& cplSiteName &

Corvis Stock Tanks

Light Reading
News Analysis
Light Reading
11/17/2000
50%
50%

Message boards are buzzing, and Corvis Corp. (Nasdaq: CORV) officials are clamming up, as the company's stock goes ballistic -- in the wrong direction.

Over the last two days, Corvis shares have lost roughly 40 percent of their value, as the average daily volume has nearly doubled.

Numerous calls to Corvis's press relations and investor relations departments, placed last night and this morning, were not returned.

At 1:30 p.m. today, Corvis shares were trading off nearly 15 percent, at about $32. More than 5 million shares of Corvis had already been traded on Friday, almost twice the normal average daily volume of 2.6 million shares. Shares of Ciena Corp. (Nasdaq: CIEN) and Sycamore Networks Inc. (Nasdaq: SCMR), two stocks in the same group, were up 3 percent and down 4 percent, respectively.

Contributors to several message boards, including Yahoo Finance, circulated rumors that Corvis has lost a major customer. That would be a major blow, as the company has announced only one paying customer so far.

Corvis shares have always been volatile, in part because 91 percent of the shares are still tied up among insiders, who cannot yet sell their shares on the market. But the losses and the trading volume of the last two days are larger than usual. Corvis officials have said in the past that they expect insider shares to be unlocked for selling in January of 2001.

In its last quarterly conference call, Corvis Chairman and CEO David Huber said all of the company's revenue was derived from field trials and commercial shipments with Broadwing Communications (NYSE: BRW). The field trial with Williams Communications Group (NYSE: WCG) is "progressing as scheduled" and is expected to convert to revenue in the fourth quarter of 2000, said Huber. The company has plans to announce additional customers in the fourth quarter.

Of course, it's too early to say that the successful conversion of one customer means Corvis deserves its multibillion-dollar market capitalization -- which has greatly contributed to the risk and volatility in the stock price. Corvis must convert the rest of its customers to meet the $300 million in revenue that management has projected for the year 2001.

In addition to Broadwing and Williams, Corvis has announced a contract with Qwest Communications International Corp. (NYSE:Q), which is not expected to result in revenue until the second half of next year.

-- R. Scott Raynovich, executive editor, Light Reading http://www.lightreading.com

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
The 'gleaming city on a hill,' Steve Saunders calls it. But who is going to take us from today's NFV componentry to the grand future of a self-driving network? Here's a look at the vendors hoping to make it happen.
Flash Poll
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Could 5G Have Found Its Glass Ceiling?
Dan Jones, Mobile Editor, 9/20/2017
1 Million Pirate Set-Top Boxes Sold in the UK
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 9/20/2017
Why Amazon May Be Cable's Biggest Threat
Mari Silbey, Senior Editor, Cable/Video, 9/22/2017
Comcast Shuts Down OTT Again
Mari Silbey, Senior Editor, Cable/Video, 9/19/2017
Charter Has a Secret TV App for Colleges
Mari Silbey, Senior Editor, Cable/Video, 9/20/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed