    F2002E EPA: $2.13, down from $2.85 
      Sue Billat, Semiconductor Equipment/Foundries 
    "DuPont reported operating FQ3:01 EPS of $0.57, below our $0.60 estimate 
    due to weaker than expected gross margin as a result of lower utilization 
    of trailing edge products," said Billat. "Revenues were a record at $108.2 
    million, up 1% sequentially and in line with our expectation. We are 
    lowering our estimate for FQ4:01 to $0.52 (from $0.63) on revenues of 
    $108.0 million (formerly $114.0 million) and for F02 to $2.13 (from $2.85) 
    on revenues of $451.5 million (formerly $492.0 million). At about 21.9x 
    our CY02 numbers, the stock is trading at a premium to competitor 
    Photronics. We believe the continued acceleration of the transition to 
    finer feature sizes should drive the growth of advanced photomasks as they 
    enable the extension of current generation lithography tools to the next 
    technology node. We are concerned, however, that DPI may be losing share 
    at the trailing edge. We reiterate our Buy rating on DPMI." 
      Extreme Networks, Inc. 
    (Nasdaq: EXTR) $21.75 
    F2001E EPS: $0.10, up from $0.05 
      Paul Johnson, Communications/Networking 
    "Extreme reported slight upside to pre announced expectations, albeit 
    significantly below our estimates prior to the April 5, 2001 pre 
    announcement," said Johnson. "Extreme attributed the majority of the 
    revenue shortfall this quarter to a large number of delayed orders and 
    requests for delayed shipments very late in the quarter.  Extreme won 
    three new international customers (Telia, TelestraSaturn and Wind) in the 
    quarter -- yielding a more positive outlook on the company's international 
    business. We are raising our estimates for 2001 and 2002 as a result of 
    modest upside in the quarter and slightly better demand visibility.  We 
    are raising our gross margin expectations due to the new products that are 
    expected to begin shipping in the next several quarters.  Additionally, 
    the company plans to receive a tax benefit for the next quarter as it 
    returns to profitability. Although gigabit Ethernet's graduation to the 
    world of large carriers has begun to yield larger contracts for Extreme to 
    bid upon, sell cycles have also grown longer.  Since the majority of real 
    competition in carrier class gigabit Ethernet is still in developmental 
    stage, we believe Extreme is well positioned to weather the economic 
    downturn that we have entered into -- reaping the benefits that may 
    follow.  As a result, we are reiterating our Buy recommendation on Extreme 
      Hi/fn, Inc. 
    (Nasdaq: HIFN) $15.27 
    Long-Term Attractive 
    F2001E EPS: $0.29, down from $1.01 
    F2002E EPS: ($0.07), down from $1.27 
      Arun Veerappan, Communications Components/Semiconductor Devices 
    "Hi/fn reported Q2:F01 (March) results with revenue of $13.8 million, 
    gross margin of 76.3%, operating margin of 16.8%, and EPS from continuing 
    operations of $0.18," said Veerappan. "Q2:F01 revenue of $13.8 million was 
    down 14% quarter-over-quarter due to a decline in sales in the company's 
    networking (down 5% Q-Q) and storage (down 33% Q-Q) businesses. 
    Compression and classification software sales were up 39% Q-Q, helping to 
    offset the weakness in the company's networking business. It is important 
    to note that Q2's total revenue of $13.8 million was in-line with the 
    company's Q1:F01 (December) guidance. Given the continued difficult 
    business environment, we are reducing our Q3:F01, F01, and F02, revenue 
    and EPS estimates. While the current downturn in the communications 
    markets has impacted Hi/fn's near-term outlook (down 40% Q-Q in June), we 
    believe that the company has made progress with regard to its transition 
    to higher data rate security processors capable of performing compression, 
    encryption, and authentication on a single chip. Reportedly, the company 
    has garnered design wins at OC-3 data rates. We believe that converting 
    recent design wins into production revenue and delivering on products such 
    as the 8154 OC-48 security processor will be important milestones for 
    investors to track." 
      Immunex Corporation 
    (Nasdaq: IMNX) $16.80 
    2001E EPS: $0.28, up from $0.26 
      Michael King, Biopharmaceuticals 
    "IMNX reported 1Q:01 EPS of $0.07, beating our estimate and Street 
    consensus of $0.06," said King. "Enbrel sales were $164.9 million, quite a 
    bit below our estimate of $192 million. Total revenue was $218 million, 
    below our $245 million estimate. Gross margins of 72% beat our 71% 
    estimate. We are lowering our Enbrel sales estimate for 2001 from $760 
    million to $746 million. However, our estimate for the remaining three 
    quarters have actually increased based on our estimate that the company 
    will make up the first quarter miss. Our 2001E EPS increases from $0.26 to 
    $0.28 due to increased Enbrel estimates in addition to decreased R&D and a 
    slightly decreased share count. While the Enbrel number was a little low 
    this quarter, we do not believe this reflects underlying demand. We 
    believe patient interest remains high. Catalysts for the stock include an 
    SBLA filing for psoriatic arthritis, manufacturing milestones, and Phase 
    II psoriasis data. We would be buyers of the stock on any weakness in 
    trading and reiterate our Buy rating." 
      Internet Security Systems, Inc. 
    (Nasdaq: ISSX) $39.53 
    Long-Term Attractive 
    2002E EPS: $0.94, New 
      Dane Lewis, Infrastructure: Systems & Software 
    "Internet Security Systems' Q1:01 revenues and EPS were slightly below our 
    expectations," said Lewis. "ISS' managed services business showed growth 
    in Q1:01; however, license and product sales declined sequentially driven 
    by order delays and reductions as a result of the weak economic 
    environment. We are fine-tuning our 2001 revenue estimate from $286 
    million to $285 million and maintaining our EPS estimate at $0.67. We 
    expect 2002 revenues of $409 million and EPS of $0.88. ISS is trading at 
    6.2x our estimated 2001 revenues and 4.3x estimated 2002 revenues. In 
    addition, ISS is trading at a 59x PE for 2001 and a 42x PE for 2002. We 
    believe that the company faces a solid opportunity in its core markets of 
    intrusion detection and scanning, and a strong emerging opportunity in 
    managed security services market. However, in this weak economic 
    environment, we believe that customers could continue to delay and reduce 
    orders. We maintain our Long-Term Attractive rating." 
      i2 Technologies, Inc. 
    (Nasdaq: ITWO) $19.97 
    F2001E EPS: ($0.08), down from $0.20 
    F2002E EPS: $0.23, down from $0.37 
      Eric Upin, Business-to-Business eCommerce 
    "As expected in the wake of the company's pre-release earlier this month, 
    i2a delivered mixed Q1 results on Wednesday, April 18," said Upin. "In 
    essence, the company met our Q1:01 revenue forecast, coming within 2% of 
    our original estimate - testament to i2's very competitive position in one 
    of the higher priority application areas in this difficult economic 
    environment. Total revenue was $357 million, of which $211 million was 
    license revenue. With i2 continuing to hire aggressively throughout the 
    quarter, the company missed our original cash EPS estimate by $0.04 -- 
    reporting $0.02 in cash EPS. Even more significant than i2's modest Q1 
    shortfall was its very cautious outlook for the remainder of the year -- 
    where the company's pipeline, visibility, and growth prospects are much 
    more limited than just a quarter ago. We are lowering estimates for a 
    third time in a little over a month. While we believe our estimates are 
    reasonable given the current environment for enterprise software sales and 
    i2's current cost structure, if the current downturn in the economy 
    worsens or is more protracted than expected, additional downward revisions 
    may be in order. For those investors with a long-term horizon (1-2 years), 
    we believe i2 represents one of the select few business software companies 
    with a realistic opportunity to become a $3-4 billion top-line company 
    with 20% plus operating margins over the next several years." 
      Linear Technology Corporation 
    (Nasdaq: LLTC) $44.50 
    Long-Term Attractive 
    F2001E EPS: $1.28, down from $1.32 
    F2002E EPS: $1.05, down from $1.34 
      Tore Svanberg, Analog & Mixed-Signal Semiconductor Devices 
    "Linear reported March quarter results on Tuesday, April 17," said 
    Svanberg. "Revenue grew 9.1% sequentially to $282.0 million, $8.0 million 
    better than our estimate. Gross margin expanded 54bps sequentially to 
    76.9%.  Expenses were $54.0 million, $1.2 million below our expectations. 
    As a result, EPS came in it at $0.38, three pennies better than our 
    estimate and two pennies above Street consensus estimate. In terms of the 
    outlook, Linear indicated that it has seen a dramatic decline in bookings 
    and an increase in cancellations across all business segments.  In 
    particular, the company observed a pronounced slowdown geographically in 
    North America and specifically in the networking space.  We believe that 
    Linear's customers face high inventory levels and weak end market demand. 
    As such, Linear has guided for a 20% to 30% sequential decline in revenue 
    and earnings for Q4:F01 noting that visibility is at an all time low for 
    the company." 
      Newport Corporation 
    (Nasdaq: NEWP) $38.17 
    F2001E EPS: $1.36, down from $1.45 
    F2002E EPS: $1.48, down from $2.00 
      Sue Billat, Semiconductor Equipment/Foundries 
    "Newport's operating EPS of $0.40, exceeded our and consensus estimates of 
    $0.36 due to higher revenues from the fiberoptic segment and expense 
    control," said Billat. "Given the recently lowered outlook from leading 
    component suppliers, and the weakness in the semiconductor capital 
    equipment sector, we are not surprised by the steep 43% decline in 
    Newport's fiberoptic segment bookings, which fell to $89.7 million from 
    $128.9 million in Q4. To reflect the weakness in the fiberoptic and 
    semiconductor equipment businesses, we are reducing our EPS estimates for 
    2001 to $1.36 (from $1.45) on revenues of $370.7 million (formerly $400.0 
    million) and for 2002 to $1.48 (from $2.00) on revenues of $390.0 (from 
    $580.0 million). We believe that the company's move to a new manufacturing 
    facility is likely to improve operational efficiency and help gross 
    margins stay in the mid-40s despite the steep drop in Q2 and Q3 revenues. 
    At 25.8x our CY02 estimates, NEWP is trading at a discount to companies 
    not only the optical equipment sector but in the semiconductor equipment 
    category as well. Given the company's growth opportunities in the emerging 
    optical component equipment sector, we find the stock a compelling buy." 
      Pinnacle Entertainment, Inc. 
    (NYSE: PNK) $9.34 
    Market Performer 
    2001E EPS: $0.45, down from $0.58 
    2002E EPS: $0.60, down from $0.68 
      Harry Curtis, Gaming & Lodging 
    "On April 10, we raised our 2001 EPS estimates for Pinnacle Entertainment 
    to $0.58 from $0.50 based primarily on improving trends at the Belterra 
    casino (Indiana) and positive legislative events in Louisiana," said 
    Curtis. "While we believe these trends remain in tact, the company's 
    Bossier, Biloxi and Reno casinos appear to be under greater pressure than 
    we had anticipated. We are reducing our 1Q:01 EPS estimate to $(0.08) from 
    $0.01, which is in line with the company's second round of EPS guidance. 
    For the year, our EPS estimate declines to $0.45. Our 2001 EBITDA estimate 
    declines to $108 million from $113 million. For 2002, our EPS estimate 
    declines to $0.60 from $0.68. We maintain our Market Performer rating on 
    shares of Pinnacle." 
      Sanmina Corporation 
    (Nasdaq: SANM) $27.33 
    F2001E EPS: $1.10 down from $1.20 
    F2002E EPS: $1.20, down from $1.40 
      J. Keith Dunne, Electronic Manufacturing Products & Services 
    "Sanmina reported 2Q01 Cash EPS of $0.32, 79% above $0.20 last year, equal 
    to our original estimate, and $0.03 above our recently reduced estimates 
    due to higher operating margins," said Dunne. "However, due to a sharper 
    falloff in demand, we are further reducing our FY01E cash EPS toward the 
    lower end of our $1.10-$1.20 range. Similarly, we are reducing FY02E Cash 
    EPS. We are maintaining our Buy rating, though the stock may be a little 
    ahead of itself given consensus FY01E Cash EPS was $1.35. Sanmina is 
    trading for 21x our Cal-02E Cash EPS, a slight premium to large cap EMS 
    peers, despite greater exposure to more cyclical, capital intensive PWB 
    markets.  Conversely, our estimates exclude the impact of acquisitions, 
    which could be funded from positive cash flow and $1.3 billion of cash." 
      Siebel Systems, Inc. 
    (Nasdaq: SEBL) $33.98 
    F2001E EPS: $0.58, down from $0.69 
    F2002E EPS: $0.70, down from $1.03 
      Eric Upin, Business-to-Business eCommerce 
    "Siebel reported a solid quarter-beating our estimates and delivering on 
    the company's guidance, a substantial accomplishment for a company of this 
    size in a tough market," said Upin. "However, Siebel management provided 
    downward guidance based on the extremely challenging business climate and 
    slowing demand for software. We are lowering June quarter numbers based on 
    Siebel's downward guidance, lack of visibility into pipeline conversion 
    rates, and risks associated with global economic conditions.  We are also 
    lowering our 2001 and 2002 estimates-recognizing that further downward 
    revisions are possible if we experience a protracted economic downturn. 
