Covad - Himmel oder Hölle - 500 Beiträge pro Seite

[Bannerman]

Aufgrund der m.M. reißerischen Überschrift des bisherigen Covad-Threads eröffne ich hiermit einen neuen und hoffe auf Eure rege Beteiligung.

Nächste Woche steht mal wieder die Bekanntgabe der Quartalszahlen an, sowie das Nasdaq-Hearing zum Delisting. Hoffentlich, auch im Sinne von Covad, kommt diesmal was dabeiherum.

Covad nähert sich mal wieder der 1$-Marke.

Die große Frage lautet also, Totalverlust durch DELISTING, oder: Covad Teil II Ein Phönix steigt aus der Asche.

Bezüglich aktueller Nachrichten sei auf das COVAD-Board bei Yahoo Finance/US verwiesen. Auf ein Posting verzichte ich an dieser Stelle, da die "Neuigkeiten" meiner Meinung nach nur institutionelles Bashing darstellen.

Ein schönes Wochenende wünscht Euer Bannerman.

[ninajan]

hi,

weiß jemand von euch , wann hier nun die Zahlen kommen. Ich warte besser so lange bis zum Einstieg !

[Bannerman]

Für Morgen ist glaube ich das Nasdaq-Hearing zum Delisting angesetzt. Bis dahin müssen die Zahlen gekommen sein. IMHO sollte das heute der Fall sein.
Wenn sie rauskommen, sollte das hier veröffentlicht werden:
http://quote.yahoo.com/q?s=COVDE&d=c&k=c4&t=1d

Es dürfte wohl ratsam sein, mit dem Einstieg bis zur Veröffentlichung zu warten, selbst auf die Gefahr eines Einstiegs zu höheren Preisen, da ein Delisting-Beschluß auf den Kurs verheerende Wirkung haben dürfte (außerdem sind die Zahlen erwartungsgemäß wahrscheinlich auch nicht so toll).

[Bannerman]

Also die Quartalsergebnisse sind jetzt mit dem erwartet negativen Ergebnis rausgekommen. Es gilt 1,4 Mrd. $ zu beklagen. Das ist echt ein Hammer, vor dem Hintergrund einer Börsenbewertung von knapp 0,18 Mrd $. Besteht da noch Hoffnung?
Erstaunlich ist, wie ich bereits geschrieben habe, das der Kurs intraday immer recht stabil bleibt. Mein Kursziel von 1,10 Euro konnte leider nicht erreicht werden. Eine entsprechende Order von mir wurde nicht ausgeführt, obwohl der Kurs an diesem Tag sogar auf 1 Euro (!?) sank. Nun gut.

Sollte der Kurs jetzt nicht längere Zeit unter 1 Dollar sinken, dürfte mit dem Vorlegen der Quartalszahlen ein Delisting hoffentlich erstmal vom Tisch sein.

Trotz der Hammermeldung mit den 1,4 ist der Kurs nur ganz kurz unter 1 $ abgesunken. IMHO könnte da jemand im Großen Stil einkaufen. Mal sehen was die nächste Zeit bringt.

Intraday-Chart Nasdaq:


Grüße und good trades mit Covad,
Euer Bannerman

[Bannerman]

Im amerikanischen Covad-Board diskutieren sie gerade eine neue Erfindung, die den Radius der ADSL-Dienste von 12000 auf 30000 Fuß ausdehnen kann. Dies würde Covad erlauben, ohne größere Investitionen statt wie bislang 20% der amerikanischen Fläche dann 40% abzudecken.

Produktbeschreibung:
PG-FlexPlus Edge RAM

The line-powered PG-FlexPlus Edge RAM complements CO-based DSLAMs and DLC-based remote DSLAMs by extending the effective ADSL serving range. This opens lucrative market opportunities for carriers by enabling them to offer ADSL-based services to subscribers between 12,000 feet and 30,000 feet from a CO or DLC, which is approximately 20% of homes in North America. The PG-FlexPlus Edge RAM includes a splitter for combining existing POTS with ADSL, is easy to install, works with existing home wiring, and supports industry standard ADSL or G.Lite modems.

The PG-FlexPlus Edge RAM can be subtended from the PG-FlexPlus Field Shelf with the simple addition of corresponding line interface cards and an ATM switch interface card on the PG-FlexPlus Field Shelf. Existing voice remotes can co-exist harmoniously with the new ADSL-based remotes.

Quelle:http://stele.adc.com/edge/edge.html

[Bannerman]

THE RISING PRICE OF INTERNET ACCESS
High Speed, Higher Fees for Net Access
As Competition Dwindles and Broadband Service Grows, Users Pay More Sunday, June 3, 2001; Page H01

A price war is breaking out among many of the companies that provide access to the Internet: They`re now racing toraise their rates.

In recent weeks, at least eight major cable or telephone companies have joined big Internet providers such as AOL Time Warner Inc. to boost prices. On Thursday, Comcast Corp. became the latest to announce plans for an increase, its first since launching Internet service in 1996. Starting July 1, new customers -- and new customers alone -- will pay $5 more a month, or $44.95 -- a 12.5 percent increase.

The price increases come as a shakeout in the telecommunications sector has eliminated some competitors and seriously hobbled others. With fewer strong companies providing service, there is not as much pressure to hold down rates, economists and analysts said.

The rising prices are rekindling debate over the federal government`s decision to deregulate the telecommunications industry and not intervene in the Internet marketplace. Concern also is growing over whether the expense will widen the gap between those who have access to the Internet and those who do not -- a worry because using the global computer network is fast becoming part of everyday life. Governments and businesses are putting more and more of their operations online, as are a variety of cultural institutions. Meanwhile, entertainment companies and others are preparing to roll out new online music, video and other data-rich services.

Some Internet providers said they had set past rates artificially low to compete with upstarts that were discounting service in an effort to build a customer base. Many of those upstarts have since stumbled, forcing them to curb their activities or merge with a more established company.

In the Washington region, for instance, Northpoint Communications shut down its DSL (digital subscriber line) business and UUNet was swallowed up by WorldCom Inc.

Higher rates will allow the remaining Internet providers to improve service and expand their offerings, company officials argue. Cable companies are particularly eager to show Wall Street that their decision to spend billions of dollars to build fiber-optic networks is paying off.

Tom Wolzien, senior media analyst with Sanford C. Bernstein & Co., said many companies now feel comfortable raising rates because they have a backlog of customers to hook up.

In particular, local phone giants such as SBC Communications Inc. and Verizon Communications Inc. "are having a tough time keeping up with the installation of DSL at the rates people are demanding," Wolzien said.

What customers are clamoring for most are "broadband" services that deliver data at much higher speeds than simple dial-up telephone connections. Cable modems and DSL technology provide turbocharged access to the Internet with download speeds up to 50 times as fast as a regular dial-up modem. There is a lively debate over which service is superior, cable or DSL, but both are signing up customers at a brisk pace. During the first quarter of this year, Verizon added 180,000 new subscribers and AT&T Broadband, the nation`s largest cable company, added more than 200,000.

At top speed, a cable modem can download a 1 1/2-hour movie in 18 minutes, a task that could take as long as 16 hours using a dial-up modem that transmits at 56,000 bits per second. But cable`s Internet service is shared by users and can slow down when too many people in a neighborhood are online at once. DSL has slower top-end speeds but can offer a more consistent service.

Consumer advocates cite the price increases for these services as evidence that the deregulation of the telecommunications industry five years ago was a failure.

"This demonstrates more clearly than anything that there are no meaningful competitive forces in this market," said Gene Kimmelman, co-director of the Washington office of Consumers Union. "You have the cable and telephone companies claiming that they want to compete against one another and challenge each other to offer consumers better deals for broadband services. Lo and behold they both jack up their rates for broadband, demonstrating that they have no intention to compete on price."

But don`t look for the government to step in to keep prices down anytime soon. Federal Communications Commission Chairman Michael K. Powell, a Republican with a distinctly deregulatory bent, has said that it is too soon to make any judgments about the direction of the high-speed Internet marketplace.

"We`re talking about services that, in reality, really only became a retail alternative in `98. We have early adoption going on. I don`t think that it`s a mass market yet," Powell said in comments to a group of industry analysts and researchers.

In those same comments, Powell predicted that the fee increases would slow the rollout of the high-speed Internet.

"I don`t know whether they`re justified or not, but I think that they`re going to hurt growth," Powell said.

The cable industry is under particular pressure to show profits from a business it has been building for several years. "There is a push by Wall Street to get some payback for the capital investment," said Cynthia Brumfield, president of Broadband Intelligence Inc., a Bethesda-based research firm.

It was no surprise to Brumfield that AT&T Broadband was one of the first cable companies to announce it was raising rates. Its financially struggling parent company is in the middle of a major corporate reorganization and it needs to find ways to generate more revenue, she said.

On Friday, AT&T Broadband raised rates for almost all of its 1.3 million cable subscribers from $39.95 to $45.95 a month -- a 15 percent increase.

AT&T insists the price hikes are not related to its overall financial situation.

"We think the new pricing best reflects the value of the product," said Steve Lang, AT&T Broadband spokesman.

Of course, not every Internet provider is raising rates. Some see opportunities to win new business by holding the line on bills. Last week, Microsoft Corp., the nation`s No. 2 Internet provider, pointedly said it will not follow online giant America Online`s decision to boost its monthly fees by 9 percent, to $23.90 from $21.95, effective in July. Microsoft said AOL customers who switch to its MSN service will receive three months of free Internet access and a guaranteed rate of $21.95 a month for unlimited service until Jan. 1, 2003.

Comcast, meanwhile, raised rates only for new customers. The dominant cable provider in the Washington area said existing customers will continue to pay $39.95 a month for service and use of a special modem.

Analysts say the latest pricing strategies are part of an ongoing experiment to find the right mix of price and service. Verizon, for instance, announced on May 3 plans to require new customers who subscribe to its lowest tier of service -- which costs $39.95 per month -- to pay a $200 set-up fee. Previously, that fee was waived.

In fact, Verizon no longer even advertises that tier; instead, it steers new customers to an introductory package at $49.95 per month that has several promotional features including a free DSL modem, a PC camera, four e-mail boxes, and space on the company`s servers to store e-mail and Web sites.

Verizon spokesman Larry Plumb noted that customers are getting more for their money, including faster speeds and more storage capacity, under the company`s new pricing plans. Plumb said the company felt it had to boost its access speeds and storage capacity because more of its customers are using the Internet to zap music and photos to one another -- applications that gobble up capacity.

"The whole thing is to make the service more capable and match what people are doing today," Plumb said.

John Orlando, a lobbyist who lives in Bethesda, has subscribed to Verizon`s DSL service for 18 months at the $39.95-a-month rate. The few times the service has gone out, Orlando said, he became frustrated by the slow speed and inconvenience of having to use a standard telephone line to connect to the Internet.

"I`m probably willing to pay more than I would have as a new subscriber because I have gotten used to it," Orlando said.

But if newcomers become turned off by the cost, analysts say, the Internet providers may not be able to win over more people like Orlando. It also could be a huge disappointment to several industries that are counting on the speedy rollout of a national broadband network to launch new businesses of their own.

For instance, Hollywood and other entertainment industries are planning to sell movies, music and video games over the Internet. But this new business depends on the development of a high-speed Internet service that allows mass-market customers to download products quickly.

Some economists question whether a marketplace dominated by cable and local telephone companies, two industries that once enjoyed life as regulated monopolies, is competitive enough to keep prices in line. Many of the companies that have gone out of business or sharply curtailed their offerings were upstart telephone companies or Internet providers that leased lines from the traditional local telephone giants.

"Two players is not enough for a horse race," said Lawrence J. White, a professor of economics at New York University`s Stern School of Business. With fewer players in the market, he said, the possibility is increased that big companies will coordinate price hikes and service offerings.

"Two [primary players] is not as good as three or five or 20," said White, who served as chief economist for the Justice Department`s antitrust division during the Reagan administration.

Keith Kennebeck, a broadband analyst with Strategis Group, a Washington-based telecommunications consulting firm, predicts that even if rates for high-speed Internet service rise now, they will eventually have to come back down.

For the Internet to really take off, cable and DSL service must fall back down closer to $30 a month, Kennebeck said. Until the price comes back down, the service will remain a luxury item for most homes, he predicted.

And with so much riding on the widespread distribution of a high-speed Internet service, some analysts question the latest round of rate hikes. Instead of building profit margins, the analysts say, now may be the time to continue building market share and demand. "The jury is out as to whether or not this is the time to raise rates," Brumfield said. High-speed Internet service "is not yet a must-have," he said.

Quelle:http://www.washingtonpost.com/wp-dyn/articles/A13423-2001Jun…

[Bannerman]

Friday June 1, 5:55 pm Eastern Time
Press Release
Covad Receives Notice From Nasdaq
Covad Receives Nasdaq Notice Relating to Net Tangible Assets
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 1, 2001--Covad Communications (Nasdaq:COVD - news), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, announced that it has received a Nasdaq Staff Determination indicating that the company does not meet the net tangible assets/shareholder equity requirement for continued listing set forth in Standard 1 under Nasdaq Marketplace Rule 4450 (a)(03) and that its securities are subject to delisting from the Nasdaq National Market.

Covad intends to request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination on the notice of deficiency regarding the net tangible asset/shareholder equity test and the company`s plan to achieve compliance with the listing requirements. However, there can be no assurance that the Nasdaq Listing Qualifications Panel will grant the company`s request for continued listing.

``Nasdaq has acknowledged that we rectified our deficiency regarding the filing of our Form 10-K for the year ending December 31, 2000. We currently expect to file our Form 10-Q for the quarter ending March 31, 2001, during the week of June 18, if not sooner. We are aware of this issue, as identified in our recently filed Form 10-K,`` said Chuck McMinn, Covad chairman. ``We are examining all options to maintain our listing. We will seek to convince NASDAQ that, with our first quarter results and additional funding we are seeking, Covad expects to satisfy the NASDAQ National Market listing requirements in a reasonable period of time.``

Quelle:http://biz.yahoo.com/bw/010601/0360.html

[Bannerman]

Tuesday June 5, 5:30 am Eastern Time
Press Release
Covad Appoints Charles E. Hoffman President and Chief Executive Officer

Globally-Respected Telecommunications Industry Leader Poised to Lead Covad On the Path to Profitability


SANTA CLARA, Calif.--(BUSINESS WIRE)--June 5, 2001--Covad Communications (Nasdaq:COVD - news), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, announced that the Board of Directors will name Charles E. Hoffman as Covad`s new president and chief executive officer, effective June 25, 2001.

At that time, Frank Marshall will resign as the interim CEO and will remain on Covad`s Board of Directors as vice chairman. Hoffman will actively work with Frank Marshall and Chuck McMinn, Covad`s chairman, to lead the senior management team and provide strategic direction, oversee Covad`s relationship with the financial community, and manage day-to-day operations.

``Charlie`s extensive telecommunications and broadband expertise, understanding and passion for the customer and proven ability to successfully lead a company to greater heights are just a few reasons why he is the right person to be Covad`s next president and CEO,`` said Chuck McMinn, Covad`s chairman. ``Covad has weathered some tough times and is now prepared and ready for new leadership that will grow and drive the company to profitability. I commend Frank Marshall for helping transform the business from the maximum growth strategy of 2000 to the quickest path to profitability strategy we are on now. Charlie`s strong leadership style, marketing and channel expertise, and competitive, fast-paced, results-driven approach will help us to continue executing on today`s strategy.``

``Although the DSL industry has its mix of challenges, I am confident that the worst is behind us and that Covad is now, more than ever, better positioned to capitalize on the broadband opportunity,`` said Charles Hoffman. ``Covad`s previously-announced first quarter operational results demonstrate that the demand for DSL continues to soar and that Covad has the systems and capabilities in place to scale the business by quickly adding subscribers and new services to its nationwide network. I`m eager to dive into the business, execute on our profitability plan and re-establish the confidence in Covad`s leadership and strategic direction.``

A 20-year telecommunications industry veteran, Hoffman will bring to Covad a wealth of telecommunications experience from the wireless, cable, local, and long-distance telecommunications sectors. Most recently, he served as president, CEO and director of Rogers Wireless Communications Inc., Canada`s largest wireless communications services provider. Under his direction and leadership, changes in marketing, distribution, sales, billing, customer care and network expansion drove the growth of the company from the number four provider to the largest provider in Canada with over three million subscribers. In the past two years, he raised over a billion dollars through a private debt offering and a strategic equity offering.

Prior to Rogers Wireless, Hoffman spent two years as president of the Northeast region for Sprint PCS, where he helped build the nationwide wireless carrier, which was a start-up company owned by Sprint, TCI, Comcast, and Cox Communications. Before joining Sprint PCS, he spent 16 years at Southwestern Bell (SBC) in various senior positions, including regional manager, general manager, and vice president and general manager. As Cellular One`s president and general manager for several East Coast regions, Hoffman managed to turn around the second and fourth largest SBC markets, Boston and Washington/Baltimore, from underperformers to market leaders within record time. He also gained extensive global telecom experience as managing director of wireless for SBC International and director general for Telcel, the largest nationwide wireless carrier in Mexico.

Earlier in his career, Hoffman spent several years in sales and marketing at SBC and IBM. He is currently on the Board of Directors for Wysdom Inc., Cellular Telecommunications Internet Association, Canadian Wireless Telecommunications Association and Cibernet, Inc.

Quelle:http://biz.yahoo.com/bw/010605/0046.html" target="_blank" rel="nofollow ugc noopener">http://biz.yahoo.com/bw/010605/0046.html

[thebull 2]

Tuesday June 12, 6:46 am Eastern Time

WSJ: Verizon Sues DSL Competitor Covad

NEW YORK (Reuters) - U.S. local telephone carrier Verizon Communications Inc has filed a lawsuit against Covad
Communications Group Inc (Nasdaq:COVD - news) accusing the company of falsifying complaints about Verizon`s service, the
Wall Street Journal reported in its online edition on Tuesday.

Citing the suit filed with the U.S. District Court for the Northern District of California in San Jose, the newspaper reported Verizon alleges Covad managers
instructed employees to deceptively shift blame to Verizon for many of the technical difficulties Covad has in providing high-speed Internet service using
digital-subscriber line (DSL) technology.

Verizon`s suit comes amid a legal and regulatory brawl between the two companies, the newspaper said. Covad filed an antitrust suit against the New York-based
Verizon in 1999, and Verizon is appealing the loss of a patent suit against Covad, it reported.

Covad`s general counsel, Dhruv Khanna, denied that Covad invented complaints about Verizon`s performance to cover up its own ineptitude, the newspaper
reported.

``Our employees certainly were not instructed to blame Verizon for anything,`` Khanna told the paper.


quelle;http://biz.yahoo.com/rb/010612/business_verizon_covad_dc.htm…

gruss
tb 2

[Bannerman]

Wednesday June 20, 10:24 am Eastern Time
Press Release
Covad Communications Announces First Quarter 2001 Results
Revenue Increases 29 Percent to a Record $71.2 Million, Net Loss from Operations Decreases by $99.8 Million
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 20, 2001--Covad Communications Group, Inc. (Nasdaq:COVDE - news) announced financial results for its first quarter of 2001.

Revenue for the quarter ended March 31, 2001 was a record $71.2 million, representing a 29 percent increase over revenue of $55.2 million for the quarter ended December 31, 2000. Loss from operations for the quarter ended March 31, 2001 was $174.7 million. Contributing to this loss for the quarter was Covad`s previously announced restructuring charge of $14.8 million. Excluding this restructuring charge, the loss from operations would have been $159.9 million in the first quarter, a reduction of $99.8 million in comparison with the fourth quarter of 2000 loss from operations of $259.7 million, not including charges for restructuring of $5.0 million and $589.4 million for adjustments to the recorded value of long-lived assets to reflect their fair value.

Covad`s subscriber lines in service increased 16 percent to 319,000 lines, compared with 274,000 lines at December 31, 2000. This represents a 243 percent increase from Covad`s subscriber lines in service of 93,000 at March 31, 2000.

