Corvis Mania Continues
Yesterday evening Corvis Corp. released its first earnings report since the company went public last month (see Avici and Corvis Make Stunning Debuts).
Even though the company still has zero earnings to report, and losses grew by nearly $100 million in the last quarter, analysts remain bullish about its future. Two days ago, CIBC Worldwide Markets issued a BUY on the stock, predicting that it would hit $125 per share within 18 months (at press time it was at 85.5).
More significant news is expected from the company when it announces third-quarter results in October. That’s when it's expected to report its first revenues -- including cash coming in from three big deals that have already been announced with Qwest Communications International Inc. (Nasdaq: Q), Williams Communications Group (NYSE: WCG), and Broadwing Inc. (NYSE: BRW).
CIBC expects earnings for Q3 to be $8.5 million and yearend revenue for 2000 to be about $33.5 million. Revenue for the following year is expected to grow to about $270 million, according to CIBC. And despite heavy losses, the analyst firm expects cash flow to turn positive in 2002.
-- Marguerite Reardon, senior editor, Light Reading, http://www.lightreading.com