    Although we have entered an increasingly challenging environment for 
    software, we believe that Siebel will continue to be the dominant 
    franchise in the CRM space longer term. However, we would not be 
    aggressive buyers of the stock at this time-based on current valuation 
    levels, which are not yet compelling, and additional downside risk to the 
      Tellabs, Inc. 
    (Nasdaq: TLAB) $35.54 
    Long-Term Attractive 
    2001E EPS: $1.40, down from $1.45 
    2002E EPS: $1.77, down from $2.01 
      Paul Silverstein, Communications/Networking 
    "Tellabs reported revenues and EPS in-line with our expectations for the 
    March quarter, which were revised after the company's second pre- 
    announcement of the quarter on April 6, 2001," said Silverstein. 
    "Revenues of $772.0 million and EPS of $0.29 compare to our $772.0 million 
    and $0.29 forecasts, but are significantly below the company's first pre- 
    announced guidance issued on March 7, 2001 of revenues of $830.0 to $865.0 
    million and EPS of $0.35 to $0.38 and Tellabs's original forecast of 
    revenues of $865.0 to $890.0 million and EPS of $0.39.  We are further 
    lowering our fiscal 2001 and fiscal 2002 revenue and EPS estimates given 
    the deterioration in business conditions.  We maintain our LTA 
    recommendation regarding the company's shares given our belief that the 
    company remains well positioned with its TITAN product line." 
      Teradyne, Inc. 
    (NYSE: TER) $35.00 
    Long-Term Attractive 
    F2001E EPS: $0.43, down from $1.16 
    F2002E EPS: $0.70, down from $1.88 
      Sue Billat, Semiconductor Equipment/Foundries 
    "Despite reporting revenues in line with our revenue estimates, Teradyne 
    reported Q1:01 EPS of $0.33 that exceeded our estimate by a penny due to 
    slightly lower operating expenses," said Billat. "Orders fell steeply, as 
    expected, by 45% sequentially to $357.1 million from $651.6 million in Q4 
    due to weakness in semiconductor test as well as softening outlook of the 
    connection systems business. Going forward, we anticipate the steep 
    decline in Q2 sales to drive down gross margins by about 750bp, as non- 
    semiconductor test, which is labor intensive, becomes a higher portion of 
    revenues. Accordingly, we are reducing our EPS estimates for Q2 to $0.00 
    from $0.25 on revenues of $435.0 million (formerly $550.0 million) and for 
    2001 to $0.43 from $1.16 on revenues of $1.95 billion (formerly $2.32 
    billion). We are also publishing 2002 EPS estimate of $0.70 on revenues of 
    $2.15 billion. We are maintaining our Long-Term Attractive rating on TER." 
      Transwitch Corporation 
    (Nasdaq: TXCC) $16.39 
    2001E EPS: $0.27, up from $0.23 
    2002E EPS: $0.34, up from $0.30 
      Paul Johnson, Communication/Networking 
    "Transwitch reported their March quarter in line with pre-announced 
    expectations from March 26, 2001, albeit significantly below both the 
    company's first pre-announcement (March 8, 2001) and our original 
    expectations for the quarter," said Johnson. "TranSwitch attributed the 
    majority of the revenue shortfall this quarter to weakness in the 
    telecommunications systems market in North America with cancellations and 
    push-outs of orders from contract manufacturers and OEM customers -- 
    especially during the month of March.  Although management commented that 
    business in Asia and Europe remains strong, we believe that visibility in 
    these areas is also much lower than originally thought.  On a positive 
    note, management also commented that the company continues to see strong 
    design-win momentum and that the new product releases are on schedule. We 
    rate TranSwitch a Buy." Inc. 
    (Nasdaq: TVLY) $24.08 
    2001E EPS: $0.08, up from $0.01 
    2002E EPS: $0.31, down from $0.32 
      Lauren Cooks Levitan, Branded Internet 
    "Even against a seemingly tough economic environment, Travelocity reported 
    Q1 results which impressively beat management guidance and our estimates 
    due to better-than-expected transaction revenues, advertising revenues, 
    conversion ratios ("look-to-booker" ratio) and gross margin," said 
    Levitan. "Travelocity's Q1 earnings conference call is scheduled for later 
    this morning, after which we anticipate revising our earnings estimates. 