``Our results show we have taken a great first step on a path to profitability,`` said Chuck McMinn, chairman of Covad. ``Our operating performance has improved substantially this quarter as we continue to focus on increasing our productivity, lowering our costs, loading our network, and strengthening our distribution channels.

``However, our industry continues to experience substantial challenges and opportunities. Given some of the uncertainties that still remain within our distribution channels and our business in general, the financial and operating results for the three months ended March 31, 2001, are not necessarily indicative of the results that may be expected in future quarters and the full year 2001,`` continued McMinn.

Although the company expects to reduce the number of lines served through financially distressed ISPs in the second quarter, these and other efforts to reduce exposure to financially distressed ISPs are expected to result in lowered net subscriber line additions for the second quarter to approximately half the first quarter net subscriber line additions.

``We are taking a very disciplined approach to our efforts to strengthen our ISP channel. Although these efforts are not always easy, we believe that they will greatly reduce our exposure to financially distressed ISPs, allowing us to put this issue behind us in the shortest amount of time possible,`` said McMinn.

Quelle:http://biz.yahoo.com/bw/010620/0279.html

[Bannerman]

June 20, 2001

COVAD COMMUNICATIONS GROUP INC (COVDE)
Quarterly Report (SEC form 10-Q)
Item 2. MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Detailliertere Informationen (englisch)
Quelle:http://biz.yahoo.com/e/010620/covde.html

[Bannerman]

Live Pressekonferenz zu den Ergebnissen des 1.Quartals 2001,
ab 16.00h bis 18.00h im Web:
http://www.streetfusion.com/custom/wc.asp?eid=OBtWy5pl1RGUEA…

[Bannerman]

Monday June 25, 9:03 am Eastern Time
Press Release
Covad Announces That BlueStar Subsidiary has Executed an Assignment for the Benefit of Creditors
Customer Migration Available through Covad Safety Net; Covad Continues Direct Distribution Channel
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 25, 2001-- Covad Communications, Group, Inc. (Nasdaq:COVD - news), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced that its subsidiary, BlueStar Communications Group, Inc. and BlueStar`s operating subsidiaries, have executed Assignments for the Benefit of Creditors (the Assignment). The purpose of the Assignment is to shut down the BlueStar network, provide an orderly dissolution of BlueStar`s operations and provide for a transition of its customer lines.

BlueStar Communications Group, Inc, a subsidiary of Covad Communications, was acquired by Covad in September 2000 and, through its operating companies, has been engaged in direct sales of high-speed Internet access and related services.

Covad and its other subsidiary, Covad Integrated Services, are unaffected by the BlueStar action and will continue to operate in the normal course of business.

The Assignment eliminates the cost of maintaining the BlueStar operations. As a result, it reduces Covad`s operating cost by approximately $75 million over the next year, which will aid in Covad`s efforts to achieve profitability and extend Covad`s cash into July of 2002.

``This was not an easy decision to make, but one that we felt was important strategically in our drive to improve profitability,`` said Covad Chairman, Chuck McMinn. ``Covad acquired BlueStar at a time when the financial market conditions rewarded growth into Tier 2 and Tier 3 markets and as a fast means of developing a direct sales model. In the current financial market environment, BlueStar`s cost structure is not sustainable and is not supported by its current revenue-generating capabilities.

``We intend to continue with a direct sales distribution channel utilizing Covad`s more efficient network architecture and a direct sales effort consisting primarily of telesales supplemented by a small, in-person sales force. Direct sales have proven to be successful, contributing to three percent of total lines at the end of the fourth quarter of 2000 and seven percent of lines at the end of the first quarter of this year. With these major changes in the direct sales cost structure, we will be able to continue growing the direct sales business at a much lower cost and on a faster track to profitability,`` said McMinn.

Covad`s indirect Internet Services Provider distribution channel is not affected by this action.

BlueStar and Covad have entered into an asset purchase agreement in which Covad has purchased the right to offer service to BlueStar end user lines, subject to BlueStar`s right to seek higher offers. The migration of these lines to the Covad network will be achieved through the Covad Safety Net program. For some customers, a new DSL line will be required, which will include free installation and a DSL modem. Some of BlueStar`s lines are located in central offices that will cease operations and will not be able to be migrated to Covad`s network. In those cases, Covad will strive to help these customers locate another DSL provider. BlueStar customers should go to www.covad.net/safetynet or call 1-888/217-6968 to seek Covad`s assistance with their migration process.

BlueStar is expected to shut down its operation in 235 central offices in the BlueStar network after a reasonable transition period. Ninety-one of these are in BlueStar-unique areas and 144 are in Covad-overlap areas where both Covad and BlueStar have their own central office facilities. After this action, Covad`s network will encompass a total of 1,718 central offices, covering 40 to 45 percent of homes and businesses in the United States, and in 49 regions consisting of 94 Metropolitan Statistical Areas.

``As always, our biggest concern is to serve our customers as best we can. Our Covad Safety Net program has proven successful at migrating customer lines and providing an easy way to stay connected,`` added McMinn.

Simultaneous with the Assignment, BlueStar will release approximately 400 employees located in Nashville, Tenn. and Charlotte, N.C. and in offices throughout the southeast. Covad will provide severance arrangements and benefits continuation. Covad will be offering employment to approximately 70 former BlueStar employees to grow Covad`s direct sales distribution channels and provide support for operations and information technology services. A small number of BlueStar employees will help with the liquidation of the business.

The Assignee for BlueStar is Development Specialists, Inc., a financial and consulting and management firm with offices in Boston, Chicago, Los Angeles, Miami and London. The Assignee is charged with the orderly liquidation of BlueStar`s assets and distribution of any proceeds to BlueStar`s creditors. For creditors or other affected parties of BlueStar, all inquiries related to this action should be addressed to the BlueStar headquarters in Franklin, Tenn, at 615/778-6600.

Quelle:http://biz.yahoo.com/bw/010625/0226.html

[Bannerman]

Ab morgen tradet Covad wieder unter seinem alten Symbol an der Nasdaq "Covd".
[urlhttp://www.nasdaqtrader.com/dailylist/history/nasdaq/nq06262…[/url]

Zuvor war als Warnzeichen ein "E" angehängt worden, um anzuzueigen, daß es mit seinem Jahresbericht 2000 und dem Quartalsbericht für Q1 überfällig war.

[laab]

@Bannermann
Danke für den Hinweis.-ist wohl der Grund für 42% plus in 2 Tagen-oder umgekehrt !!??
schönen Abend

[Bannerman]

Nasdaq Intraday-Chart Covad (COVD)

Der Preis ist in Dollar $:


http://quote.yahoo.com/q?s=COVD&d=t

[Bannerman]

CLEC.COM - THE QUICK AND THE DEAD

http://www.clec.com/index.asp?page=SRarticle.asp?articlelD=6…

[Bannerman]

Wednesday July 11, 9:27 am Eastern Time
Press Release
Covad Announces Operating Statistics for the Second Quarter 2001
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 11, 2001--Covad Communications, Group, Inc. (Nasdaq: COVD - news), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced second quarter operating statistics as of June 30, 2001.

Covad has 333,000 lines in service on its network, a four percent increase from March 31, 2001. This figure does not include lines deployed on the BlueStar network, which are no longer included in Covad`s line count. It also reflects the continued disconnection of subscribers as Covad ended its relationships with some of its financially troubled resellers.
Approximately 51 percent of Covad`s total lines are business lines and 49 percent are consumer lines.
Covad`s direct channel represents two percent of its total lines. The other 98 percent of Covad`s lines are provided through a Covad reseller. The decrease in the percentage of lines served through Covad`s direct channel results from the exclusion of lines sold by BlueStar.
Fourteen percent of Covad`s total lines are served through resellers for which Covad recognizes revenue when it is paid, a two percent reduction from the previous quarter. This group includes Covad lines sold by BlueStar. These BlueStar subscribers have been offered the opportunity to switch to Covad`s direct service, Covad.net.
``We are taking measures to reduce the costs associated with our business, which includes disconnecting subscribers from financially distressed Internet service providers,`` said Chuck McMinn, Covad chairman. ``We are making very good progress in cleaning up our distressed line issues, which shows up in the lower net line growth for the second quarter that we predicted. The demand for broadband is still strong and we continue to install many new lines. Our lower net increase in lines also reflects the elimination of lines in BlueStar central offices where we no longer offer service. These lines will be disconnected or migrated to other service providers in the coming months.

``Our focus is on growing a strong, healthy business and focusing on our strongest channel partners,`` continued McMinn. ``A healthy reseller channel is very important to us as it continues to deliver the majority of our sales. We will continue our efforts to control costs and increase our subscriber base to maintain our position as the leading national DSL provider.``

Quelle:http://biz.yahoo.com/bw/010711/0190.html

Mag vielleicht nicht so rauskommen, aber die Restrukturierung scheint zu greifen, der Umsatz dürfte ab dem nächsten Quartal kräftig wachsen, und vielleicht bietet sich dann schon bald ein deutlicher Silberstreif am Horizont.

[Mamboking]

http://messages.yahoo.com/bbs?.mm=FN&action=m&board=15784519…

[Bannerman]

Danke an dieser Stelle an V.Mac wegen ausgesetztem Handel von COVD ADR. War mir noch nicht aufgefallen, da ich noch nicht versucht habe, bei diesen Preisen zu verkaufen.

Da die oben aufgeführten Charts aus Amerika nicht mehr funktionieren, habe ich mich nach einem anderen umgeschaut.
Hoffentlich funzt er: Covd.otc.bb (in $) 1day



Quelle:http://www.datek.com/popinframe.html?osymb=NASDAQ&symb=covd&…

Die Preise werden derzeit wohl von Marketmakern gemacht, können also stärker schwanken.

[Bannerman]

Vielleicht mag es dem gebeutelten Covad-Aktionär in diesen Tagen als Trost dienen, daß eine Standard&Poors (S&P)-Seite für Covad einen
"Tangible Book Value" von 7,17 $ anzeigt.
Quelle:http://www.standardandpoors.com/QuoteBox/qbi.html?get=http:/…

Außerdem wurde für Juli immernoch ein Shortbestand von ca. 21 Millionen (der 174 Millionen) Aktien angezeigt.Freilich könnte der durch das Delisting eingesetzte Kursrutsch dazu geführt haben, das Shortpositionen abgebaut wurden.

Quelle:http://www.nasdaqtrader.com/asp/short_interest_resp.asp?symb…

Ob diese Informationen verläßlich sind, kann ich natürlich nicht garantieren, daß bleibt jedem selbst überlassen.

Ich warte jedenfalls erstmal ab, wenn sie überleben sollten, wird sich hoffentlich auch der Aktienpreis wieder normalisieren.

[Bannerman]

Sehr gute Neuigkeiten scheinen das zu sein: Überleben gesichert?

Quelle:http://quote.bloomberg.com/fgcgi.cgi?T=marketsquote99_news.h…

Covad in Negotiations With Bondholders to Retire $1.4 Billion in Debt

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 7, 2001--

Company Anticipates Becoming Debt-Free by January 2002 And

Reducing Cash Requirement to $200 Million

Business Operations, DSL Network and Customer Services

Will Continue Unaffected

Covad Communications Group, Inc. (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced it is in negotiations with its bondholders to eliminate the company`s approximately $1.4 billion of existing debt. Bondholders representing a majority of the outstanding accreted value of the bonds have agreed to terms of a proposed debt restructuring, and have signed lock-ups or given their verbal agreement pending review and approval of the documentation by their counsel.

Under the terms of the proposed restructuring, the bondholders would exchange their bonds for a combination of cash and preferred stock. The cash portion consists of $0.19 on the dollar for the face amount of the accreted value of both high-yield and convertible bonds. In addition, the company expects to return all of the approximately $26.5 million in restricted cash reserved to the holders of Covad`s 12.5 percent bonds.

The preferred equity would have a $100 million liquidation preference and would be convertible into approximately 33 million common shares. This represents approximately 15 percent of the company`s fully diluted currently outstanding common stock after giving pro forma effect to the conversion. Upon securing additional funding, and subject to certain terms and conditions, the company will have the right to convert the preferred stock. The preferred stock would also be convertible at any time at the preferred holders` option into the same amount of common.

When the transaction closes, Covad expects to pay a total of $283.3 million to the bondholders. After the pay out, on a pro-forma basis as of June 30, 2001, Covad will have approximately $250 million in cash, which is expected to fund the company`s operations into the beginning of 2002.

"Covad will be in a much stronger financial position going forward, with no debt and a much smaller cash requirement, if this transaction is successful," said Charles E. Hoffman, Covad`s president and CEO. "With the growth in our revenue and continued reduction of costs -- all which put us on a faster track to profitability -- we expect to be in a much better position to raise the additional funding we need."

"We believe this transaction to be in the best interests of our bondholders and shareholders," said Chuck McMinn, chairman of Covad. "If successful, it will free Covad from approximately $1.4 billion in debt which we believe will make it easier to raise additional capital to continue our operations. We now believe that once this transaction with Covad bondholders is completed, we will need approximately $200 million more in cash to get us to a positive cash flow position, which we expect will be by the third quarter of 2003."

"This is a winning scenario for all parties," stated Hoffman. "At its conclusion, bondholders and shareholders both will have an opportunity to share in Covad`s continued success."

Covad expects that the transaction would be implemented through a voluntary pre-negotiated Chapter 11 filing by its parent company, Covad Communications Group, Inc. Covad Communications Group, Inc.`s operating companies, which provide DSL services to customers, are not expected to be included in the court-supervised proceeding and will continue to operate in the ordinary course of business without any court imposed restrictions. Covad believes that the filing, which is customary with such debt restructurings, would facilitate in the expeditious elimination of the company`s approximately $1.4 billion debt.

"Speakeasy applauds this action by Covad and as a long term customer we offer our continued support and congratulations," said Mike Apgar, CEO of Speakeasy.net. "Covad has taken the critical first step to secure their place as the nation`s most reliable and respected DSL provider. This is a victory for customer choice in high-quality broadband services."

Covad Communications Group, Inc.`s operating companies should continue unaffected during the court-supervised proceedings and upon emergence from the restructuring. Covad expects to continue to deliver services, manage the network and conduct day-to-day business outside of the court-supervised proceeding. Covad believes that it will be able to continue with its current operations and business plan while supporting its employees, over 330,000 end users, sales support, Covad`s national network, the installation process and vendors including network and equipment suppliers.

"This is very positive for Covad and we are pleased to hear that the financial issues are in the process of being resolved so as to move the company toward long-term success," said Harry M. Taxin, president and CEO of MegaPath Networks. "The industry needs a strong, independent data CLEC provider, and this news will help the DSL industry continue its rapid growth by ensuring that the supply chain is viable and stable."

Covad Communications Group, Inc. plans to file a pre-negotiated plan of reorganization and voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code by mid-August 2001. The Covad Communication Group, Inc. plan of reorganization, which would establish the company`s capital structure upon emergence from the reorganization, will be subject to court approval after it has been voted on by the bondholders and certain other interests affected by the plan. Upon approval of the plan, Covad Communications Group, Inc. would emerge with the retirement of all of the bond debt. Covad Communications Group, Inc. expects this process to be complete by January 2002.

"Covad is the nation`s most experienced, established company providing DSL and we will continue to provide the best quality broadband services to small businesses and residential customers," said Hoffman. "Demand for DSL is strong and we are the only provider with a national network that can scale to meet this demand. We believe that we will continue to meet our customers` expectations of service, support and reliable operation of our national network.

"Covad employees can rest assured that this action will be taken as part of Covad`s plan to revitalize the company which will further secure the company`s future," added Hoffman. "Management realizes that a major part of Covad`s success is dependent on the strength and talents of our employees."

About Covad Communications

Covad is the leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, IP and dial-up services through Internet Service Providers, telecommunications carriers, enterprises, affinity groups, PC OEMs and ASPs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 94 of the top Metropolitan Statistical Areas (MSAs). Covad`s network currently covers more than 40 million homes and business and reaches approximately 40 to 45 percent of all US homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95054. Telephone: 1-800/GO-COVAD. Web Site: www.covad.com.

[Bannerman]

Was mir nicht besonders gefällt ist, daß sie ein
"pre-negotiated volutary chapter 11 filing" planen.

Außerdem zahlen sie Geld an die Bondholders zurück, so daß sie nur noch Reserven bis Januar 2002 statt juli 2002 haben.

Hoffentlich geht ihr Plan auf, daß sie ohne die 1,4 Mrd $ Schulden leichter Investoren finden.

Befreien sie sich dann von den Zinszahlungen für 1,4 Mrd $?
Angeblich brauchen sie dann nur noch 200 Millionen $ bis zum break-even. Mal schauen, was die Aktie heute macht.

Auf jeden Fall hat der neue CEO sich zum erstenmal zu Wort gemeldet und das unselige Schweigen gebrochen.

Vielleicht haben sie ja schon Pläne im Hinterkopf (spekulation)

[Bannerman]

Covad steigt gerade wie die Hölle...
War wohl ne gute Nachricht.

[Bannerman]

Vor dem Deal würde die Differenz des Geldes von Januar bis Juli reichen. Nach dem Deal wären sie schuldenfrei, und sie würden mit ca. 200 Millionen $ bis zum breakeven auskommen.
Das ist IMHO ein Supergeschäft.

The strange case of telecoms groups paying off their debts
By Peter Thal Larsen and Stephanie Kirchgaessner in New York
Published: August 7 2001 18:55GMT | Last Updated: August 7 2001 19:06GMT
Quelle:

Something odd is happening in the US telecoms sector. Struggling start-up operators are using their precious cash reserves to pay off their debts.

On Tuesday Covad Communications, a provider of high speed internet access systems, announced that it was in negotiations with bondholders to cancel its entire debt.

Covad is getting a bargain: by offering bondholders a cash payment of $283m and some new shares, it is retiring debt with a face value of $1.4bn.

However, the deal will use up about half of Covad`s cash reserves, leaving it with just $250m. As a result, the company will now have to raise another $200m to fund its operations until it becomes profitable.

Raising that cash will be hard. The public markets for debt and equity are effectively closed to telecoms start-ups as investors nurse huge losses on their investments.

With a few exceptions, private equity investors are also wary of dabbling in an industry which is plagued by huge overcapacity.

Yet Covad is not alone. Last week XO Communications, another struggling telecoms operator, started buying back its bonds in the market. The company is thought to be preparing to spend about $250m to retire debts worth around $800m. Level 3, the long-distance fibre provider, has announced similar plans.

Companies generally buy back debt when they have spare cash. But in the telecoms sector this is hardly the case.

Analysts calculate that XO will need another $1.1bn in funding before it achieves profitability in 2004. While buying back debt may reduce future interest charges, it will ultimately increase the company`s funding gap.

Bo Fifer, an analyst at Deutsche Banc Alex Brown, calculates that if XO is paying $250m for debt worth $800m at face value, the company is saving $180m in interest payments over two years. This puts XO in a net $70m worse funding position.

"It`s only smart when you are fully funded," he says. "If you are under-funded, you have got to sit on that cash like it is gold."

Others see the buyback as a last-ditch bid to stave off bankruptcy. "The real question is whether these companies can restructure their balance sheets without eliminating shareholder equity," says Mark Kastan, an analyst at Credit Suisse First Boston.

In some cases, telecoms operators may not have any choice. Last week a bondholder in Mpower Communications sued the internet and telephone service provider in an attempt to declare it insolvent.

The lawsuit, which Mpower has rejected as baseless, is the latest example of bondholders pressuring companies they believe have no future to pay out their remaining cash rather than hanging on until the money runs out.

Yet it seems that companies such as Covad and XO have other plans. Covad is understood to be in negotiations with investors to raise the $200m it needs to see it through to profitability.

Meanwhile, Wall Street observers believe XO`s current backers, which include the telecoms entrepreneur Craig McCaw, will not allow the company to fail. This view is not shared by bondholders, who are currently trading XO debt at about 40 per cent of its face value. But if XO was to announce extra financing, the price of the debt would rise - increasing the cost to XO of paying it off.

