DSL equipment suppliers revise earnings downward

The instability of many DSL network providers and their ISP resellers is taking a toll on DSL equipment suppliers. This week, at least three suppliers downgraded their revenue expectations citing decreased market demand.

          The instability of many DSL network providers and their ISP resellers is taking a toll on DSL equipment suppliers. This week, at least three suppliers downgraded their revenue expectations citing decreased market demand.

          Over the last few weeks, several DSL providers have filed for bankruptcy, cut back operations, or left the business.

          The DSL equipment suppliers downgrading their revenue projections included Efficient Networks, Next Level Communications and Copper Mountain Networks.

          Efficient says its revenue for the second quarter of fiscal 2001 would be in the $US100 million to US$102 million range. The company says revenue would have been higher if two of its major customers had placed anticipated orders. The company did not name the two customers.

          Copper Mountain warned its revenue for the fourth quarter, ending December 31, 2000, would be in the $US46 million to $US49 million range. The company says its earnings were hurt by weakness in its competitive local exchange carrier customer base and specifically by the company's decision not to record about $US8 million of equipment shipped. The equipment was delivered to a customer currently in financial difficulty that may not be able to pay, Copper Mountain officials says.

          Next Level blames its downward revision on reduced revenue from Qwest Communications International and slower than anticipated customer development in Korea. For the quarter ending December 31, 2000, the company expects revenue to be approximately $US31 million.

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