    We note, in its Q1 earnings press release issued yesterday, the company 
    provided guidance to expect 2001 cash EPS of $0.17-$0.21 per share. This 
    compares to our previous 2001 cash EPS estimate of $0. We believe 
    investors should react positively to Travelocity's announcement of better- 
    than-expected Q1 results and cash profitability. We note that despite a 
    70% appreciation in TVLY shares in recent weeks, the stock remains 15-20% 
    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 long-term oriented 
      Turnstone Systems, Inc. 
    (Nasdaq: TSTN) $6.13 
    Market Performer 
    2001E EPS: ($0.55), down from ($0.34) 
    2002E EPS: ($0.47), down from ($0.28) 
      Paul Johnson, Communication/Networking 
    "Turnstone's reported results for the March quarter were slightly above 
    our and Street expectations," said Johnson. "Revenues of $6.6 million and 
    an "adjusted" loss of $0.08 per share came in above our original estimates 
    of $5 million and operating loss per share of $0.11.  The company 
    announced two new customers in the quarter -- EATEL and Pine Tree 
    Networks. Despite the slight upside and customer acquisition, visibility 
    for the company continues to be virtually non-existent. We are lowering 
    estimates for fiscal 2001 and 2002 to reflect the virtual lack of 
    visibility into the future.  We do believe that our new estimates are 
    conservative, however. We are maintaining our Market Performer rating on 
    the shares of Turnstone Systems." 
      Advanced Micro Devices, Inc. 
    (NYSE: AMD) $27.70 
      Eric Rothdeutsch, Semiconductors/Computer Hardware 
    "As one of the few semiconductor companies not to revise its March quarter 
    guidance, AMD reported solid 1Q01 revenues of $1.19 billion, up 1.2% QoQ 
    and ahead of our $1.07 billion estimate," said Rothdeutsch. "EPS was 
    $0.37, beating consensus by $0.04 and our estimate by $0.07.  Our F2001 
    and F2002 EPS estimates remain intact at $1.50 and $1.90, respectively. We 
    are reiterating our Buy rating and are raising our 12-month price target 
    from $31 to $35, or 18.4 times our F01 EPS estimate of $1.90.  We note 
    that Intel is trading at 45 times our F01 EPS estimate of $0.70, or at a 
    30 multiple premium to AMD, a gap we expect to narrow." 
      Alza Corporation 
    (NYSE: AZA) $44.04 
      Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals 
    "With what we regard as exceptional growth prospects for Concerta in the 
    near term, and with Alza's strong technology platform over the long term, 
    we expect significant and sustainable strong sales and above 20% EPS 
    growth for Alza operations alone," said Hazlett. "We continue to rate AZA 
    shares Buy." 
      Celestica Inc. 
    (NYSE: CLS) $43.00 
      J. Keith Dunne, Electronic Manufacturing Products & Services 
    "CLS reported adjusted 1Q01 Cash EPS of $0.39, double $0.20 last year, and 
    in line with our $0.39 estimate as 4% higher sales offset slightly lower 
    interest income," said Dunne. "Equally important, CLS indicated 2Q01E Cash 
    EPS may be slightly ahead of our estimates on higher sales and better 
    margins. We are maintaining our FY01E Cash EPS but are pulling forward 
    $0.02 into 2Q to reflect greater near term sales expectations despite a 
    softer economy. Importantly, CLS has $482M in cash that can be used for 
    acquisitions, which are not in our forecast. We are maintaining our Buy 
      Charlotte Russe Holding Inc. 
    (Nasdaq: CHIC) $28.10 
      Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers 
    "Charlotte Russe reported that Q2:F01 (March) EPS increased 44.2% to $0.14 
    from $0.10 in Q2:F00, nicely exceeding our $0.13 estimate," said 
    Kloppenburg. "Importantly, CHIC's Q2:F01 earnings were negatively impacted 
    by a calendar shift that moved approximately $3 mm in post-Christmas sales 
    to the first fiscal quarter this year vs. the second fiscal quarter last 
    year. We believe this calendar shift pulled approximately $0.02 of EPS 
    into Q1:F01 from Q2:F01. Given the $0.01 earnings upside in Q2:F01, we are 
    raising our F2001 EPS estimate by $0.01 to $1.11, which translates to 
    32.7% EPS growth from $0.83 in F2000. Our F2002 EPS estimate remains 
    $1.43. Our C2001 EPS estimate increases $0.01 to $1.22 vs. $0.95 in C2000. 