"If they really believe they can raise some other money, then it makes sense to buy back the bonds when everyone thinks they might go bust," says one investment banker. "But it`s a high-risk strategy."" target="_blank" rel="nofollow ugc noopener">http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3O6T814QC&live=true&tagid=ZZZPCGI2B0C&subheading=telecoms


Something odd is happening in the US telecoms sector. Struggling start-up operators are using their precious cash reserves to pay off their debts.

On Tuesday Covad Communications, a provider of high speed internet access systems, announced that it was in negotiations with bondholders to cancel its entire debt.

Covad is getting a bargain: by offering bondholders a cash payment of $283m and some new shares, it is retiring debt with a face value of $1.4bn.

However, the deal will use up about half of Covad`s cash reserves, leaving it with just $250m. As a result, the company will now have to raise another $200m to fund its operations until it becomes profitable.

Raising that cash will be hard. The public markets for debt and equity are effectively closed to telecoms start-ups as investors nurse huge losses on their investments.

With a few exceptions, private equity investors are also wary of dabbling in an industry which is plagued by huge overcapacity.

Yet Covad is not alone. Last week XO Communications, another struggling telecoms operator, started buying back its bonds in the market. The company is thought to be preparing to spend about $250m to retire debts worth around $800m. Level 3, the long-distance fibre provider, has announced similar plans.

Companies generally buy back debt when they have spare cash. But in the telecoms sector this is hardly the case.

Analysts calculate that XO will need another $1.1bn in funding before it achieves profitability in 2004. While buying back debt may reduce future interest charges, it will ultimately increase the company`s funding gap.

Bo Fifer, an analyst at Deutsche Banc Alex Brown, calculates that if XO is paying $250m for debt worth $800m at face value, the company is saving $180m in interest payments over two years. This puts XO in a net $70m worse funding position.

"It`s only smart when you are fully funded," he says. "If you are under-funded, you have got to sit on that cash like it is gold."

Others see the buyback as a last-ditch bid to stave off bankruptcy. "The real question is whether these companies can restructure their balance sheets without eliminating shareholder equity," says Mark Kastan, an analyst at Credit Suisse First Boston.

In some cases, telecoms operators may not have any choice. Last week a bondholder in Mpower Communications sued the internet and telephone service provider in an attempt to declare it insolvent.

The lawsuit, which Mpower has rejected as baseless, is the latest example of bondholders pressuring companies they believe have no future to pay out their remaining cash rather than hanging on until the money runs out.

Yet it seems that companies such as Covad and XO have other plans. Covad is understood to be in negotiations with investors to raise the $200m it needs to see it through to profitability.

Meanwhile, Wall Street observers believe XO`s current backers, which include the telecoms entrepreneur Craig McCaw, will not allow the company to fail. This view is not shared by bondholders, who are currently trading XO debt at about 40 per cent of its face value. But if XO was to announce extra financing, the price of the debt would rise - increasing the cost to XO of paying it off.

"If they really believe they can raise some other money, then it makes sense to buy back the bonds when everyone thinks they might go bust," says one investment banker. "But it`s a high-risk strategy."" target="_blank" rel="nofollow ugc noopener">
Others see the buyback as a last-ditch bid to stave off bankruptcy. "The real question is whether these companies can restructure their balance sheets without eliminating shareholder equity," says Mark Kastan, an analyst at Credit Suisse First Boston.

In some cases, telecoms operators may not have any choice. Last week a bondholder in Mpower Communications sued the internet and telephone service provider in an attempt to declare it insolvent.

The lawsuit, which Mpower has rejected as baseless, is the latest example of bondholders pressuring companies they believe have no future to pay out their remaining cash rather than hanging on until the money runs out.

Yet it seems that companies such as Covad and XO have other plans. Covad is understood to be in negotiations with investors to raise the $200m it needs to see it through to profitability.

Meanwhile, Wall Street observers believe XO`s current backers, which include the telecoms entrepreneur Craig McCaw, will not allow the company to fail. This view is not shared by bondholders, who are currently trading XO debt at about 40 per cent of its face value. But if XO was to announce extra financing, the price of the debt would rise - increasing the cost to XO of paying it off.

"If they really believe they can raise some other money, then it makes sense to buy back the bonds when everyone thinks they might go bust," says one investment banker. "But it`s a high-risk strategy."" target="_blank" rel="nofollow ugc noopener">http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3O6T814QC&live=true&tagid=ZZZPCGI2B0C&subheading=telecoms


Something odd is happening in the US telecoms sector. Struggling start-up operators are using their precious cash reserves to pay off their debts.

On Tuesday Covad Communications, a provider of high speed internet access systems, announced that it was in negotiations with bondholders to cancel its entire debt.

Covad is getting a bargain: by offering bondholders a cash payment of $283m and some new shares, it is retiring debt with a face value of $1.4bn.

However, the deal will use up about half of Covad`s cash reserves, leaving it with just $250m. As a result, the company will now have to raise another $200m to fund its operations until it becomes profitable.

Raising that cash will be hard. The public markets for debt and equity are effectively closed to telecoms start-ups as investors nurse huge losses on their investments.

With a few exceptions, private equity investors are also wary of dabbling in an industry which is plagued by huge overcapacity.

Yet Covad is not alone. Last week XO Communications, another struggling telecoms operator, started buying back its bonds in the market. The company is thought to be preparing to spend about $250m to retire debts worth around $800m. Level 3, the long-distance fibre provider, has announced similar plans.

Companies generally buy back debt when they have spare cash. But in the telecoms sector this is hardly the case.

Analysts calculate that XO will need another $1.1bn in funding before it achieves profitability in 2004. While buying back debt may reduce future interest charges, it will ultimately increase the company`s funding gap.

Bo Fifer, an analyst at Deutsche Banc Alex Brown, calculates that if XO is paying $250m for debt worth $800m at face value, the company is saving $180m in interest payments over two years. This puts XO in a net $70m worse funding position.

"It`s only smart when you are fully funded," he says. "If you are under-funded, you have got to sit on that cash like it is gold."

Others see the buyback as a last-ditch bid to stave off bankruptcy. "The real question is whether these companies can restructure their balance sheets without eliminating shareholder equity," says Mark Kastan, an analyst at Credit Suisse First Boston.

In some cases, telecoms operators may not have any choice. Last week a bondholder in Mpower Communications sued the internet and telephone service provider in an attempt to declare it insolvent.

The lawsuit, which Mpower has rejected as baseless, is the latest example of bondholders pressuring companies they believe have no future to pay out their remaining cash rather than hanging on until the money runs out.

Yet it seems that companies such as Covad and XO have other plans. Covad is understood to be in negotiations with investors to raise the $200m it needs to see it through to profitability.

Meanwhile, Wall Street observers believe XO`s current backers, which include the telecoms entrepreneur Craig McCaw, will not allow the company to fail. This view is not shared by bondholders, who are currently trading XO debt at about 40 per cent of its face value. But if XO was to announce extra financing, the price of the debt would rise - increasing the cost to XO of paying it off.

"If they really believe they can raise some other money, then it makes sense to buy back the bonds when everyone thinks they might go bust," says one investment banker. "But it`s a high-risk strategy."

[Bannerman]

Netter Artikel im Industry Standard zu Covad. Ist zwar schon viel bekannt, aber es gibt doch auch ein Statement vom neuen CEO zum Hintergrund des Bondholder-Deals.
Anscheinend wurde mit ihrer Angst taktiert, alles zu verlieren, und so erreicht, daß sie sich mit 19% ihrer Einlage in Cash begnügen. Der Neue, Hoffman, scheint ein ganz tougher Hund zu sein in Verhandlungen.

Covad`s One Last Shot (4 Seiten)
Quelle:http://www.thestandard.com/article/0,1902,28602,00.html?body…

[Bannerman]

Artikel: Two DSL Carriers, two Chapter 11`s, two very different results

Quelle:http://industryclick.com/magnewsarticle.asp?newsarticleid=22…

Zu blöd, daß diese dämliche Aktie derzeit nicht gehandelt wird.

[Bannerman]

Artikel:North American DSL Market Now at 4.1 Million, According to TeleChoice; U.S. Market Reaches 3.3 Million, But Slows From First Quarter

08/13/01
PR Newswire

Quelle:http://cma.zdnet.com/texis/techinfobase/techinfobase/pdispla…

[Mamboking]

Covad Submits Chapter 11
Reorganization Petition to Eliminate
$1.4 Billion Debt; DSL Network and
Customers Remain Unaffected

Updated: Wednesday, August 15, 2001 09:40
PM ET
Email this article to a friend!
Printer-friendly version

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 15, 2001--Covad Communications Group, Inc. (OTCBB:
COVD), the parent company of Covad Communications Company, today announced that it has filed for
reorganization under Chapter 11 of the Federal bankruptcy code in the U.S. Bankruptcy Court for the
District of Delaware, as part of a voluntary, pre-negotiated plan to eliminate Covad`s $1.4 billion in debt. It
is expected that Covad`s DSL network and its customers will remain unaffected throughout the filing
period.

Holders of a majority of Covad`s bonds have agreed in writing to the terms of a debt repurchase that, if
approved by the court, would eliminate Covad`s bond debt. This filing is intended, through court approval,
to bind 100 percent of Covad`s bondholders to the transaction. Covad`s intention to implement this
transaction through reorganization under Chapter 11 was announced on August 7, 2001 and the company
expects this process to be complete and emerge by January 2002.

Covad`s operating subsidiaries, which provide DSL services to
customers, are not expected to be included in the court-supervised
proceeding and will continue to operate in the ordinary course of
business without any court imposed restrictions. Covad`s operating
subsidiaries plan to continue their current operations and business plan
while supporting their 1,700 employees, over 330,000 end users, sales
support, Covad`s national network, the installation process and vendors
outside of the court-supervised proceeding.

"This filing is a tool to eliminate Covad`s debt and significantly improve
our ability to raise the additional capital we need to get to profitability,"
said Charles E. Hoffman, Covad`s CEO. "Most importantly, this action
does not affect our operations, customers, network or employees. It is
business as usual for our broadband customers."

Shares of Covad Communications are expected to begin trading under the symbol COVDQ as a result of
this filing.

[Bannerman]

Zum Verlauf der Geschäfte. Chuck McMinn, Chairman of the Board sagt, daß Covad jeden Tag 700-800 Leitungen verkauft.

"[...]Still, Chuck McMinn, chairman of the board, expressed high hopes for the future of his company nd demand for broadband Internet services.

"The demand is out there in spades," he said of Covad`s services. "There are many more people who don`t have a broadband connection than do." He said that his company signs up between 700 and 800 lines each day. [...]"

Quelle:http://www.thestandard.com/article/0,1902,28724,00.html?part…

Aus dem Covad-chat bei Yahoo:
"
by: dontknowsquat06360
Msg: 139945 of 139987

700 to 800 a DAY !! Thats 45,500 to 52,000 a QTR.!! Times 4 qtrs. = 182,000 to 208,000 PLUS our 333,000 lines already, now were talking 515,000 to 541,000 in 4 QTRS. !! No Debt and these kind of numbers !!
"
Es wurde angeblich gesagt, daß bei 550.000 Leitungen der breakeven sein soll. Durch den letzten deal reicht das Geld jetzt allerdings nicht mehr bis Juli nächsten Jahres (4 qrts), sondern wohl nur bis Januar (2qrt). Außerdem hat Covad Investorrelation für 20.August angeblich Quartalszahlen angekündigt(G.Tornga).

Was jetzt noch fehlte wäre die Ankündigung einer weiteren Finanzierung von 200 Millionen $, um bis zum breakeven durchzuhalten.
Und natürlich will Microsoft Weihnachten die internetunterstützende XBox rausbringen, die mit einer Werbekampagne von 500 Millionen $ begleitet wird, und vielleicht auch den Bedarf nach DSL-Breitband antreiben könnte...

Alle Angaben ohne Gewähr, da ich ihren Wahrheitsgehalt nicht überprüfen kann.

[Bannerman]

Covad Communications Announces Second Quarter 2001 Results; Revenue Increases 22 Percent from Q1, 2001 to $87 Million, Loss from Operations Decreases by 19 Percent

Last Updated: 4:46 PM ET 8/20/2001

SANTA CLARA, Calif., Aug 20, 2001 (BUSINESS WIRE) -- Covad Communications Group, Inc. (COVD) announced its financial results for the second quarter of 2001.

Revenue for the quarter ended June 30, 2001 was $87.1 million, representing a 22 percent increase over revenue of $71.2 million for the quarter ended March 31, 2001 and a 101 percent increase over revenue of $43.2 million for the quarter ended June 30, 2000. Loss from operations for the quarter ended June 30, 2001 was $141.8 million, a 19 percent improvement from the first quarter loss from operations of $174.7 million.

Contributing to this loss for the second quarter was a restructuring charge of $2.9 million and a charge of $2.2 million relating to the write-down of goodwill associated with Covad`s BlueStar subsidiaries. Loss per share improved 12 percent to a loss of $1.01 in the second quarter of 2001 from a loss of $1.15 in the first quarter of 2001. This is a slight increase from the loss per share of $1.00 in the second quarter of 2000.

Revenue for the six months ended June 30, 2001 was $158.3 million, representing a 147 percent increase over revenue of $64.0 million for the same period of 2000. Loss from operations for the six months ended June 30, 2001 was $316.6 million, including $20.0 million in charges for restructuring and adjustments to the recorded value of long-lived assets, compared with a loss from operations of $271.0 million for the six months ended June 30, 2000.

"We continue to see improvement in our operating performance," said Charles McMinn, chairman of Covad. "This is yet another step on the path to profitability and helps demonstrate that Covad`s business model is delivering results."

Covad`s subscriber lines in service increased 4 percent to 333,000 lines, compared with 319,000 lines at March 31, 2001. This decrease in growth from the first quarter growth of 16 percent is reflective of Covad`s continuing work to manage the migration of lines from distressed partners and from the company`s BlueStar subsidiaries. Lines in service at the end of the second quarter of 2001 increased 141 percent from Covad`s subscriber lines in service of 138,000 at June 30, 2000.

During the second quarter of 2001, Covad restructured operations in its BlueStar subsidiaries through an assignment for the benefit of creditors. Covad expects this decision to potentially save the Company as much as $75 million over the next 12 months. As a result of this action, a deferred gain from the de-consolidation of these subsidiaries in the amount of $55.5 million has been recorded on Covad`s balance sheet as of June 30, 2001. Covad expects to recognize this amount as a one-time, extraordinary gain once the liquidation of BlueStar has been completed and all liabilities have been discharged.

In addition, Covad Communications Group, Inc. announced the filing of a petition for reorganization under Chapter 11 of the Federal bankruptcy code in the U.S. Bankruptcy Court for the District of Delaware, as part of a voluntary, pre-negotiated plan to eliminate Covad`s debt with a face amount of $1.4 billion. It is expected that Covad`s DSL network and its customers will remain unaffected throughout the petition period. Covad also recently reported signing a memorandum of understanding (MOU) with lead plaintiffs of a securities class action litigation pending in federal court in California that tentatively resolves this litigation.

Given the perceived uncertainties in the market place regarding the Company`s recent bankruptcy filing and the assignment for the benefit of creditors of its BlueStar subsidiaries, Covad expects little to no growth in revenues during the third quarter of 2001 in comparison to the second quarter of 2001. Covad does expect continued improvement in its loss from operations due to the restructuring of its BlueStar subsidiaries and continued efforts to control costs.

"We recently announced positive developments such as an agreement to eliminate our bond debt and the potential settlement of a class action lawsuit," stated Charles E. Hoffman, Covad`s president and CEO. "Completing these transactions will greatly strengthen the Company and improve our ability to obtain the additional $200 million that we need to become cash flow positive in the third quarter of 2003. Most importantly, they will help ensure that our customers will continue to experience high-speed, always-on broadband Internet connections on our network."

Quelle:http://www.datek.com/popinframe.html?osymb=NASDAQ&symb=covd&…

[Bannerman]

NEUE ADRESSE DES COVAD-CHATBOARDS BEI YAHOO

Leider hat Yahoo das alte Covad-Board deaktiviert. Wir treffen uns jetzt unter einer neuen Adresse in einem normalen Chatboard. Die Adresse ist:

http://clubs.yahoo.com/clubs/covadcommunicationsanddsl

Schaut doch mal herein.

[Bannerman]

Adresse unten.

V.Mac, bist Du noch investiert? Ich glaube, ich werde unsere Wette verlieren.

[Bannerman]

Vultures of the New Economy
Investors Are Buying Ailing Firms` Debt In Hopes of Cleaning Up on a Rebound
By Ian Springsteel
Special to The Washington Post
Sunday, September 9, 2001; Page H01
http://www.washingtonpost.com/wp-dyn/articles/A60963-2001Sep…

Through the spring and summer, broadband and telecommunications companies such as Teligent Inc., Rhythms Communications, PSINet Inc. and NorthPoint Communications Group Inc. filed for bankruptcy, one after the other. Worse, prices for their networks and services collapsed, leaving investors who held their bonds, let alone their stocks, with little or no value. The broadband bust was in full swing.

Watching this, Chuck McMinn had his fingers crossed. The chairman of Santa Clara, Calif.-based Covad Communications Group Inc., a provider of high-speed Internet access via digital subscriber line, figured his company could weather the slowing economy and the pressure from anxious investors until the middle of next year, when the company`s approximately $530 million in cash would run out. By then, he hoped, the shakeout would be over and Covad could raise new funds to see it through to steady profits.

Investors in Covad`s bonds weren`t so optimistic. The initial buyers of Covad`s $1.4 billion in junk bonds had largely sold off their holdings at steep losses. By July, the bonds traded at 10 to 15 cents per dollar of their original value. The company was still losing money, and the market for broadband Internet access had slowed dramatically. Despite Covad`s cash on hand, many expected the firm to fail.

Then opportunity knocked. Several hedge funds that had bought some of Covad`s bonds met with McMinn and other executives at Covad`s offices in mid-July, urging them to cut a deal: File for bankruptcy; pay us back a fraction of what the bonds are worth, in cash and preferred stock; and Covad can walk away debt-free.

All over the country, "vultures" are spotting struggling firms such as Covad and snapping up their debt. Like the bird of prey they`ve been named for, these investors clean up debris -- in this case the leavings from the latest boom-and-bust economic cycle. The vultures` hedge funds -- vulture funds, of course -- specialize in distressed debt, meaning bonds and loans that are trading at a steep discount to their original value.

Vulture funds have been around for years, often formed -- by insurance companies, mutual funds, highflying tycoons, investment banks and the like -- specifically to buy distressed debt and underpriced assets during recessions with the hope of making a bundle when the economy rebounds. The current slowdown is no different.

With poor returns in stocks, which continue to plunge, the distressed-debt market has blossomed this year, welcoming a host of opportunistic players, including investment banks such as Goldman Sachs Group Inc. and Credit Suisse First Boston, empire-building tycoons of the likes of Warren Buffett and Philip Anschutz, and a wide range of hedge funds, backed with money from pension funds, insurers and the super-wealthy.

The allure for these investors is that they can buy the debts of telecommunications, financial and other struggling companies at a steep discount, aiming to make returns of 30 percent or better per year as the economy improves.

An Appealing Deal


The deal for companies -- like Covad -- can also be attractive. Far from fearing the prospect of tangling with vultures, "I was personally excited about the opportunity," McMinn said. "I felt that this was a very savvy thing to do. The bondholders had recognized the value of the company and wanted to work out an agreement that was mutually beneficial."

Several rounds of negotiations with the bondholders, which sources say included distressed-debt funds Oaktree Capital Management, based in Los Angeles, and New York-based Fir Tree Partners, were "very tough," McMinn said. But eventually an agreement took shape: Covad would pay out 19 cents on the dollar for the bonds, plus about 15 percent of the company`s equity in preferred stock. At a cost of only $283 million, Covad would retire all of its $1.4 billion in debt and would still hold $250 million, enough to operate into early 2002.

"At the end of the day, we knew and they knew that this was a good deal for everyone," McMinn said.

After gathering the support of a majority of bondholders for the plan, Covad filed for Chapter 11 bankruptcy protection on Aug. 15. The company hopes the bankruptcy court will approve the deal, applying it to all bondholders.

Cutting Losses


The flood of vulture-fund money is playing a crucial role in keeping the current economic slowdown from worsening. By providing a ready market for banks, insurers, and loan and bond funds to shed troubled debts, vulture investors are helping initial investors cut their losses and recycle capital back to healthy companies.

In all, approximately $40 billion is currently dedicated to buying distressed company bonds and bank loans, compared with about $25 billion just 18 months ago, according to estimates by Edward Altman, a professor at New York University`s Stern School of Business. Plus, less-specialized hedge funds hold about $40 billion to $60 billion, ready and available for distress investments; in fact, the funds have raised $4 billion in the first six months of this year for that purpose, according to hedge-fund tracker Tremont Tass Ltd.

Banks and insurers are not struggling the way they did in the early 1990s, when the numerous bankruptcies from real estate and leveraged-buyout excesses weakened the banking system. Nonetheless, the distressed-debt market is helping them clean out their balance sheets and limit their loan-loss reserves.

But conditions could turn less rosy. Some investors expect that additional business failures and debt defaults will cause the supply of distressed debts to overwhelm the demand.

There is currently an estimated $600 billion worth of distressed and defaulted bonds and bank loans for sale at an average of 60 cents on the dollar. Yet, defaults and bankruptcies are not expected to peak until early next year, according to Moody`s Investors Service and the American Bankruptcy Institute.

"Eventually, I expect the amount available for sale will overwhelm the market," said Marc Lasry, managing partner of Avenue Group, a $1 billion distressed-investment fund. When that happens, Lasry and other buyers say, investors will focus on only the best companies available, while loan prices of less promising firms will fall sharply.

NYU`s Altman isn`t so sure that this is how things will go. "That view has some merit," he said, "but the counterargument is that [bankers] wake up and say `Why sell?` "

"Banks may just hold debt because they can," due to their strong earnings, he said.

Nonetheless, Altman and investors alike sound a note of caution: There remains a chance that some structured loan and bond funds, known as collateralized debt obligations, which currently hold $300 billion in loans and bonds, could unravel.

"If things get worse," Altman said, these funds "may be triggered into liquidity mode and forced to sell their holdings."

The market for distressed and bankrupt loans is a secretive world, especially compared with securities trading, where regulators demand a certain amount of transparency. Buyers and sellers trade loans and bonds among themselves directly, rather than on an exchange or through a central market. No reporting is required of specific sales.

A few analysts and trading desks publicize limited information about how they handle the debts of larger companies. But most participants refuse to say how much of a loan has been bought or sold, to whom or at what price. But several do say that the pace of activity has quickened in recent months.

"In the first quarter, many investors were still nervous, as many were not convinced the market had reached its nadir. Now that they are seeing some economic stability, fund flows to distressed-asset funds have increased significantly," said Nicola Meaden, chief executive of Tremont Tass, based in London.

"Right now there is a lot of product to choose from, and the market is increasingly liquid. That`s good for us, and good for the banks and mutual funds that want to sell distressed assets," said Brian Schinderle, co-head of the $900 million Special Investment Group for PPM America, the U.S. division of Britain`s Prudential Portfolio Management, a division of London-based Prudential Insurance Ltd.

"Interest in distressed bank loans, and pricing in the market, improved substantially in the second quarter and remains strong," said Paul Hogan, chief risk officer of Fleet Financial Group, the Boston-based bank group. Fleet sold $100 million in troubled loans between April and June, in addition to $225 million that it sold late last year.

For banks, this interest has meant that they are not necessarily stuck when borrowers do not repay loans. For instance, Bank of America sold $800 million of bad loans in the first half of the year, enabling the bank to keep its percentage of problem loans down, at about 1.63 percent.

`Good for the Banks`


Banks sold about $2.6 billion in commercial loans in the first half of the year. That has kept the growth in nonperforming loans to about 1 percent. Without these sales, nonperforming loans would have risen by about 12 percent to 14 percent, according to a Goldman Sachs analysis.

"The ability to sell problem loans is good for the banks for many reasons," said David Gibbons, deputy comptroller for credit risk at the Federal Reserve`s Office of the Comptroller of the Currency.

"Not only does it help them recoup funds to put to work elsewhere, but the active trading of loans helps banks to understand what others see as the true risks and rewards of various loans."

Banks and bondholders, of course, take a loss, since they never get the full amount they lent out. But they sell at a discount because they have concluded that there is little chance the borrowers will pay up or because it will take too much effort to get their money back. It is easier for them to cut their losses by selling the debt, and the risk, to others.

In turn, investors in distressed debt gamble that they can get their money back. And because they paid less than full price for the loan, they have to recover only a fraction of the original loan to make money.

For instance, when there were indications late last year that Finova Group, a major financing company, would default on its bank loans and bonds, numerous banks sold the Finova loans they were holding. The loans traded at a low of 63 cents on the dollar last December. Major vulture funds, including Oaktree, New York-based Angelo Gordon and Cerberus Capital and PPM`s Special Investments Group in Chicago, bought the debt, as did a variety of hedge funds that do not specialize in distressed debt.

After a joint venture between Buffett`s Berkshire Hathaway Corp. and Leucadia National Corp. battled with General Electric Co. for control of Finova, the value of the bank debt and bonds rose. The winning bid by Buffett`s group gave bank debt and bondholders 70 cents cash on the dollar and 30 cents in new bonds. That means most of the distressed investors won big.

Facing the Pressure


In situations similar to Covad`s, companies not in default are being pressured by distressed investors to use cash on hand to buy back their bonds, instead of using it to fund their operations, or face lawsuits. Investors assert that directors and management have a fiduciary responsibility to repay bondholders with cash on hand, if they think the company is going to fail.

In the case of Covad, chief executive McMinn said no legal threats were made, but he added that the Covad board was aware of the legal thinking among bondholders.

Some companies would rather fight than negotiate. Mpower Communications Corp., a Pittsford, N.Y.-based telecommunications services firm, for example, ignored overtures from Fir Tree Partners to cut a deal, and last month he was named in a civil suit by Fir Tree, asking the court to declare Mpower insolvent. This would then force the company to pay bondholders back with its cash on hand. Fir Tree holds $70 million of the company`s $467 million in bonds.

Almost immediately, Mpower countersued for defamation and claimed business interference.

Other companies are taking matters into their own hands. Primus Telecommunications of McLean, for instance, secretly used a Wall Street investment bank to beat distress investors at their own game. Between April and July, the company spent $88 million to snap up $386 million of its $1.12 billion in outstanding bonds, or 23 cents on the dollar.

"We knew we would eventually have to repay those bonds at par. By retiring them at a discount, we`ve improved our cash flow and our balance sheet," said Primus spokesman Jordan Darrow.

"Our goal is to become financially self-sufficient by next year," said Darrow, who acknowledges that the company still has only enough funds to operate until the first quarter of next year. With far less debt, though, the company "is in a far better position to raise new funds next year."

Jack Williams, a law professor and scholar in residence at the American Bankruptcy Institute, fears that banks are quicker than they have been to turn their backs on long-term business customers, selling their loans and leaving their customers as prey for vulture investors. And because the vultures do not have long-term relationships with the borrowers, the vultures may force bankruptcies and asset sales too quickly.

"It`s likely that more people and more companies will be considerably harmed in this downturn, as many will not receive the kind of accommodation they need [from] their lenders to keep going until the economy improves," he said.

But Barry Ridings, co-head of the restructuring group at investment bank Lazard Freres & Co., which handled recent restructuring negotiations for Rhythms Communications and Vlasic Foods International, among others, said: "I would rather deal with a [distressed-debt] investor who paid 50 cents on the dollar than a dozen bankers who all made the original loan. The bankers signed onto the original business plan that failed, and they want their money back."

[V.Mac]

Servas, Bannermann !

Ich bin (zwangsläufig, da ja zur Zeit in D nicht handelbar) schon noch dabei.
Momentan bin ich am Abwägen, ob es sich tatsächlich gut ausgeht und die Firma den Tournaround schafft, ob das "Cash" ausreicht und ob das mit dem "bankrupty filing" so hinhaut.

Deshalb beabsichtige ich, ein letztes Mal noch zu investieren. Mein Kauf/Kursziel liegt bei rund 50 US-Cents.

Meine Hoffnung sagt mir einfach: ( wie ich ja schon öfter betont habe ex oder hopp ) Die Firma wird es schaffen, sooo klein snd sie ja nicht, die Wachstumsraten haben sie auch und wenn der Retrukturierungsplan wirklich hinhaut, na dann haben wir , zumindest aus meiner Sicht, locker einen Verfünf-Facher im Depot. Nach erfolgter Umstrukturierung und Schuldenabbau sollten Kurse um 2 - 5 USD leich wieder möglich sein.
Na und wenn nicht, dann habe ich wenigstens wieder mal einen langen Leidensweg zum (unrühmlichen) Ende gebracht. Auf diesem Niveau noch mal 3000 St nachzukaufen hat halt den Effekt, daß entweder rund DM 3000 mehr den Bach runter sind oder aber daß sich das Investment langfristig doch mit einem Vielfachen des Einsatzes auszahlt.
Da in den USA nach wie vor relativ hohe Umsätze, obwohl OTC - Wert, stattfinden, behaupte ich einfach mal, daß es noch mehr Leute gibt, die diesen Wert noch nicht ganz abgeschrieben haben und eventuell meine Meinung teilen.

Tja, mein guter Bannermann nur mal zur Erinnerung:

#27 von Bannerman 10.02.01 04:37:36 2881867 COVAD COMM. GRP DL-001

Hi V.Mac!!!

Gibts Dich auch noch!
Ich glaube,wir sollten uns nichts vormachen, der Kurs wird in Amiland gemacht. Weißt Du sicherlich, bist schon länger dabei. Ich würde gern eine Wette abschließen: ab 1.10. ist der Kurs 25 Euro. Falls er darunter bleibt, schicke ich Dir eine Kiste Becks. Ansonsten viceversa.

Bannerman

Antwort:


#29 von V.Mac 12.02.01 21:31:06 2893071 COVAD COMM. GRP DL-001

Na das ist mir aber ne Freude !

Mein Lieblingsbier ! Woher weisst du das? Wo soll ich es denn abholen ?
Auf der anderen Seite : 1.10. lässt natürlich Spielraum. Könnte ja auch 2005 sein.

Bezüglich Kursrückgang bei COVD hast du (leider ) auch recht, COVD hat immerhin bisher schon über 90 % verloren.

Da bleibt nicht mehr viel Luft, aber kurzfristig sind auf jeden Fall, je nach Zahlen, auch noch mal 50 % minus locker drin.

Also bis 1.10.2001 sehe ich eher die 10 Euro / Dollar-Marke als Ziel. Wäre ja vom jetztigen Kurs immer noch ne Verdreifachung (rund) und damit nicht schlecht und ich aus meinen Miesen.

Bis bald

V.Mac

---------------------------------------------

Was die Zeit so bringt. auf jeden fall trinke ich gerade wieder mal ein Becks und mache jetzt Schluß, da ich im ZDF The Big Easy anschauen will.

Grüße

V.Mac

[Bannerman]

Hi V.Mac!

Hast Du ein Depot in Amerika, daß Du noch Covad bekommst?
Oder gibt es noch eine andere Möglichkeit, sie in Deutschland zu kaufen?

Am 25.09. ist jedenfalls wohl die Gerichtsverhandlung zur Konkurseröffnung. Wäre unlogisch, wenn sie bis dahin eine Finanzierung bekommen. Wie sollten sie sonst Konkurs anmelden, wenn sie neues Geld haben. Danach fängt allerdings die Zeit zu laufen an, da das Geld jetzt nur noch bis Januar und nicht bis nächsten Juli reichen würde.

Weiß nicht, ob jemand jetzt noch dazu bereit ist, in Internetinfrastruktur zu investieren. Glaube aber schon. Total nervig, daß jetzt hier nicht mehr gehandelt wird. Bestimmt eine Verschwörung!

Viel Glück für Dich!

[V.Mac]

@ bannermann

Nein, ich habe kein US-Depot. Aber du kannst doch ganz normal an der NASDAQ oder der NYSE oder auch wie COVD OTC kaufen, hier von Deutschland aus.

Ganz einfach Order mit der deutschen WP-Nr. und eben Börsenplatz in den USA aufgeben.

Habe ich mit anderen Werten schon gemacht und die sind dann trotzdem auch in D handelbar, wenns mal wieder Handel gibt.

Auf jeden Fall sollte man sich den von dir genannten Termin (25.9.01) mal vormerken.

V.Mac

PS: Aktuell Räumung der Frankfurter Börse

[V.Mac]

wieder mal Montag, wieder mal ZDF-Krimi

@ Bannermann, bist DU dnn noch da ?

Grüße

V.Mac

[Bannerman]

Hi V.Mac

Herzlichen Glückwunsch!

Natürlich bin ich noch da. Habe mal versucht, bei meiner Bank nachzukaufen. Die Hunde wollten aber nicht!

Bin dennoch zuversichtlich (auf lange Sicht).

[V.Mac]

@ Bannermann


also zuerst ein kleiner Stich:

in D ohne Kurs, in USA bei 0,36 USD.
Leider lagen wir bei unserer Kurs - Vorhersage beide ziemlich daneben.

Aber: nix desto trotz muß ich auf dein Wohl bald einen K20 Becks trinken.

Gib mir mal Bescheid, wie und wo wir das regeln können, zur Not ne Mail an mein W-O-Postfach.

[V.Mac]

ein bisschen ärgerlich ist es schon, daß mein limit in den usa um eine cent nicht erreicht wurde und jetzt innerhalb von 2 tagen das gute stück fast ne verdoppelung hingelegt hat.

V.Mac

[Bannerman]

Wie es ausschaut, ist die lang erwartete Rettung (Finanzierung) eingetroffen. Dank an das Ami-Covad-Board.
V-Mac, die Wette ist nicht vergessen. Werde Dir demnächst per Boardmail meine Email-Adresse schicken. Grüße, Bannerman


PALO ALTO, Calif., (Reuters) - Covad Communications Group Inc , the Internet service provider that filed for Chapter 11 bankruptcy protection in August, will announce later on Tuesday that it has secured $150 million in loans and other financing from SBC Communications Inc , the local phone company that sells its service.

Covad`s Chief Executive Charles Hoffman said in an interview that the new cash, combined with the forgiveness of debt and some draconian cuts in expenses, should carry the company through to a point when it will be cash flow positive, sometime in the second half of 2003.

Under the deal Covad will announce, SBC will provide a one-time payment of $75 million, a $50 million four-year loan, a $10 million fee in exchange for eliminating revenue commitments under a prior resale and marketing agreement, plus the elimination of a $15 million debt.

Covad, which has also negotiated the elimination of some $1.4 billion of debt through a bankruptcy deal that will pay bond holders 19 cents on the dollar, said it expects to exit bankruptcy later this year with a total of $305 million in cash, including the new money from SBC.

The company burned through some $233 million during the first quarter of this year alone, but cut that burn rate to an estimated $67 million in its third quarter. Hoffman said it will have a quarterly burn rate below $20 million a year from now.

Covad, which provides high-speed Internet access over digital subscriber, or DSL, phone lines, has rapidly grown its subscriber base in recent years. But it ran into financial trouble with a business model built on aggressive spending to expand into new markets.

During the quarter ended June 30, the company recorded a net loss of $175.5 million and said it had 333,000 customers.

As part of its bankruptcy reorganization, the company has dissolved some subsidiary operations and reduced its staff.

Despite all the financial difficulties, Hoffman said that demand for the service remained strong and he was confident the new money raised would keep it in business.

"There is always the risk of the economy, and of our competitors, but that is pretty much normal business risk," he said.

"There is still demand for this service. Anybody who needs to work from home or has teenagers who need to do homework over the Internet just find dial-up access too slow."

08:00 11-13-01

[Bannerman]

Fürs Logbuch: gestriger Schlußkurs (12.11.2001) war
0,87 $.

[Huckepack]

Hi Covad -trader heute 39 % plus !!

Wird das Papier bei uns nicht mehr gehandelt ??

( Hab noch jede Menge verstaubt im Deppo ..


Huck

[Bannerman]

Seit dem Nasdaq-Delisting wurde das glaube ich eingestellt. Allerdings hatte ich mir vorher noch ne Menge gekauft.
Nehme an, der Handel wird irgendwann demnächst wieder aufgenommen, spätestens beim Re-Listing.
Der letzte Handel war so bei 0,65 $, glaube ich.

Bei meiner Bank wars jedenfalls nicht möglich. Ich wollte bei 0,35 $ nachkaufen. Sobald ich das nötige Kleingeld habe, werde ich mein Depot bei diesen Unfähigen auflösen.

Bannerman

[V.Mac]

Hallo, Bannermann !

Kaum gehts mal wieder richtig aufwärts, sieht (liest) man dich auch mal wieder.

Meine ernsten Zweifel am Überleben von COVD sind momentan erst mal beiseite gewischt.

Ich gehe davon aus, daß bis zum Jahresende auf jeden Fall Kurse bis zu 2 USD erreichbar sind. (Ohne Wette) Damit dürfte nach erfolgreichem Abwickeln des Chapter 11 Filings auch einer Wiederaufnahme am NASDAQ nix mehr viel im Wege stehen, d.h. auch in D wirds wieder Handel geben.

Auf jeden Fall ists äächt ärgerlich, daß das mit dem Nachkauf im Oktober wegen ein paar Cents Geiz nix wurde. Wäre immerhin ein Verdreifacher. (Siehe mein Posting v. 14.10.01)

Es bleibt zu überlegen, ob man jetzt noch auf den Zug aufspringen sollte und mal ein Abstauberlimit um 1 USD in den Markt legen sollte.

Auf der anderen Seite darf man natürlich auch nicht vergessen, daß COVD ganz schön abmitionierte Ziel hat ( in etwa Verdoppelung der Abonennten in eineinhalb Jahren. ) Da muß die Wachstumsrate ganz schön gesteigert werden.

Außerdem sollen die Woche noch Zahlen kommen.

V.Mac

[esenata]

Hallo, ich grüße dich!
ich lese öfter deine mitteilungen und habe schon ewig diese covad com aktien im Depot!ich bin nun kein grosser anleger oder so und möchte dich trotzdem mal bitte mir etwas zu helfen!da ich jetzt einige wochen zu hause bin wollte ich mal dieses daytraiding versuchen!was für seiten muss ich denn aufrufen um mich mal zu informieren und was soll ich mit meinen covad-aktien machen? vielen Dank!!
ich weis nicht wie ich deine antwort lesen kann aber meine AOL adresse ist [e-mail]
danke

[Bannerman]

Covad Communications Announces Third Quarter 2001 Results
http://biz.yahoo.com/bw/011114/140493_1.html[/url}
Covad Improves Operational and Per Share Losses
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 14, 2001--Covad Communications, (OTCBB:COVD - news) announced its financial results for the third quarter of 2001.

Revenue for the quarter ended September 30, 2001 was $84.8 million, which is a 115 percent increase over the third quarter 2000 revenue of $39.5 million. Revenue for the quarter ended June 30, 2001, was $87.1 million. The decrease was attributable to the loss of approximately $6.4 million of revenues due to the shutdown of the company`s BlueStar subsidiary during the second quarter of 2001.

Covad had a 24 percent improvement in loss from operations quarter over quarter and a 53 percent improvement from the same quarter in 2000. For the quarter ended September 30, 2001 loss from operations was $108.1 million compared to the second quarter loss from operations of $141.8 million and the third quarter 2000 loss from operations of $229.0 million. Net loss of $139.7 million for the quarter ended September 30, 2001, was a 20 percent improvement from the second quarter of 2001 and a 43 percent improvement over the third quarter of 2000.

The decrease in net loss from the second quarter to the third quarter was driven by a 15 percent decrease in network and product costs and a 23 percent decrease in sales, marketing, general and administrative costs. Loss per share improved 22 percent to a loss of $0.79 in the third quarter of 2001 from a loss of $1.01 in the second quarter of 2001. This is a 50 percent decrease from the loss per share of $1.58 in the third quarter of 2000.