    Our C2002 EPS estimate increases to $1.56 from $1.55 prior. We believe 
    CHIC shares should be able to maintain their current valuation going 
    forward, as we expect the company continues to outperform competitors in a 
    difficult environment. Furthermore, given the company's strong track 
    record of exceeding current earnings estimates, we believe shares should 
    appreciate as we move through 2001 and the company generates upside to 
    investors' current earnings outlook. As a result, we maintain our Buy 
    rating on CHIC shares." 
      Citrix Systems, Inc. 
    (Nasdaq: CTXS) $26.55 
    Long-Term Attractive 
      Mark Perutz, eBusiness Infrastructure 
    "Yesterday, Citrix reported solid Q1:01 results that effectively met our 
    estimates," said Perutz. "Revenues were $132.8 million, slightly ahead of 
    our estimate of $130.8 million.  Revenue for the quarter represented an 8% 
    sequential increase over the prior quarter, and a 4% year/year increase, 
    finally surpassing Citrix's Q1:00 record revenue of $127.5 million. 
    Operating EPS was $0.17, meeting our estimate of $0.17.  We are impressed 
    with Citrix's ability to post another quarter of solid growth in a 
    difficult environment.  While Citrix did meet our estimates, it was not 
    immune to the difficult IT spending environment in the US. Based on 
    Citrix's solid Q4:00 performance and near-term demand for its products, we 
    are maintaining both our revenue and operating EPS estimates for the 
    remaining quarters of 2001. Despite the near-term strength in demand for 
    Citrix's solutions, we still harbor concerns about its long-term 
    prospects. We are reiterating our LTA rating." 
      Eli Lilly and Company 
    (NYSE: LLY) $79.85 
      Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals 
    "We believe 2001 has the potential to be an exciting year for Eli Lilly, 
    with possible FDA approvals for Zovant for sepsis and Forteo for 
    osteoporosis, and regulatory filings for Cialis for erectile dysfunction, 
    atomoxetine for attention-deficit/hyperactivity disorder and duloxetine 
    for depression/incontinence," said Hazlett. "We continue to rate LLY 
    shares Buy." 
      Equifax Inc. 
    (NYSE: EFX) $31.68 
    Market Performer 
      Andrew Jeffrey, eProcessing/ePayment 
    "Equifax reported 1Q01 EPS of $0.35 on revenues of $479.7 million 
    yesterday, modestly ahead of our $0.35 and $470.5 estimates," said 
    Jeffrey. "We estimate that total revenues were up approximately 6% in the 
    quarter, on a pro forma basis, the fastest growth the company has enjoyed 
    in about two years.  These improving results were driven by strong 
    mortgage refinance volume and the first signs of traction in the company's 
    Internet initiatives. Although the company's revenue growth seems to have 
    recovered -- albeit against last year's easy comparisons -- we are 
    maintaining our Market Performer rating.  This stance results from our 
    view that the company's revenue rebound is still tenuous in a slowing 
    economy and the shares are roughly fully valued." 
      Keynote Systems, Inc. 
    (Nasdaq: KEYN) $12.98 
    Long-Term Attractive 
      Richard Juarez, eCommerce Infrastructure Services 
    "Keynote Systems reported FY 2Q01 revenues of $12.0 million and EPS of 
    $0.07, both in line with the April 3, 2001 pre-announced results," said 
    Juarez. "FY 2Q01 revenue from dotcoms and ISPs is estimated at 30% of 
    total revenue, down from 35% in FY 1Q01.  We are maintaining our Long-Term 
    Attractive rating and future period estimates based upon the company's net 
    cash position of an estimated $11.89 per share at March 31st, 2001. As we 
    have stated before, we believe that in order to gain back investors' 
    attention and support, Keynote must 1) reverse the declines in customers, 
    URLs measured, and revenue/URL, 2) pull forward operational profitability 
    via more effective expense management, and 3) leverage and deploy its cash 
    reserves more effectively." 
      Merck & Co., Inc. 
    (NYSE: MRK) $79.43 
    Market Performer 
      Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals 
    "March prescription data for key Merck drugs shows that Fosamax continues 
    to show strength due to its new once-weekly dosage," said Hazlett. "Vioxx 
    and Singulair have seen share growth gains; growth for both could 
    moderate, however.  In part due to additional generics arriving for a 
    number of products, including possibly Prilosec, we continue to rate MRK 
    shares Market Performer." 
      Netegrity, Inc. 
    (Nasdaq: NETE) $34.34 
      Dane Lewis, Infrastructure: Systems & Software 
    "Netegrity announced yesterday that it has opened a new office in Japan 
    and released the Japanese version of its flagship product," said Lewis. 
    "We believe there is a large market opportunity for Netegrity 
    internationally as the company is still at the beginning of expanding this 
    channel. With its dominant market share (approximately 75%), we believe 
    that NETE is very well positioned in the centralized Web-access management 
    market. Netegrity is trading at 10x our estimated FY2001 revenues and at a 
    PE of 70x while growing revenues at 117% and earnings at 513%. We continue 
    to recommend purchase of the stock at these levels." 
      Pfizer, Inc. 
    (NYSE: PFE) $42.40 
      Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals 
    "March prescription data for key Pfizer drugs shows that Lipitor, the 
    cholesterol-lowering class leader, continues to show strength due to 
    continued solid sales force focus, though competition is in the wings with 
    new competitor Crestor," said Hazlett. "Though market share has declined 
    modestly for Celebrex (co-marketed with Pharmacia), script growth 
    continues to be robust for the drug.  Due to its potent combination of 
    excellent sales force, solid core marketed drugs, and relatively few near- 
    term patent expirations, we continue to rate PFE shares Buy." 
      Sepracor Inc. 
    (Nasdaq: SEPR) $43.50 
    Strong Buy 
      Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals 
    "The remainder of 2001 should be positive for Sepracor, including filing 
    of (s)-zopiclone in 2H01 for sleep disorders and a number of compounds 
    moving into phase III," said Hazlett. "In addition to its in-house 
    portfolio, Sepracor will be receiving royalties on desloratadine for 
    allergy, Allegra for allergy from Aventis and norcisipride for GERD from 
    Johnson and Johnson, among others.  We reiterate our Strong Buy rating on 
    SEPR shares." 
      Schering-Plough Corporation 
    (NYSE: SGP) $38.29 
    Market Performer 
      Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals 
    "March prescription data for key Schering-Plough drugs shows that 
    Schering's two key drivers, namely Claritin (allergies) and Rebetron 
    (hepatitis C) continue to be pressured," said Hazlett. "Although PEG- 
    Intron will likely supplement Schering's hepatitis C franchise, we believe 
    competition from Roche's Pegasys will likely be significant. 
    Additionally, timing of final desloratadine (allergies) approval remains 
    uncertain, potentially hindering a switching campaign from Claritin in 
    advance of its patent expiration (possibly year-end 2002).  We continue to 
    rate SGP shares Market Performer." 
      Unless otherwise noted, prices are as of Tuesday, April 17, 2001. 

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SOURCE  Robertson Stephens, Inc.  

    -0-                             04/19/2001 
    /CONTACT:  Elizabeth Denton of Robertson Stephens, Inc., 212-407-0470/ 
    /Web site: 

CO:  Robertson Stephens, Inc.; KLA-Tencor Corporation; Advanced Fibre  

     Communications, Inc.; Altera Corporation; Broadcom Corporation; Credence 
     Systems Corporation; Dupont Photomasks, Inc.; Extreme Networks, Inc.; 
     Hi/fn, Inc.; Immunex Corporation; Internet Security Systems, Inc.; i2 
     Technologies, Inc.; Linear Technology Corporation; Newport Corporation; 
     Pinnacle Entertainment, Inc.; Sanmina Corporation; Siebel Systems, Inc.; 
     Tellabs, Inc.; Teradyne, Inc.; Transwitch Corporation; 
     Inc.; Turnstone Systems, Inc.; Advanced Micro Devices, Inc.; Alza 
     Corporation; Celestica Inc.; Charlotte Russe Holding Inc.; Citrix 
     Systems, Inc.; Eli Lilly and Company; Equifax Inc.; Keynote Systems, 
     Inc.; Merck & Co., Inc.; Netegrity, Inc.; Pfizer, Inc.; Sepracor Inc.; 

 Schering-Plough Corporation 
ST:  California 
-0- Apr/19/2001 14:55 GMT
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