Revenue for the nine months ended September 30, 2001 was $243.1 million, representing a 135 percent increase over revenue of $103.5 million for the same period of 2000. Loss from operations for the nine months ended September 30, 2001 was $424.6 million, including $19.6 million in charges for restructuring and adjustments to the recorded value of long-lived assets, compared with a loss from operations of $500.0 million for the nine months ended September 30, 2000.

``Our business is strong enough that we were able to overcome many third quarter challenges, including closure of our BlueStar subsidiary, with only a slight reduction in revenue,`` said Charles E. Hoffman, CEO and president of Covad. `` We continue to lower our cash requirements and improve our results through effective cost control measures and operational efficiencies throughout our organization. We have introduced new products such as TeleSOHO, a product for the teleworker, and plan to introduce more services in the next few months. The focus on our cost controls and new products should help us build upon the successes of the first nine months of this year.``

Covad`s subscriber lines in service increased four percent to 346,000 lines, compared with 333,000 lines at June 30, 2001. Lines in service at the end of the third quarter of 2001 increased 69 percent from Covad`s subscriber lines in service of 205,000 at September 30, 2000.

On October 25, 2001, the US Bankruptcy Court for the District of Delaware entered an order approving the Disclosure Statement for Covad Communications Group, Inc. and the Bankruptcy Court also set December 13, 2001 as the date to consider confirmation of the reorganization plan.

Covad announced on November 13, 2001 that it secured additional funding, with a value of $150 million, through agreements with SBC Communications. This funding provides the cash needed to grow the company to cash flow positive by the second half of 2003. During the third quarter of 2001, Covad used less than $70 million in cash, down from approximately $112 million for the second quarter of 2001. The monthly average cash burn during the third quarter was less than $23 million. Including the cash reserved for the payment of claims to bondholders and other creditors as part of Covad`s pre-negotiated restructuring, Covad`s cash balance as of September 30, 2001 was $476.8 million.

Covad expects the fourth quarter to show limited to no growth in revenue with continued reductions in the loss from operations based on expected improvements in the overall cost structure of the business.

``We are making tremendous progress in our business in these difficult times, and we believe we have come a long way toward assuring the long term viability of Covad,`` stated Hoffman. ``Our expected emergence from the bankruptcy process in January 2002, our recent funding announcement, our new products and our continued focus on the customer in all we do should strengthen our position as the leading independent provider of broadband services.``

About Covad Communications

Covad is the leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, IP and dial-up services through Internet Service Providers, telecommunications carriers, enterprises, affinity groups and PC OEMs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 94 of the top Metropolitan Statistical Areas (MSAs). Covad`s network currently covers more than 40 million homes and business and reaches approximately 40 to 45 percent of all US homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95054. Telephone: 1-888-GO-COVAD." target="_blank" rel="nofollow ugc noopener">http://biz.yahoo.com/bw/011114/140493_1.html[/url}
Covad Improves Operational and Per Share Losses
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 14, 2001--Covad Communications, (OTCBB:COVD - news) announced its financial results for the third quarter of 2001.

Revenue for the quarter ended September 30, 2001 was $84.8 million, which is a 115 percent increase over the third quarter 2000 revenue of $39.5 million. Revenue for the quarter ended June 30, 2001, was $87.1 million. The decrease was attributable to the loss of approximately $6.4 million of revenues due to the shutdown of the company`s BlueStar subsidiary during the second quarter of 2001.

Covad had a 24 percent improvement in loss from operations quarter over quarter and a 53 percent improvement from the same quarter in 2000. For the quarter ended September 30, 2001 loss from operations was $108.1 million compared to the second quarter loss from operations of $141.8 million and the third quarter 2000 loss from operations of $229.0 million. Net loss of $139.7 million for the quarter ended September 30, 2001, was a 20 percent improvement from the second quarter of 2001 and a 43 percent improvement over the third quarter of 2000.

The decrease in net loss from the second quarter to the third quarter was driven by a 15 percent decrease in network and product costs and a 23 percent decrease in sales, marketing, general and administrative costs. Loss per share improved 22 percent to a loss of $0.79 in the third quarter of 2001 from a loss of $1.01 in the second quarter of 2001. This is a 50 percent decrease from the loss per share of $1.58 in the third quarter of 2000.

Revenue for the nine months ended September 30, 2001 was $243.1 million, representing a 135 percent increase over revenue of $103.5 million for the same period of 2000. Loss from operations for the nine months ended September 30, 2001 was $424.6 million, including $19.6 million in charges for restructuring and adjustments to the recorded value of long-lived assets, compared with a loss from operations of $500.0 million for the nine months ended September 30, 2000.

``Our business is strong enough that we were able to overcome many third quarter challenges, including closure of our BlueStar subsidiary, with only a slight reduction in revenue,`` said Charles E. Hoffman, CEO and president of Covad. `` We continue to lower our cash requirements and improve our results through effective cost control measures and operational efficiencies throughout our organization. We have introduced new products such as TeleSOHO, a product for the teleworker, and plan to introduce more services in the next few months. The focus on our cost controls and new products should help us build upon the successes of the first nine months of this year.``

Covad`s subscriber lines in service increased four percent to 346,000 lines, compared with 333,000 lines at June 30, 2001. Lines in service at the end of the third quarter of 2001 increased 69 percent from Covad`s subscriber lines in service of 205,000 at September 30, 2000.

On October 25, 2001, the US Bankruptcy Court for the District of Delaware entered an order approving the Disclosure Statement for Covad Communications Group, Inc. and the Bankruptcy Court also set December 13, 2001 as the date to consider confirmation of the reorganization plan.

Covad announced on November 13, 2001 that it secured additional funding, with a value of $150 million, through agreements with SBC Communications. This funding provides the cash needed to grow the company to cash flow positive by the second half of 2003. During the third quarter of 2001, Covad used less than $70 million in cash, down from approximately $112 million for the second quarter of 2001. The monthly average cash burn during the third quarter was less than $23 million. Including the cash reserved for the payment of claims to bondholders and other creditors as part of Covad`s pre-negotiated restructuring, Covad`s cash balance as of September 30, 2001 was $476.8 million.

Covad expects the fourth quarter to show limited to no growth in revenue with continued reductions in the loss from operations based on expected improvements in the overall cost structure of the business.

``We are making tremendous progress in our business in these difficult times, and we believe we have come a long way toward assuring the long term viability of Covad,`` stated Hoffman. ``Our expected emergence from the bankruptcy process in January 2002, our recent funding announcement, our new products and our continued focus on the customer in all we do should strengthen our position as the leading independent provider of broadband services.``

About Covad Communications

Covad is the leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, IP and dial-up services through Internet Service Providers, telecommunications carriers, enterprises, affinity groups and PC OEMs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 94 of the top Metropolitan Statistical Areas (MSAs). Covad`s network currently covers more than 40 million homes and business and reaches approximately 40 to 45 percent of all US homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95054. Telephone: 1-888-GO-COVAD.

[Bannerman]

Zur Situation der Internetanschlüsse in den USA. DSL-Anschlüsse zeigen größtes relatives Wachstum (13,9 %) aller Anschlußarten. Dial-up geht zurück. Kunden wechseln offensichtlich von Schmalband- zu Breitbandanschlüssen.

Quelle:http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=…

[Bannerman]

Chuck McMinn, Mitgründer und Aufsichtsratsvorsitzender
Covad Communications, Santa Clara

150 M $ infusion propels Covad
http://crn.channelsupersearch.com/news/CRN/31474.asp

[Bannerman]

Zusammenfassung der Geschehnisse letzte Woche bei COVAD.

Der Richter hat dem Restrukturierungsplan zugestimmt, nachdem sich 90% der Bondholder für diesen ausgesprochen hatten. Damit wird 1,4 Mrd. $ Schulden eliminiert gegen Zahlung von ca. 250 Millionen Dollar in bar und 15% am Unternehmen. Nach Abschluß dieses Planes behalten die bisherigen Aktionäre ca. 80% am Unternehmen.

Nächste Woche (am 20.12.) wird Covad aus dem Konkurs (Chapter 11) herauskommen. In einem Zeitungsinterview soll der CEO Hoffman bereits von einem Relisting an der NASDAQ frühzeitig im nächsten Jahr gesprochen haben (dafür ist ein Preis von mind. 4 $ pro Aktie erforderlich). Auch sei bald mit der Ankündigung bedeutender Aufträge aus der Wirtschaft zu rechnen, da Covad ein USA-weites Netz besitze und damit eine Sonderstellung einnehme.

Am Freitag ist zudem die Abstimmung über die sog. Tauzin-Dingell-Bill erstmal auf nächsten März verschoben worden. Sie hätte in ihrer ursprünglichen Form Auswirkungen auf Covad gehabt, die derzeit vorliegende Fassung soll allerdings nach Ansicht der Covad-Geschäftsleitung keine unmittelbar negativen Auswirkungen auf Covad haben. Wahrscheinlich wird sie sowieso im Senat niedergestimmt.

Deshalb der Intraday-Anstieg von zeitweilig mehr als 130 % am 13.12.2001.

Covad wird uns auch die nächsten Jahre noch erhalten bleiben, nicht in absehbarer Zeit pleite gehen, und uns sicherlich noch viel Freude bereiten.

[Bannerman]

Hier noch ein kleiner Screenshot vom "COVAD-Day" 13.12.2001, weils so schön war.

[Huckepack]

COVD auch heute mit über 35 % im + !! (--Himmel--)

Wer von euch hat eigentlich noch Covad im Depot ?

(Ich hab noch knapp 2T.)

Huck

[Bannerman]

[V.Mac]

Servus an alle,
servus Bannermann !

Heute ists doch auch nicht schlecht, die nächsten 50 % sind gemacht.

Grund:


Covad extends gains
Plus: PayPal gets preliminary pricing

By Bambi Francisco, CBS.MarketWatch.com
Last Update: 11:52 AM ET Dec. 17, 2001




SAN FRANCISCO (CBS.MW) -- Covad Communications shot up as much as 52 percent Monday in anticipation of the DSL provider emerging from bankruptcy protection this week.

When the high-speed Internet access provider emerges on Thursday, it will be one of the few telecom companies to successfully emerge from Chapter 11.

"Fewer than 5 percent of telecom companies emerge from Chapter 11," said Jack Williams, executive director of the America Bankruptcy Institute.



Covad Communications (COVD: news, chart, profile) ran up more than 35 percent to $1.93 on heavy volume in recent trading. Shares have recovered since trading in the 30-cent range between July and mid-October.

By early November, shares were nearing $1. Frank Marshall, interim CEO and a director, bought a total of 1.5 million shares during the month, while Robert Hawk, a member of the board bought 100,000 shares on Nov. 26 at $1.04 each. By November 13, the announcement of SBC Communications` (SBC: news, chart, profile) $150 million funding helped Covad`s shares spike above $1.

Covad`s emergence from reorganization and use of Chapter 11 as a financial tool to relinquish $1.4 billion in debt is a model for many companies still struggling under the crushing weight of debt.

Rather than raise capital and then re-negotiate its debt, co-founder Chuck Haas said the company went straight to creditors first and began slashing expenses last year. "This was a year-long process," Hass said in an interview with CBS.MarketWatch.com. See interview with Covad`s Haas.

Other telecom companies may have waited too long to restructure their debt, leaving themselves little time and leverage to have a successful restructuring that leaves shareholders with a majority-ownership of the company. Indeed, Exodus Communications (EXDS: news, chart, profile) (EXDSQ: news, chart, profile), ExciteAtHome (ATHMQ: news, chart, profile), Rhythms NetConnections and NorthPoint have fallen into Chapter 11 and are among those that haven`t emerged, leaving shareholders with nothing.

XO Communications (XOXO: news, chart, profile) is still in the process of working through its debt load. Shares of XO dropped 43 percent to 8 cents.

By restructuring early, Covad was able to stay focused on operations. For the first nine months of this year, the company generated $243.1 million, up 135 percent over the same period a year ago. Loss from operations in the same period fell from $500 million last year to $424.6 million, including $19.6 million in charges for restructuring and adjustments to the recorded value of long-lived assets.

Now, the company will end the year with $300 million in cash, a $20 million burn-rate, said Haas.

Getting bloated

Covad went public in January 1999 at split-adjusted price of $8. At the time, Bear Stearns helped the company raise $161 million in capital. In June 1999, the company raised another $327 million in a follow-on offering. By November of 1999, the company raised another $642.8 million through Bear Stearns. The company raised $636 million in straight debt over two years beginning in February 1999. Covad also raised a convertible debt offering of $500 million in September 2000, according to Dealogic.

Speaking of raising funds in the public market, PayPal (PAPXX: news, chart, profile), which enables payments over the Internet, set its IPO price range of between $12 and $14. Salomon Smith Barney is leading the $70 million offering. PayPal`s service is widely adopted on EBay`s (EBAY: news, chart, profile) site even though the online auctioneer has a competing service called Online Payments, formerly known as Billpoint. According to PayPal`s filing, for the nine months ending September 30, 2001, about 68 percent of dollar payments made through PayPal were settlements of purchases made at online auction sites, particularly EBay.

Other online payment providers include Yahoo (YHOO: news, chart, profile) PayDirect and C2it, which is offered by Citigroup. C2it has existing arrangements with AOL Time Warner (AOL: news, chart, profile) and Microsoft (MSFT: news, chart, profile), according to PayPal`s filing


V.Mac

[Bannerman]

Covad Closes Funding From SBC as It Exits From
Bankruptcy and Eliminates $1.4 Billion in Debt

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 20, 2001--Covad
Communications (OTCBB:COVD) exits from bankruptcy today and eliminates
$1.4 billion in high-yield and convertible bondholder debt by paying
bondholders the pre-negotiated amount approved last week, December 13,
2001, by the US Bankruptcy Court for the District of Delaware.
In addition, Covad today received funding from the previously
announced transactions with SBC Communications Inc. (NYSE:SBC), which
include a loan and the restructuring of a resale and marketing
agreement. These agreements have a combined value of $150 million. The
court`s approval of the reorganization plan was one of the conditions
for completing those transactions. The funding from SBC is expected to
provide the capital Covad will need to finance its growth to cash flow
positive operations, which is targeted in the second half of 2003.
Covad eliminated $1.4 billion in debt by paying its bondholders
the court-approved combination of cash and 15 percent ownership of the
company. Covad paid $257 million, or $0.19 on the dollar of face
amount or accreted bond value, plus approximately $13 million in
previously restricted cash as previously approved by the court. Covad
also issued approximately 35 million shares of common stock to the
bondholders and approximately 9 million shares of common stock to
settle class action lawsuits and other claims in accordance with the
court`s order confirming Covad`s plan of reorganization. Pre-existing
shareholders will retain approximately 80 percent of the company.
"Major steps have been completed in the revitalization of Covad,"
said Charles E. Hoffman, Covad president and CEO. "A year ago, Covad
refocused the company to accommodate the change in capital markets and
began reducing expenses. We have now finished restructuring our
balance sheet, are fully-funded and essentially debt free. We are
focused on refining our business plans to continue to innovate with
new services, strengthening our distribution channels, maintaining
quality service and financial discipline and keeping the customer at
the center of what we do."
Covad Communications Group, Inc.`s operating companies, which
provide DSL services to customers, were not included in the
court-supervised proceeding and continued to operate in the ordinary
course of business without any court imposed restrictions throughout
the approximately four month process. Covad Communications Group, Inc.
filed for reorganization on August 15, 2001.
The new agreement with SBC will not increase the company`s
ownership in Covad, which is currently at approximately five percent.
The agreement allows SBC to offer a more diverse portfolio of DSL
products to customers inside and outside SBC`s traditional 13-state
region.

[Bannerman]

--nicht autorisierte Übersetzung mithilfe Computers--
www.systransoft.com
(zur Erheiterung)

Covad schließt die Finanzierung von SBC als es beendet vom Bankrott und beseitigt $1,4 Milliarde in der Schuld

SANKT CLARA, Calif. -- (BUSINESS WIRE) -- Dez. 20, 2001 -- Kommunikationen Covad (OTCBB:COVD) beendet vom Bankrott heute und beseitigt $1,4 Milliarde im hohen Ergebnis und in der umwandelbaren Obligationärschuld, indem sie Obligationären die vor-vermittelte Menge genehmigte letzte Woche, Dezember 13, 2001, durch das US-Konkursgericht für den Bezirk von Delaware zahlen. Zusätzlich empfing Covad heute die Finanzierung von den vorher verkündeten Verhandlungen mit SBC Communications Inc. (NYSE:SBC), die ein Darlehen und das Umstrukturieren eines Weiterverkaufs und der Marktvereinbarung umfassen. Diese Vereinbarungen haben einen kombinierten Wert von $150 Million. Die Zustimmung des Gerichtes des Reorganisierungplanes war einer der Bedingungen für das Durchführen jener Verhandlungen. Die Finanzierung von SBC wird erwartet, um das Kapital Covad zur Verfügung zu stellen muß sein Wachstum zu den positiven Operationen des Bargeldumlaufs finanzieren, das zur Hälfte zweite von 2003 gezielt wird. Covad beseitigte $1,4 Milliarde in der Schuld, indem er seinen Obligationären die gerichtliche Kombination des Bargeldes und einen 15-Prozent-Besitz der Firma zahlte. Covad zahlte $257 Million oder $0,19 auf dem Dollar der Gesichtsmenge oder wuchs zusammen

[Bannerman]

Zitat eines anderen Aktionärs:

12:01 ET DSL Sector : Kaufman Bros launches coverage of the DSL space. Firm initiates Covad (COVD 2.26 -0.15) with a Buy rating and $8 price target and reinstates coverage of DSL.net (DSLN 1.27 -0.06) with an Accumulate and yr-end target of $2. Says both companies -- with their networks basically complete, fully funded through positive cash flow, and virtually no debt -- are well positioned to emerge from the difficult 2000/2001 maelstrom and achieve their true potential. Helping matters is that much of the competition has disappeared

http://clubs.yahoo.com/clubs/covadcommunicationsanddsl


...und dann war plötzlich der Intraday-Sprung um .45 $

[Bannerman]

Der Bericht von Kaufman Bros (KBRO) ist nachzulesen als .pdf-Datei (KBRO Covad) unter:
http://briefcase.yahoo.com/bc/covd_paynereport/lst?&.dir=/My…

Sehr interessant, insbesondere daß sie ein Relisting an die NASDAQ NMS erwarten.

[Bannerman]

COVAD veröffentlicht die Ergebnisse des 4. Quartals
http://biz.yahoo.com/bw/020116/160126_1.html

Die Cashburnrate liegt nur noch bei 20 Millionen $ pro Quartal, wobei eine Verbesserung von Quartal zu Quartal erwartet wird. In der Kasse sind noch 290 Millionen Dollar plus wahrscheinlich ca. 100 Millionen Dollar von SBC. Ein positives Ergebnis wird für die zweite Hälfte 2003 erwartet. Derzeit hat Covad 351000 Kunden.

--> Damit benötigt Covad anscheinend weniger als 120 Millkonen Dollar bis zu einem ausgeglichenen Ergebnis. Also verfügen sie noch über ein komfortables Geldpolster von ca. 270 Millionen Dollar für sonstige Zwecke. Dazu ist das Unternehmen wieder nahezu schuldenfrei. " target="_blank" rel="nofollow ugc noopener">http://biz.yahoo.com/bw/020116/160126_1.html

Die Cashburnrate liegt nur noch bei 20 Millionen $ pro Quartal, wobei eine Verbesserung von Quartal zu Quartal erwartet wird. In der Kasse sind noch 290 Millionen Dollar plus wahrscheinlich ca. 100 Millionen Dollar von SBC. Ein positives Ergebnis wird für die zweite Hälfte 2003 erwartet. Derzeit hat Covad 351000 Kunden.

--> Damit benötigt Covad anscheinend weniger als 120 Millkonen Dollar bis zu einem ausgeglichenen Ergebnis. Also verfügen sie noch über ein komfortables Geldpolster von ca. 270 Millionen Dollar für sonstige Zwecke. Dazu ist das Unternehmen wieder nahezu schuldenfrei. [/b]

[Bannerman]

Der bisherige Covad Club auf Yahoo wurde anscheinend durch einen Sabotage-Akt gelöscht. Als Alternative wurde folgende Adresse vorgeschlagen:

http://clubs.yahoo.com/clubs/covadcommsinvestmentchatroom

Ansonsten mal bei Lycos Finance im Bereich des Covad Message Boards schauen (www.ragingbull.com "Covad")

Hier die Begründung von javatown_us auf Lycos:

From: "javatown_us"
Date: Wed Jan 16, 2002 8:37 am
Subject: Reason why our Club was Deleted

It turns our that a founder was added to the club while Covad_Fairy was going to be gone for a while. Unfortunately the choice, Lucretius_Taurus, was not reliable and did the unthinkable last night. He booted every member and then deleted the entire club. I have proof of what happened and will be talking with Yahoo today to see if there is anyway the site can be re-established.

For now this is our home.

It might sound stupid, but This place WILL be as good as our last. It wasn`t the old board that was good. It was the members that were. Those same members will make our new house a home.

When Lucretius_Taurus was made a founder, it was unexpected to Callem and myself. At that time I made a backup of our entire member list. At the time it was about 360 people. Yesterday we had about 378. We are in the process of trying to contact those people, with Yahoo`s help as well. To help facilitate, if you`ve emailed somebody in the past, please send the link to this club so they can find us.

Hope this clairify`s what happened. We will be talking with Yahoo today and will provide updates. If you want to talk about it please visit me in chat or send me an email.

AS of today:

Lucretius_Taurus will be banned from this club if he shows up. Covad_fairy will be asked to not join or attend our club until He contacts me in person to discuss what happened.

Javatown_us

[Bannerman]

Ok, nach zwei Tagen Verwirrung legt sich der Staub ein bißchen. Die endgültige Adresse der Hardcore-Covad-Anleger (ca. 3%) trifft sich nun:
http://groups.yahoo.com/group/covadcommunications/

COVAD - Long and Strong !

[sittin bull inv]

Das erste Mal, das ich so etwas erleben darf...

ein moderner Breitbandanbieter durch Chapter 11
gegangen und heil wieder raus...

das läßt auf Potenzial schließen in Zukunft...


z.Z. sieht der Chart aber nicht so gut aus-
war wohl doch zu schnell der Anstieg...

jetzt braucht es nur noch ein Relisting an der Nasdaq...

[Bannerman]

BW2606 JAN 29,2002 11:26 PACIFIC 14:26 EASTERN
( BW)(CT-STOCKSATBOTTOM.COM) StocksAtBottom.com announces Investment Opinion on Covad

Business Editors
NOTE TO EDITORS: The following is an investment opinion issued by StocksAtBottom.com

WESTPORT, Conn.--(BUSINESS WIRE)--Jan. 29, 2002--
StocksAtBottom.com today announced it has released its latest research on Covad (COVD).
StocksAtBottom.com has reiterated its BUY recommendation on COVD, trading at $2.16 per share as its number one recommendation of 2002.
SAB initially liked the stock at 50 cents per share in 2001. We believe it is a more compelling buy today at $2.16, than it was at 50 cents. Covad has only given away 15% of its equity in return for $1.4 billion of debt forgiveness. Eliminating the debt eliminates $1 billion in future interest payments. They are also the first company in bankruptcy history to double their revenue base while in bankruptcy. We believe Covad will be the best stock to come out of bankruptcy since Interstate Department Stores came out as ToysRUs 25 years ago. SBC Communications has given them the equivalent of $150 million cash to help Covad grow. They now have the funding necessary until they achieve positive cash flow in 2003. Covad`s previous $100 million per quarter burn rate is now down to $25 million per quarter. 99% of the professional money managers can not buy the stock until it goes through $5 per share. The trip from $5 to $10 and higher will be easier than the trip to $5 as institutions fight for ownership in the stock. SAB believes that Covad will be as big a stock The Sports Authority was the previous year. StocksAtBottom.com believes that Covad will trade between $10 and $20 per share by Christmas of 2002.

StocksAtBottom.com also has opinions on Microsoft, General
Electric(GE), Oracle Systems(ORCL), Cisco(CSCO), Disney(DIS), American Express(AXP), AAR Corp.(AIR), Intel(INTC), Merck(MRK), Sun Microsystems(SUNW), Tyco(TYC), AOL(AOL), Dell Computer(Dell), Gateway (GTW), Compaq Computer(CPQ), Exxon(XOM), Home Depot(HD), Celanese (CZ), Circuit City(CC), and Coca Cola(KO


Ich vermute, mit der Aussage über die Professionellen Geldmanager meinen sie, diese könnten keine Aktien von Firmen kaufen, die nicht an der NASDAQ gelistet sind. Im ganzen aber eine finde ich gelungene Darstellung. Mal schauen, ob sie Recht behalten.

Das ganze weist in Richtung der Wette von V.Mac und mir. Vielleicht lag ich nur ein Jahr zu früh. (Grüße, V.Mac).
Mal schauen, wo Covad im Oktober steht.

[V.Mac]

na schön wärs !

Würde glatt auf den Kasten noch einen draufsetzten, wenns so wäre.

Dann lohnt sich doch ein Treffen mehr !

V.Mac

[Bannerman]

Es könnte diesmal leider wieder ernster sein:
Anscheinend hat der Chef der US-Regulierungsbehörde sich entschieden, den Klagen der großen Telekommonopole nachzugeben und den Zugang von Wettbewerbern zu erschweren oder sogar unmöglich zu machen. Allerdings ist die Entscheidung noch nicht endgültig. Außerdem steht nächste Woche (Ca. 27.02.) die Entscheidung über die zuvor verschobene Tauzin-Dingell-Bill an, die sich "Internet Freedom and Broadband Deployment Act" schimpft, aber nur die Festschreibung der Monopole von Ma Bells Töchtern bezweckt (Abbau von Regulierung).

Zunächst zur FCC:

Strategy

FCC`s Moves Gives You One Chance to Save Your Company

By Dana Blankenhorn
ISPworld News


Michael Powell`s FCC has decided, at a stroke, to attempt murder
against the independent ISP and CLEC industry.

By defining Internet broadband as an "information service," rather
than for what it is — data going over telephone lines – the FCC`s new
majority leader nullifies the 1996 Telecommunications Act and gives
ILECs back monopoly control over their subsidized networks.

But (and this is important) last week`s announcement is not the final
word.

Like other administrative agencies the FCC must provide a time for
public comment before making its decision, and deliver answers to
those comments. CyberTelecom`s FCC 101 is, while dated (it still has
William Kennard listed as the agency`s chairman) still a good guide
to what must go on, and well worth reading.

What this means is that, if you want to stay in the DSL business (or
get into the business of providing cable service) you need to get
with your customers now, and convince them to file comments. Every
customer who switched to you because their ILEC provided horrid
customer service needs to be heard.

Powell`s own rationalizations for the policy change are nothing but
telephone company rhetoric disguised as a call for competition. Every
telephone going into every home and business in the U.S. was put
there by a regulated monopoly. The lines that link that line to a
switch, as well as the switch, were also built by a monopoly.
Claiming that competition between monopolies (DSL, cable and
satellite) represents real choice for consumers is nonsense — it`s
just an oligopoly.

But while you`re trying to get the FCC to change its mind (and even
if the agency doesn`t opponents can appeal in court) you also need to
create an alternative strategy, a wireless strategy.

Because at the same time it was proposing to close the wired world to
you the FCC was opening new wireless vistas, approving Ultra Wideband
service at frequencies over 3.1 GHz.

This means there are now several unlicensed frequency bands available
for your use in linking subscribers to broadband services. There`s
the

Industrial, Science, and Medicine (ISM) band at 2.4GHz (802.11b) and
the Unlicensed National Information Infrastructure (UNII) band at
5.2GHz (802.11a). Add UWB frequencies over 3.1 GHz to that list and
you have a lot of bandwidth to play with.

Now consider you don`t need a lot of money to play. An experiment
announced last week by O`Reilly & Associates shows that the best
antenna for use in 802.11 networks may be based on (drum roll,
please) an empty 40 oz. can of beef stew.

What will it take for you to get into the game? Only a hearty
appetite for knowledge, knowledge about waves, about radio
interference, and about the FCC`s rules.

Earthlink may have already seen the handwriting on the wall here.
Spokesman Kurt Rahn told ISP Executive its 802.11 effort in Atlanta,
which was built by Broadlink, is "a trial" that can be "a fill-in for
DSL or cable" that "will allow us to offer high speed service where
we can`t currently," and provide some redundancy." It may also prove
to be their ace in the hole.

So don`t get mad at Powell`s Folly. Fight the proposal, and go
wireless. It can still be a winning strategy.

[Bannerman]

FCC ruling may hurt some DSL providers

Observers say Tauzin-Dingell Bill remains bigger issue.

By Michael Martin
Network World, 02/25/02

New rules under consideration by the Federal Communications
Commission could make it more expensive for competitive providers to
serve up DSL services.

If the proposed changes stand, DSL would be labeled an information
service rather than a telecom service. That change may in turn reduce
the price breaks that regional Bell operating companies are required
to offer competitive DSL carriers.

But until the FCC reaches a decision on whether to decrease
regulation on broadband and RBOCs that provide the infrastructure for
DSL, it`s unclear how much effect the proposed rules could have.

The RBOCs - SBC Communications, Verizon, BellSouth and Qwest
Communications - have complained for years that they are unable to
offer DSL services on a more widespread basis because FCC
regulations, as well as the Telecommunications Act of 1996, force the
RBOCs to wholesale their broadband services to competitors. The RBOCs
say they`re hesitant to invest in new broadband networks when they
can`t predict how much of a profit margin they`ll make from any new
network investments.

Earlier this month, the FCC released what is called a notice of
proposed rulemaking. In its notice, the FCC indicated that it would
designate DSL as an information service, instead of a telecom
service, and this would allow the RBOCs to escape some of their
wholesaling obligations. The goal of the rule change, the FCC says,
is to provide incentive for the RBOCs to invest in new broadband
technology and put DSL services on a more even footing with cable
broadband offerings.

Cable providers are not forced to wholesale broadband services to
competitors.

The FCC now will solicit comments from the public about its proposed
rule change. Once the public comments are in, the commission will
make a final ruling. Any rule changes are likely to take at least six
months.

Not all competitive DSL providers would be affected by the FCC`s
proposed rule changes. DSL providers that have their own DSL access
multiplexers and purchase only the unbundled local copper loops from
the RBOCs, such as Covad Communications, won`t see their business
models change.

The ones affected will be providers that rely entirely on purchasing
wholesale DSL from the RBOCs, such as AOL. These providers have been
getting their DSL at an approximately 55% discount, says Matthew
Davis, an analyst with The Yankee Group. Davis says these competitive
providers still would be able to buy wholesale lines after any rule
change, but that the discount would likely drop into the 20% range.

"Obviously that may make it tough for competitors to make money on
the service," he says.

While Covad wouldn`t likely be affected by the proposed FCC rule
change, Jason Oxman, Covad`s vice president and assistant general
counsel, says the provider isn`t happy with the direction the FCC is
heading in.

"Their actions here appear to be exactly what the [incumbent local
exchange carriers] have been calling for," he says.

Oxman downplayed the impact of any FCC rule changes. Instead, he
says, Covad is focusing its attention on the Tauzin-Dingell Bill,
which is slated for a vote in the U.S. House of Representatives this
week. Tauzin-Dingell would allow the RBOCs to offer data services
without having to prove that they are giving competitors access to
the RBOC networks, as called for in the telecom act.

Tauzin-Dingell is perhaps more significant because legislation passed
by the House and U.S. Senate can alter the provisions of the telecom
act, while the FCC cannot, Oxman says.

Verizon spokesman Bob Bishop agrees that Tauzin-Dingell is a much
more important action than the FCC`s proposed rule changes.

"The problem we have with this is people are using the proposed rule
change to politicize what`s going on," he says. "They`re trying to
say the FCC action makes Tauzin-Dingell less important, and that`s
not true."

It`s far too early to tell what, if any, impact the proposed changes
would have on DSL services, Bishop says.

If Congress passes Tauzin-Dingell this week, the bill must still get
through the Senate - something opponents consider unlikely to happen.

"We`re confident that if it gets through the House, there`s no way
the Senate will pass it," Covad`s Oxman says.

http://www.nwfusion.com/news/2002/0225carrier.html

[Bannerman]

Covad Emerges From Bankruptcy
To Post a Profit for Fourth Quarter
Quelle: Wallstreet Journal

By MEI FONG
Staff Reporter of THE WALL STREET JOURNAL


Covad Communications Group Inc., one of the few high-speed Internet
companies to emerge from bankruptcy proceedings, is expected to
announce Wednesday that it swung to a profit in its fiscal fourth
quarter due to a debt restructuring.

The Santa Clara, Calif., company, which sells high-speed links to the
Internet via digital subscriber lines and other technologies, said it
earned $858.5 million, or $4.69 a share, in the quarter ended Dec.
31, compared with a loss of $907.5, or $5.40 a share, a year earlier.
The results include a $1 billion gain resulting from the
extinguishing of debt in the bankruptcy process. Excluding the gain,
the company said it had a net loss of $175.2 million, or 96 cents a
share.

Revenue for the quarter increased 62% to $89.5 million from $55.2
million last year.

Covad`s results were relatively encouraging in light of the
continuing meltdown of the Internet and telecommunications sectors.
Covad emerged from bankruptcy proceedings in December, while
competitors such as Rhythms NetConnections Inc. and NorthPoint Inc.
have not fared as well.

For 2001, Covad is expected to post net income of $344.8 million, or
$1.94 a share, compared with a loss of $1.4 billion, or $9.47 a
share, for the prior year. Excluding the gain, Covad is expected
posted a net loss of $689 million, or $3.89 a share. Revenue is
expected to have more than doubled to $332.6 million from $158.7
million.

Still, the company faces challenges such as regaining customer
confidence. "They have to get the cash flow to demonstrate to
customers they`ll be around," said Don Sinsabaugh, an analyst at
Katan Associates International, a New York-based consulting firm.

Covad is expected to say earnings before interest, tax, depreciation
and amortization, sometimes called operating cash flow, fell to
$386.1 million from $1.2 billion a year earlier. The company said it
reduced its quarterly cash-burn rate to less than $60 million from
$200 million at the beginning of this year. As of Dec. 31, 2001, it
had $293 million in cash and cash equivalents, compared with $870
million in the same period last year. Chief Financial Officer Mark
Richman said its cash position is enough to carry the company through
the second half of 2003.

Covad saw a modest one-year gain of 28% in subscribers to 351,000
from 274,000 in 2000. It is a "small but encouraging" gain in a year
that included the bankruptcies of telecommunication carriers and the
Sept. 11 terrorist attacks, says analyst Vic Grover of New York
investment firm Kaufman Bros. LP.

Covad was able to ease out of bankruptcy and erase $1.4 billion in
debt through a deal with creditors, which agreed to waive existing
debt agreements in exchange for cash and a 15% stake in the company.
Covad also negotiated a $50 million loan from shareholder SBC
Communications Inc.

[Bannerman]

April 23, 2002 04:18 PM ET
by Jerry Borrell

[INSIDE COVAD] - Interview mit CEO Charles Hoffman

Charles Hoffman grew up in St. Louis, Mo., attended the U.S. Coast
Guard Academy, and enlisted in the U.S. Air Force, where, for four
years, he was a Russian linguist in Fairbanks, Alaska. He left the
Air Force in 1971 and then earned his bachelor`s degree and MBA
from
the University of Missouri–St. Louis. His first job was with IBM
(IBM), where he spent six years selling mainframe computers. In 1980,
Hoffman joined Southwestern Bell, which was then part of AT&T (T).
During his 16 years in various positions at Southwestern Bell and its
parent company, SBC Communications (SBC), he helped build SBC`s
cellular operations in the St. Louis, Boston, and Washington,
D.C./Baltimore regions and eventually established its wireless
operations throughout Mexico.

In 1996, Hoffman joined Sprint PCS (PCS) and ran its northeastern
operations for two years. In 1998, he became CEO of Rogers Wireless
Communications, a Canadian company that is listed on the New York
Stock Exchange. Hoffman is currently the president and CEO of Covad
Communications.


Upside: Why did you decide to leave Rogers to come to California and
run Covad?

Hoffman: There were a lot of reasons. One is that I had made some
money [at Rogers] and I could afford a risk. I was intrigued by DSL,
and broadband in general was on the cusp of dramatic growth, with
only 9 percent or 10 percent penetration, so there was a long way to
go. Everybody wanted it.

You perceived that this was your chance to resurrect the company?

Yes. I wanted to make another hit, but I was ready to leave Canada,
particularly after Sept. 11. It`s almost like the guys who are
still
up there are [trying to] escape the problem. I just felt like
Canada`s too easy. It`s a great place to live, with nice
people, but
it was time to come home. The other thing was that I really needed
something new. Doing the same thing for four years was kind of
unusual for me.

The interview process [at Covad] was seven months long. I interviewed
with every senior person and every board member here, and I did it
just on weekends because I didn`t want to take time from my job
to do
it, so it was a long process. I had ups and downs. I really got
interested when I saw they were getting ready to do a proactive move
to address our issues and what it costs to build out a nationwide
network. Thank God we did that.


Describe Covad before you got here.


The company was doing great, hitting its numbers. [Problems arose] in
the fourth quarter of 2000 when 19 ISPs failed in the same quarter.
Nineteen of our biggest customers all stopped paying, and [their]
customers—the end users—were left in the lurch. That led to
all kinds
of problems. There wasn`t a lot of attention paid to the
infrastructure [at Covad], as in; Do we have proper clients to serve
revenue assurance? Do the bills we send the customers match what we
think they owe us? There were a lot of basic business problems, just
because it was a startup and it grew fast. Covad was a company of
5,000 people. The stock price had gone up to $65.

Covad Communications


Covad is a national broadband service provider of DSL Internet and
network access to small- and medium-sized businesses and home users.
It also offers IP and dial-up services through ISPs,
telecommunications carriers, enterprises, affinity groups, PC OEMs,
and ASPs.

Founded: 1996

URL: covad.com

Number of employees: 1,500

Exchange/symbol: Naddaq/COVD

Shares outstanding: 178.99 million

Market capitalization: $314.5 miliion As of 3/12/02


When you joined, it had a market cap of some several billion dollars?

No, at the time I joined, the stock was down to 85 cents. I knew what
I was getting into. That was one thing: The board really made sure I
[was aware of] every problem. They didn`t want surprises. They
didn`t
want to go through all of this [interviewing] and have me spend a
month and say, "I`m out of here." I really liked their
strategy, and
I really liked the company and the people. I started on June 25
[2001], and that`s the day we closed a subsidiary. We filed for
bankruptcy in mid-August, but it was pre-negotiated with the
bondholders. It didn`t affect our customers. It certainly
wasn`t my
strategy, but I knew of it before I joined.


And what distinguishes a prepackaged bankruptcy?


[In our case,] it was pre-negotiated with the bondholders, who took
19 cents on the dollar and 15 percent of the equity. It was a good
deal for them, because they had lost confidence that they would get
anything. Our competitors, like NorthPoint Communications and Rhythms
NetConnections, had failed or were about to fail.


How much did Covad owe its bondholders?


At one point, we were $4 billion in debt. The trick was to keep the
business going. The bankruptcy was associated with our name, so every
time you saw our name, the B word was in front of it, even though it
was pre-negotiated and just affected bondholders. We had issues with
American Express, which dropped all of our corporate cards [on the
day of our bankruptcy], so we are not going back to them. Throughout
this period, the trick was to keep our partners confident that we
were going to survive. We still needed AT&T, SBC, and all of our
partners to keep giving us business throughout that period, but, at
the same time, we had to cut expenses big-time once we paid off the
bondholders.


You had to pay them in cash?


Yes, we had the cash to do it. We had to pay them about $283 million,
but the end result was great: no debt on our balance sheet for a
nationwide network. We had to keep the end users intact, we had to
keep the partners that sell for us intact, and [we had to] cut
expenses so that the cash would last longer. We were cutting expenses
like mad without affecting quality, but then we [needed] more money.
We had to raise funds so that we could get the cash flow positive.


How did you raise money?

It wasn`t easy. I spent a lot of time telling the story, telling
[people] what was going to happen. We could`ve gotten venture
capital
money, but, rather than do that, we monetized a contract we had with
SBC.


I`ve seen that reported different ways. Some people think it was
a
loan by SBC, and some say that it was a settlement as part of
litigation that you won against them for unfair competitive
practices. What`s the real story?


It`s all of the above. It started when we won an antitrust suit
against SBC.


You have other suits remaining?


One with Verizon (Communications) (VZ) that goes to trial this
November.


What was the basis of that litigation?


In the early days of this business, we had to rely on the phone
companies to provide us their loops and space in their central
offices [COs]. That`s part of the [Telecommunications Act of
1996].


That means the central premise is collocation and the last-mile
delivery?


Right. Their copper allows us to do this. The classic story was right
here in Menlo Park, Calif., where SBC kept saying, "We have no
room
for your collocation." We were in arbitration, and the lawyers on
both sides agreed to have an onsite visit at the central office
because Pacific Bell was saying there was no room. But when they got
there, it was a bowling alley. The whole floor was empty.


That was embarrassing for SBC?


Very. The lawyers came in the next day to settle the lawsuit, which
resulted in a $600 million take-or-pay contract for services in that
amount over a period of six years. It was heavily weighted toward the
back end, unfortunately, but SBC started using us to provide DSL to
their end users as the underlying service for SBC. Also, they`re
in
13 states. Outside of those 13 states, they use us. They were going
pretty slowly, so during this fundraising process, we went down to
see them and said, "Well, guys, you`re not taking very well,
so
you`re going to have to pay us." That`s right off their
bottom line.
That`s embarrassing. We said, "With your run rate, you`re
never going
to catch up." And they didn`t have much interest, until we
said, "What if we structure this as a prepayment?" In other
words,
we`d get our money up front, as opposed to over time. They showed
a
lot of interest in that, and that`s the way it worked out.
There`s a
$50 million involvement with no interest for the first two years and
$75 million that`s a prepayment for services.


Was that much-needed cash for you at the time?


Yes. That was in December.


What did it feel like negotiating with your former employers?


It was interesting, because I knew them all. I knew the [M&A] guy,
the general counsel, the number two guy there, and the CFO I was with
while in Mexico.


Did that help or hinder the process?


I don`t think it mattered, because they had to convince their
board
and the chairman of SBC that this was a good business deal, so I
don`t think that the personal [relationships] really mattered
other
than getting the first appointment and getting them to listen to us.
Everybody associated with Covad in those days was the enemy.
We`re
partners now, not the enemy.


Some people might have expected the phone companies to see you as a
natural partner.


Right. They may talk of us as competitors, but we`re nationwide,
and
none of them are. To any one of them in their territory, we`re
not
that big of a competitor. Also, because we`re mostly a
wholesaler,
we`re selling through the AT&T brand, so SBC doesn`t even
necessarily
know we`re the underlying service provider when they lose
business to
AT&T.


Do you also compete with the cable-modem companies?


Just in the consumer segment. We really divide the company into two
focuses: One is direct and one is wholesale. Resale is still about 90
percent of the business. That`s how we grew up, and that was our
emphasis up until four or five months ago. Covad.net, which is our
own ISP, is our fifth-largest customer and is growing really fast.


Wasn`t NorthPoint primarily consumer?


Yes, that was one thing that made us different. Business is our sweet
spot. They were less price-sensitive. They couldn`t function as a
company without broadband. Business is a much better target.
We`ve
really been innovators in that [sector] with new services.


Whereas Excite@H... and NorthPoint were delivering to consumers.


Because cable only goes to homes; it doesn`t go to businesses.


Describe the company as it is today.


We`re in 1,700-plus COs. We have about 1,500 people. The main
locations are Santa Clara, Calif.; Denver, Colo.; Manassas, Va.; and
Media, Pa. We have people everywhere, but those are the big ones. We
have two network-operating centers—one here in Santa Clara and
one in
Manassas—that we call control centers. Denver is really our
operations center. Most of the customer-facing people are in Denver.
The Covad.net ISP is located in Media, and that [came from our]
acquisition a couple of years ago [of a company] called
LaserLink.net, which grew into our own ISP.


How are your customers by region? How are they dispersed?


We`re in 50 regions of the country and the 50 largest
metropolitan
areas. There`s a direct correlation between how we`re doing
in that
market and how long we`ve been in that market. The top markets
are
the ones you would expect: New York City, Chicago, San Francisco, and
Washington, D.C. They tend to be the largest cities, but there is a
correlation between how long we`ve been [in a city] and the size
of
the city. When I talk about our worst market, it`s our newest
market,
so it`s no surprise. The customer base is scattered throughout
the
country by region, depending on how long we`ve been in that
particular region.


Are you principally divided by region of the country or by state?


We`re organized along customer segments. In wholesale, the
customers
are AT&T, EarthLink, MegaPath, Speakeasy, and SBC. EarthLink is our
largest customer by far, Speakeasy is second, and MegaPath is third.
AT&T is about fourth and Covad.net is fifth.


Where is your cash—in the bank or assets?


We ended the year with $290 million in the bank, and we`re
burning
about $20 million a month. It`s coming down.


As you look back on this, would you do a prepackaged approach to
Chapter 11 bankruptcy protection again?


It was scary. We had to get the majority of the bondholders to agree,
and there were hundreds. Before we announced it, we had persuaded
more than 50 percent to agree, but the formal voting process
didn`t
happen until a month before the December coming-out date. Throughout
that period, we walked a tightrope. Some of us were pushing for
positive PR, while the rest of us were saying, "Well, we
don`t want
to be too positive." We didn`t want the bondholders to think,
"Hey,
boy, maybe if I just hang in there, I`ll get more than 19 cents
for
these bonds." So, last year, we quietly tried to keep things
going,
and, in fact, we ended up doubling our revenue in a bankrupt year
with a pretty poor economy.


When did the Nasdaq delisting occur?


In July, and the Chapter 11 was filed in August.


Your OEM customers, also potential competitors, are saying,
"These
guys are delisting; they`re going to file for bankruptcy."


[And we`re saying,] "But hang in there with us." The
other factor is
that there was no competition. We can deal with the ILECs [incumbent
local-exchange carriers]—AT&T and [companies] like that. Without
us,
there`s no price competition, there`s no innovation, and
there`s no
focus on small businesses. We [offer] a lot, so customers really
wanted us to survive. Cable has its own set of issues, and no one
really felt all that comfortable with Excite@H... during this period
of time.


Who`s acquired them?


WorldCom (WCOM) bought the assets of Rhythms NetConnections. AT&T had
the biggest piece of Excite@H..., so they got it, but they sold their
broadband business [to Comcast], which is desperately trying to
convert itself into a big, nationwide ISP via cable.


Is that going to happen, on the cable side?


When I was in Canada, I was very involved in a cable company.
There`s
a problem with the technology: It works great until all of your
neighbors get it, too, and then your service really deteriorates.
Plus, cable companies are used to being a monopoly. They`re not
really good at customer service. Maybe [Comcast] can pull it off. It
doesn`t affect us that much, because we`re not very consumer-
oriented. Funding is our big concern right now. Our focus is really
our small-business customer.


Today, Covad is traded over the counter?


In the pink sheets; we`re still part of Nasdaq. You can still go
on
Nasdaq and look us up. The problem is, if one of my friends calls his
broker and says, "I want to buy Covad," the broker will do
his best
to talk him out of it, because he doesn`t know anything about it,
and
he says, "They were delisted; they just got out of bankruptcy.
Are
you crazy?"


Analysts still follow you?


They`ve started to again. We didn`t have any analysts
following us
once we were delisted last year.


Your coverage dropped?


Yes. Kaufman Bros. was the first to come out with an $8 target price
and a buy recommendation. Today, [our stock] was at $2.03. So
it`s a
great buy, and the volume was 3 million shares an hour ago.


In a day?


Every day, there are 2 [million] to 3 million shares trading hands,
even though it`s over the counter.


When does the first market maker show up?


Others are talking to us about picking up coverage. We need to get
relisted on Nasdaq before institutional buyers can come in. To do
that, you have to meet five or six criteria, like a minimum number of
assets and public shares. We can meet them all, with one exception:
There has to be a $5 average stock price for over 90 days.


What is the feedback from institutional buyers?


The trick for all of these guys now is the buying opportunity. They
know once we`re at $5, they will have missed the opportunity. So
how
bold are they? The trouble is, the whole telecom sector has been
decimated. So there are a lot of skeptical people out there. Since we
got the funding from SBC, we can say with confidence that we`re
fully
funded to keep the cash flow positive, but since we haven`t
announced
any results yet, there`s still a lot of, "Let`s see if
they can do
well now."


The only issue now is getting the stock relisted?


Right, whether or not the stock price goes from $2 to $5, based just
on fourth-quarter 2001. I have my doubts, but then first-quarter 2002
will follow, so we`ll just go with that. We`re fully funded.
Everybody is in a good spot. We did a big option grab in November at
something like 56 cents, so all of the employees are thrilled that
[the stock] is at $2.






Jerry Borrell is editor in chief of UPSIDE magazine.

[laab]

@Bannermann
Danke für das interessante Interview.Covad ist und bleibt spannend.
Schönen Abend
laab

[Bannerman]

Friday May 24, 12:41 pm Eastern Time
U.S. Court Vacates FCC`s Phone `Line Sharing` Order
By: Mark Wigfield
Quelle:http://biz.yahoo.com/djus/020524/200205241241000527_1.html
Dow Jones Newswires

WASHINGTON -- The U.S. Court of Appeals on Friday vacated a key policy of the Federal Communications Commission meant to increase competition in the market for high-speed Internet service delivered over conventional telephone lines.

Called "line sharing," the rule allowed upstart phone companies competing with dominant local providers to provide the high-speed service over the same line that subscribers use for conventional voice service. The high-speed service is known as "DSL," the acronym for digital subscriber line modems, used to turn conventional copper telephone lines into relatively high-speed conduits.

The FCC adopted the rule in 1999 and was seen as a major victory for the CLEC industry and providers such Covad Communications Inc. (COVD) and others, many of which are now defunct. It enabled consumers to avoid purchasing a second phone line by allowing CLECs the same access to the copper wire into the home enjoyed by the incumbent that owns the wire.

But acting on a challenge brought by dominant incumbent providers, the court vacated the rule and sent it back to the FCC for further consideration. It also told the FCC to reconsider broader rules that require incumbents to lease to competitors at cut-right prices a variety of network elements that can used to provide phone service.

In the end, "the entire argument about expanding competition and investment boils down to the Commission`s express of its belief that in this area more unbundling is better," the court said. "But Congress did not authorize so open- ended a judgment."

------------------------------------------------------
Sieht ganz schlecht aus. Line-Sharing ist zentral für das Geschäftsmodell alternativer DSL-Anbieter. Das das Berufungsgericht jetzt die Line-Sharing-Anweisung der FCC (Regulierer) aufhebt, kann sich wohl nur fatal auswirken. Damit scheinen sie der Entmonopolisierung endlich den Todesstoß zu versetzen, und das, obgleich es den CLECs so schon schlecht geht. Hoffentlich irre ich mich. Ansonsten erwarten alle Montag einen Kurssturz.

[Bannerman]

Monday July 29, 7:02 am Eastern Time
Press Release
SOURCE: Covad Communications
Covad Signs Wholesale Service Agreement With Sprint
Agreement Enables Sprint to Offer DSL Service Over Covad`s National Network
http://biz.yahoo.com/bw/020729/292041_1.html
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 29, 2002--Covad Communications (OTCBB:COVD - News) announced today that it has signed an agreement with Sprint (NYSE:FON - News, PCS - News) which provides Sprint with the ability to purchase wholesale DSL services. Under the agreement, Covad will provide Digital Subscriber Line (DSL) access for Sprint`s business-class customers in selected markets. Sprint expects to begin placing orders for Covad services in the third quarter of 2002. The Covad-Sprint DSL agreement does not contain any volume or revenue commitments by Sprint.

The agreement with Covad, a leading national broadband services provider using DSL technology, is expected to double Sprint`s potential market coverage for business-class DSL services. Covad provides service in 94 of the top Metropolitan Statistical Areas (MSAs) across the United States and currently covers more than 40 million homes and businesses, which represents approximately 45 percent of all U.S. businesses. This agreement does not impact DSL sales and operations through Sprint`s Local Telecommunications Division, which operates in 18 states and offers a similar service (Sprint FastConnect®).

"Sprint is a leader in today`s communications industry," said Charlie Hoffman, Covad CEO and president. "Combining our respective expertise in serving businesses will result in a powerhouse source for companies who want the best in high-speed access to enhance their business transactions. This contract is another proof-point of Covad`s continuing success in the business arena and development of our wholesale channel."

Covad will provide symmetrical and asymmetrical DSL (SDSL and ADSL) services as well as IDSL service, which serves customers at longer distances from their central office. The agreement includes the opportunity to purchase Covad`s T-1 service. All of these products can be used by businesses for high-speed Internet access either at the office or by teleworkers at home.
---------------------------------------------------
Indem Covad jetzt in den Filialen von Sprint angeboten wird, dürfte vermutlich der Absatz kräftig angekurbelt werden. Zumindest ist das die Ansicht bei den US-Aktionären. Wait and See.
Schönen Sommer allen,
Bannerman

[Bannerman]

Press Release Source: Covad Communications
http://biz.yahoo.com/bw/020905/50028_1.html

Covad Announces Wholesale Service Agreement With America Online to Provide Broadband Services
Thursday September 5, 7:00 am ET


SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 5, 2002--Covad Communications (OTCBB:COVD - News) announced today that it has signed a five-year agreement with America Online, Inc. that provides America Online with the ability to purchase wholesale Digital Subscriber Line (DSL) consumer services throughout Covad`s nationwide network.
ADVERTISEMENT


America Online will now have access to Covad`s nationwide network, which currently covers more than 40 million U.S. homes and businesses and includes service in 94 of the top Metropolitan Statistical Areas (MSAs) across the United States. As a result, the agreement will increase the number of options available to America Online in offering broadband services to its members.

"The addition of America Online as a wholesale partner enhances our distribution channel enabling us to provide services to the largest Internet service provider in the country," said Charles E. Hoffman, Covad CEO and president. "It also gives America Online the flexibility and scalability of a single, national resource for their millions of customers who want to upgrade from dial-up to a high-speed, always on broadband connection."

In addition, Covad issued warrants to America Online to purchase a total of 3.5 million shares of Covad common stock, which is equal to approximately 1.5 percent of Covad`s currently outstanding common stock. America Online will have the option to purchase Covad`s common stock at exercise prices ranging from $1.06 to $5.00. Covad has determined that the warrants have an aggregate estimated value of approximately $3.5 million. Covad expects to record this value as a deferred customer incentive and charge it against revenue over the term of the service agreement.
-----------------------------------------------------------
AOL dürfte der größte Internetzugangsprovider der westlichen Welt sein. In den USA haben sie Direktmarketingmöglichkeiten zu 40 Millionen Internetkunden. AOL ist im Sinne der Wettbewerbsfähigkeit auf ein aktives Marketing seines Breitbandanschlußes angewiesen. Sollte Covad der Exklusivprovider für Breitband und AT&T für Kabel sein, wäre Covad automatisch in einer sehr komfortablen Rolle. AOL-Werbekampagnen (z.B. für Herr der Ringe) können sehr effektiv sein. Wenn die Zusammenarbeit gut klappt, könnte AOL auch ein Interesse haben, seinen Anteil an Covad von bald 1,5% zu erhöhen.

Ein Ansteigen der Nutzerzahlen im Konsumentenbereich ist zu erwarten. Problematisch könnte die Attraktivität von AOL für "fortgeschrittene" Nutzer sein, da AOLs proprietäre Software nicht sehr attraktiv ist. Trotz allem eine SEHR POSITIVE Nachricht, wie auch der Anstieg heute um 20% zeigt.

Grüße,
Bannerman

[Bannerman]

Reuters Company News
Covad signs pact with AT&T
Monday September 23, 11:47 am ET

http://biz.yahoo.com/rc/020923/tech_covad_att_1.html[/ulr]
CHICAGO, Sept 23 (Reuters) - Covad Communications Group Inc. (OTC BB:COVD.OB - News), which provides high-speed Internet access, on Monday said it signed an agreement with AT&T Corp. (NYSE:T - News) giving the long-distance telephone and cable giant an option to purchase certain Covad services.

The agreement extends for three years, according to a filing with the U.S. Securities and Exchange Commission by Santa Clara, California-based Covad, which emerged from bankruptcy last year.

Further details of the deal, signed last week, were not provided.

Covad already has deals with EarthLink Inc. (NasdaqNM:ELNK - News), SBC Communications Inc. (NYSE:SBC - News), Prodigy, Sprint Corp. (NYSE:FON - News) and AOL Time Warner Inc. (NYSE:AOL - News), according to a report last week by Kaufman Bros. analyst Vik Grover. He expects the deals to contribute to revenue in the fourth quarter and more substantially in the 2003 first half.

Covad shares were up 15 cents, or 10 percent, at $1.65 in morning over-the-counter bulletin board trading.
------------------------------------------------------
OK, die Deals sind jetzt geschlossen. Jetzt mal schauen, wie sie sich in bare Münze wandeln. Bin optimistisch." target="_blank" rel="nofollow ugc noopener">http://biz.yahoo.com/rc/020923/tech_covad_att_1.html[/ulr]
CHICAGO, Sept 23 (Reuters) - Covad Communications Group Inc. (OTC BB:COVD.OB - News), which provides high-speed Internet access, on Monday said it signed an agreement with AT&T Corp. (NYSE:T - News) giving the long-distance telephone and cable giant an option to purchase certain Covad services.

The agreement extends for three years, according to a filing with the U.S. Securities and Exchange Commission by Santa Clara, California-based Covad, which emerged from bankruptcy last year.

Further details of the deal, signed last week, were not provided.

Covad already has deals with EarthLink Inc. (NasdaqNM:ELNK - News), SBC Communications Inc. (NYSE:SBC - News), Prodigy, Sprint Corp. (NYSE:FON - News) and AOL Time Warner Inc. (NYSE:AOL - News), according to a report last week by Kaufman Bros. analyst Vik Grover. He expects the deals to contribute to revenue in the fourth quarter and more substantially in the 2003 first half.

Covad shares were up 15 cents, or 10 percent, at $1.65 in morning over-the-counter bulletin board trading.
------------------------------------------------------
OK, die Deals sind jetzt geschlossen. Jetzt mal schauen, wie sie sich in bare Münze wandeln. Bin optimistisch.

[Bannerman]

Press Release Source: Covad Communications
http://biz.yahoo.com/bw/021106/60409_1.htm

Covad Communications Group Announces Third Quarter and Nine-month Results
Wednesday November 6, 4:12 pm ET
- Gross Margin Increases to 29.2% versus 23.6% in Second Quarter - - Company Signs New Wholesale Partners during Quarter -


SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 6, 2002-- Covad Communications Group, Inc. (OTCBB:COVD - News) today reported results for the third quarter and nine months ended September 30, 2002. Revenue was in line with guidance at $96.2 million and EBITDA was ahead of guidance at a loss of $14.7 million. Gross margin grew to 29.2 percent from 23.6 percent for the second quarter of 2002. Net loss was $51.7 million or $0.23 per share. Cash and investment balances, including restricted cash, as of September 30, 2002 were $228.7 million, representing a net cash usage of $17.1 million for the quarter. Line count increased to approximately 359,000 during the third quarter.
"We are executing our plan and believe that we turned the corner on line count during the third quarter. We continue to focus on controlling costs, prudent use of cash, and marketing and sales programs that will drive demand for broadband services and increase Covad sales," said Charles Hoffman, Covad president and CEO. "We are strengthening our distribution channels as evidenced by the wholesale agreements signed during the quarter and our direct channel performance continues to be strong. Our new marketing programs are beginning to show results and we believe the awareness created by our campaigns will have a lasting impact on our business and will continue to generate greater recognition of the benefits of broadband services in the marketplace."

Highlights

Covad`s direct channel continued to grow. The number of direct lines grew quarter over quarter by 18 percent and now represents approximately nine percent of total lines in service and over 14 percent of total company revenues.
Covad continued the extension of its network, expanding coverage in the current 94 Metropolitan Statistical Areas (MSAs) served, and ending the third quarter with approximately 1750 central offices in service.
Covad redesigned its Alliance Program, which now has over 700 affiliates selling Covad DSL services across the country.
Wholesale partnerships:

America Online penned a five-year agreement providing it with the ability to purchase wholesale DSL consumer services throughout Covad`s nationwide network. Covad anticipates it will begin to receive orders in the fourth quarter of 2002.
Sprint signed an agreement to distribute Covad`s DSL access services in selected markets to Sprint`s business customers. Sprint began placing orders in August of 2002.
Expanded relationship with EarthLink to include additional consumer services that Covad expects EarthLink will begin offering late in the fourth quarter of 2002.
Launched the "Popularizing Broadband" campaign focused on programs, promotions and advertising to promote Covad services and educate consumers about the benefits of broadband access:

Launched the "Power to the People" TV campaign in San Francisco and Washington DC to increase consumer awareness of Covad`s direct broadband Internet access services.
Commenced direct small business marketing in select markets with print and radio campaigns, which are expected to continue into the holiday season.
Launched introductory rates for our TeleSurfer services that are competitive with dial-up rates.
Hoffman continued, "During the fourth quarter, we will continue building brand recognition in the marketplace, while also focusing on gross margin improvement and churn management. The marketing campaign for our direct business will target small business customers who tend to generate the best margins. We are working extensively with our wholesale partners to develop programs that will generate line growth and reduce churn. In both distribution channels, we are showing modest improvement in churn, which continues to be a major focus for us."

Operating Statistics

Average revenue per unit (ARPU) remained solid at approximately $61.
The quarter-end aggregate unrestricted and restricted cash, cash equivalents and short-term investments balances of $228.7 million reflected capital expenditures of approximately $5.1 million and lower than expected net cash usage of $17.1 million.
Line count reached approximately 359,000 as of September 30, 2002.
Churn during the quarter was approximately four percent.
Business subscribers represented 49 percent of line count and the consumer service represented 51 percent, a slight shift from an even mix last quarter.
Approximately nine percent of Covad`s total lines are served through resellers for whom Covad recognizes revenue only when it is paid, down from approximately 11 percent at the end of the second quarter of 2002.
Third Quarter Financial Results

Revenue for the quarter ended September 30, 2002 was $96.2 million, an improvement of over 13 percent when compared to $84.8 million for the third quarter ended September 30, 2001, and down slightly from $97.7 million for the quarter ended June 30, 2002. The company`s wholesale channel contributed $82.3 million or 85.6 percent of revenue while the direct channel contributed $13.9 million or 14.4 percent of revenue during the quarter ended September 30, 2002.

Network and product costs were $68.1 million for the third quarter of 2002, a 34.1 percent decrease from $103.3 million for the third quarter of 2001, and an 8.8 percent decrease from $74.7 million for the second quarter of 2002. For the third quarter of 2002, gross margin was 29.2 percent, an increase from negative 21.8 percent from the third quarter one year ago and an increase from 23.6 percent for the quarter ended June 30, 2002.

Sales, marketing, general and administrative expenses were $42.6 million for the third quarter of 2002, compared to $46.6 million for the third quarter of 2001 and $35.4 million for the second quarter of 2002. The increase from the second to the third quarter is largely attributable to the company`s launch of its "Popularizing Broadband" campaign.

EBITDA for the quarter ended September 30, 2002, was a loss of $14.7 million, compared to a loss of $70.2 million for the quarter ended September 30, 2001 and a loss of $7.3 million for the quarter ended June 30, 2002. The increase in EBITDA loss from the second to the third quarter also reflects the increase in marketing expenses in the third quarter as well an increase in non-cash litigation-related expenses, offset by the improvement in network and product costs described above. Operating loss for the third quarter of 2002 was $51.9 million, compared to $108.1 million in the third quarter of 2001 and $39.5 million in the second quarter of 2002.

Covad`s net loss for the third quarter of 2002 was $51.7 million or $0.23 per share, compared to a net loss of $139.7 million or $0.79 per share for the third quarter of 2001, and a net loss of $40.8 million or $0.19 per share for the second quarter ended June 30, 2002. The net loss for the three months ended September 30, 2002 includes charges that should have been recorded in prior periods. These charges consist of additional depreciation expense of $9.6 million related to changes in Covad`s network configuration, which necessitated a reduction in the remaining estimated useful lives of certain assets, and a charge to network and product costs of $1.2 million related to the capitalization of certain network and product costs that should have been expensed.

Mark Richman, Covad`s chief financial officer, stated, "During the quarter, we devoted resources to our marketing programs as reflected by the increase in sales, marketing, general and administrative expenses for the quarter. We anticipate our marketing investments will generate continued line count growth in the fourth quarter, with revenue improvements to begin in the first quarter 2003. We continue to maintain a cost discipline that allows us to focus resources on funding growth."

Year-to-date Financial Results

Revenue for the nine months ended September 30, 2002 was $295.6 million, up from $243.1 million for the nine months ended September 30, 2001. The company`s wholesale channel contributed $254.3 million or 86.0 percent of revenue while the direct channel contributed $41.4 million or 14.0 percent of revenue during the first nine months of 2002.

Network and product costs were $231.6 million for the nine months ended September 30, 2002, down from $359.9 million for the comparable period in 2001. Sales, marketing, general and administrative costs were $116.6 million, down from $168.7 million for the same period in 2001.

EBITDA loss was $43.9 million for the nine months ended September 30, 2002, compared to a loss of $311.5 million in the same period in 2001. EBITDA loss for the nine months ended September 30, 2002, includes a $9.0 million non-cash recovery for litigation expenses, while the EBITDA loss for the comparable period in 2001 included $25.5 million of expenses related to restructuring, asset impairment and litigation. Covad`s net loss for the nine months ended September 30, 2002 was $149.3 million or $0.68 per share, compared to the net loss of $513.7 million or $2.94 per share for the nine months ended September 30, 2001.

Business Outlook

Covad currently expects revenue for the fourth quarter to be in a range of $92 million to $95 million with continued subscriber growth. The results for the first nine months of 2002 include revenues from certain cash basis customers for services provided and payments made in prior periods that are not anticipated during the fourth quarter of 2002. For the fourth quarter of 2002, the company expects EBITDA loss to be in a range of $25 million to $30 million and cash usage to be approximately $30 million, including capital expenditures. Based on the results for the first nine months of 2002, the anticipated results for the fourth quarter and the related timing of subscriber growth, Covad expects to reach EBITDA positive in the second half of 2003 and cash flow positive, including cash for capital expenditures, in mid 2004. The change of approximately six months is largely related to slower than anticipated subscriber growth. Despite the change in guidance, Covad continues to believe that it has a fully funded business plan.
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Gab viele kritische Stimmen wegen der Ergebnisse. Ich fand jedoch positiv, daß die Betriebskosten gesenkt werden konnten und so jetzt mehr Geld für Werbung bleibt. Außerdem beginnen die neuen Partner wie Sprint und AOL erst im vierten Quartal mit ihren Aktivitäten, sind also noch kaum berücksichtigt. Go Covad! Grüße an alle!

[Bannerman]

Heute wird in USA durch die FCC (Federal Communication Commission) bekannt gegeben, ob die Zugangsregeln zum Ortsnetz dereguliert wird, also es den Neuen erschwert wird, Zugang zu den Systemen der Großen Bells zu behalten. Lange sah es nach einem erfolgreichen Lobbying der Großen (SBC, Verizon, QWest etc.) aus. In den letzten Tagen ist jedoch durchgesickert (LAtimes), daß sich 3 von 5 FCC-Commissionern GEGEN eine Aufhebung der Regulierung ausgesprochen haben, sich FCC-Chairman Powell mithin nicht durchsetzen konnte. Damit endet eine ca. 2 jährige Unsicherheit bezüglich Covads künftigen Zugangsrechten, wobei eigentlich schon seit einem halben Jahr aus den Änderungsvorschlägen hervorging, daß Covad kaum betroffen werden würde, da es nicht nur Reseller sondern auch ein facilities based provider mit eigener Ausrüstung ist.

Trotz allem ein Erfolg für mehr Wettbewerb, wie sich an den Kursen der betroffenen Unternehmen ablesen läßt.
Covad, ATT up
Verizon, SBC down.

Warten wir also auf die offizielle Verkündung der Entscheidung.

[Bannerman]

Es ist echt zum Heulen mit der Börse. Wenn ich das in den letzten 4 Jahren nicht bestimmt schon unzählige Male durchgemacht hätte, würde ich verzweifeln.

Na ja, mal sehen, was passiert, wenn der Nebel sich wieder lichtet. Dem gegenwärtigen Kurs nach hat sich gerade das Geschäftsmodell von Covad erledigt. Da ich das aber nicht glaube, warte ich ab.

Euer
Bannerman

[stephi06]

Es ist wirklich zum Verrücktwerden. Andauerend das Auf und Ab und letztendlich doch der Absturz. Naja, man ist ja warten gewöhnt. Ist die heute gefallenen Entscheidung eigentlich entgültig oder kann es sein, das Morgen einer ankommt und sagt mehr oder weniger "Ätsch", wir denken doch noch mal darüber nach ? Weiß jemand näheres ?

[Bannerman]

Mitschrift der Investorenkonferenz von Thomas Weisel & Partners letzte Woche, vor dem spektakulären Ausbruch von 70 US Cent auf 110 US Cent

Moderator:
I`m Ned Zacker, and I am the telecom services analyst at
Thomas Weisel partners, and I`d like to welcome everybody
to our presentations in .. this afternoon on .. aah .. with
Covad Communications .. and with .. with us today is
Charlie Hoffman .. who is the firm`s CEO, and .. aah .. Mark
Richman who is the firm`s Chief Financial Officer. I`d like
to thank you gentlemen, very much ..

Hoffman:
well thank you ..

Moderator:
for making time to come to to see us.
And I`ve got to cut right to the chase here as (mirth in voice) far as
regulatory environment`s concerned. As we all (laughing) know, its
seems like the FCC temporarily lost its mind about 3 months ago in
trying to articulate a new telecom policy which was universally
criticized by opponents and proponent. Everybody.
Nobody seemed to be happy with this thing at the end of the day. so
I`d love to have you, explain to us, your perspective as it pertains
to Covad .. and in particular there was one ..
aspect, line-sharing, that was .. it seems .it was particularly
negative for Covad and those that are working with the RBOCs and in
using their lines to provide service. So I`d love to have you give us
your perspective on that, if you`d start there.

Hoffman:
Sure. The most interesting thing was the illogical. nature of the
decision, because the states can determine whether or not UNE-P is
provisioned in that state, but not the UNE-L line-sharing, so it made
no sense whatsoever and I think the reaction from the Bells, right
away surprised Commissioner Martin. The Democrats knew that they had
sacrificed line-sharing for political purposes, in order to get UNE-P
that they were interested in. I think Kevin Martin was surprised at
the reaction. He reached out to us the very next day Feb 21st with
ideas on how this mpact could be mitigated. So we continued to
negotiate with him gosh last two months about once a week. Last week I
saw him once, our General Counsel saw him once he has asked us not to
speculate and reveal the content of those discussions. Its VERY
political its (laughs) .politics is everything in this thing, its not
about competition or customers or becoming ..

Moderator:
Because 4 of the commissioner were not really in favor of getting rid
of line-sharing, cause it was a reasonable way of helping competition
along.

Hoffman:
That`s right. And many states, as you`ve probably seen have come out
and said "WAIT a minute" .. you can`t take away competition in our
state. So I think the things that are .. are likely to happen is that
the transition rules are very important to us. How long any transition
will take. So we are talking to `em about that. We`re talking about
grandfathering current customers we don`t .. want have all consumer
customers get a rate increase courtesy of the Government, and the
state involvement is still an open issue and so .. it is difficult to
speculate on what might come out, because of the political nature of
it, but you`re right, everybody thinks it was a mistake, except
Commissioner Martin.

Moderator:
but he is at least softening his position a little bit.

Hoffman:
He is not softening his position on being against "free line-sharing".
He kept talking about "this shouldn`t be free", and in fact our
average price is about 5 dollars its not free. But he was under the
mistaken impression that we got it for free and so I think there will
be some softening of the rules, but it`s difficult to speculate

Moderator:
But let`s talk generically, in terms of what things at the margin
could the FCC, or the staff do to help with you without the bogie of
throwing out the concept of Kevin Martin`s idea "let`s reduce (?) the
ability for people to do line-sharing."

Hoffman:
We of course, have already talked to all the Bells about what kind of
commercial deals we could have we`d much rather have a long-term
commercial deal with one of the Bells than .. subject to the whims of
the FCC. All 4 of the Bells have shown interest in that. All 4 also
said "well till the rules come out we don`t know what to do here" so
everything is kinda on hold until after that so its a question of how
long do we have to negotiate so that we can stay at current prices
until we come to deal with the Bells how long our existing customers
are allowed to stay at current rates and what state involvement is.
Its basically those 3 things are on the table.

Moderator:
.. those one more time.

Hoffman:
OK, the grandfathering of existing customers at current rates current
rates remaining for a period of time while we negotiate with the Bells
and the level of state involvement.

Moderator:
Terrific. Any other questions from the audience on the regulatory
aspects before we move on to other stuff anybody? .. There`s one in
the back, go ahead.

Audience:
mumble mumble

Questioner:
so the timing in terms of when they might actually finish this 500 to
1000 page document.

Hoffman:
Yeah, Commissioner Martin last week said it was 500 pages and it would
be at end of May. the number two guy in the Common Carrier Bureau said
it is 800 pages and it`d be at the end of June.

Moderator:
Was it more consistent with what we`ve been hearing ..

Hoffman:
Yeah.

Moderator:
in terms of the timing standpoint.

Hoffman:
The way it works is that the staff writes it up. It goes to all 5
officers, they do their headups independently and they send it back.
So the quality of the document (you know how far they are apart from
one another) is really important. And then another draft goes back, so
it`s a very inefficient process.

Moderator:
Let`s shift gears a little bit and talk. I`d like to have you to run
through a situation analysis of Covad. Bring us up to speed. Many of
the investors in the room may have lost track of what the company is
and where it stands at this particular point in time. And Charlie, if
you`d focus on .. you know sort of the bigger picture. Global aspects
of what`s happening at the firm. And let Mark talk about the finances
that would be terrific, so ..

Hoffman:
Sure. Yeah, I`ll start .. we`re the only nationwide DSL provider.
We`re in 96 markets throughout the U.S. and 35 states. Have a
world-class operating support system, so it`s all automated, it`s one
of our mantras is being easy to do business for our customers. so that
that`s kind of our niche. We went through a financial restructuring
that Mark can talk to you about. but we emerged strong financially.
And went after strategic partners. As you probably know we`ve been
largely a wholesale provider of DSL throughout our history in addition
to Earthlink our best and biggest customer, we were able to sign up
last year AOL, AT&T Consumer, AT&T Worldnet and Sprint. and then of
course we have a bunch of others, we have like 1600 ISP partners, the
next biggest being Speakeasy, Megapath, XO, UUNET, you know, pretty
much everybody uses us. so we`ve been very financially disciplined
since our reemergence. We have cut our costs dramatically, have added
new partners and have had excellent growth. Our Q4 things started
looking good and then, T1 ( Q1 ?) was a record month (month ?) in many
ways, so that should continue, so Mark you want to do the ..

Richman:
We have a very strong balance sheet. The only debt we have on our
books today is a 50M dollar loan that we got from SBC that came out of
bankruptcy as part of the restructuring that that we completed at the
end of 2001. So we ended the last quarter with a 178M dollars in the
bank, and our burn rate in Q1 of this year was about 27M up from 24M
in Q4, and then prior to that was about 16M a quarter. So we the last
two quarters we`ve actually tripled our CapEx. We`re spent over 24M
over the last two quarters, compared to our run rate that was about 4
and a half million prior to that. So we did that for some investment
reasons that we had for our network. Specifically around and for our
need to augment our network.. Level 3 access to our customer base is
one. So our cash burn is the one that`s gone up but however its been
as a result of proper investment activity. So, with a more normalized
cash burn which is going to be closer to the low 20s, where we are
today where we have 178M dollars in the bank and again we have given
guidance there`s a good cash flow positive around the middle of 2004.
We feel we have enough money in the bank to be fully funded with
adequate cushion.

Moderator:
What can go wrong in that scenario aside from not enough in the way of
demand. You feel that you have a pretty good control or that you have
an understanding of what the costs are as you add any additional
customers.

Richman:
Yeah, we did a really good job in the last couple of years of really
getting on top of our cost structure. Cause one of the reasons I
wanted to mention the cash burn and why it went up, it had nothing to
do with our cost structure getting out of line. In fact, if you look
at our SG&A over the last few quarters, it has gone down. So we`ve
been able to improve over overhead that we have to cover every
quarter. And then to keep pressing now in order to get the revenue
line up. So, with these new partnerships that we have in place, which
really only have come into fruition over the last couple of quarters,
as Charlie just mentioned, we feel that we are in a very prime
position to get the revenue growth that we need to be able to get to
cash positive in the time-frame that we discussed.

Moderator:
So they have only been up and these partnerships have only been about
a couple of quarters or so?

Richman:
AOL`s just kicking in now, to be honest with you, it`s been a great
partner. AT&T in the consumer side is really just getting going.
We`re talking to them maybe we`ll get to the point where we can grab
great line-splitting opportunities down the road in a bundled product.
So there`s a lot of things that are in terms of market opportunities
that we feel can help us strike the revenue number.

00:10:00

Moderator:
So those are just getting to kick in and you added about 35,000 plus
that you announced, as far as your results in the first quarter. How
can we get after how much improvement we can see on the line-count
increases out of more mature partnership arrangements.

Hoffman:
Let me address that. It`s about revenue growth more than it is
line-count. Line-count will depend a bit on the line-sharing rules
that come out. Let`s take an AOL who is giving us volume similar to
Earthlink today. That`s great, but that`s mostly line-shared loops and
the company will have to shift, depending on the transition period to
a couple of things.
One is more of a business segment focus. Most of our revenues brought
in by business were very focused on a small business segment. Our
direct business is totally focused on small business (direct
residential ?), and that`s kind of been our traditional sweet spot, in
what we innovate in. . Line-splitting as Mark mentioned gives us the
potential to be part of these large brand-name partners bundles,
because they sell a local/long-distance bundle, their data portion
will be Covad. So that`s substituting perhaps if we if we do
eventually get out of the line-sharing business in consumer we`ll have
other things to substitute there. So we`ve planned for the worst case
scenario, and likely as Gary Betty said earlier, it`s not likely that
we`ll have to kick in that plan.

Moderator:
Mark, you mentioned earlier that you tripled your investment, your
Capital Expenditure Budget. Where are you spending the money. What
parts of the network are you building, where you feel you can get the
most amount of operating leverage?

Richman:
The main reason was that our customer base has really gone from where
we were providing the layer 2 access, handing it over to their network
and they were providing the internet part. And where its gone today
is we`re going further down the value chain to our customer base, not
particularly to our strategic partners, so that we`re providing the
layer 3 access. We had to augment our network to put in these
Internet gateway points of presence. And so that was a big part of it.
And then we increased our router capacity. But again we have north of
1800 COs that have been built. The capacity of that network, with all
those DSLAMs is again about a 4M-subscriber capacity.

Moderator:
Versus how many ..

Richman:
Versus 416,000 as of Q1 (381,000 + 35,000)

Moderator:
So plenty of capacity ..

Richman:
So plenty of room .. and the important message there is as we fill
that network, we truly do get tremendous economies of scale, operating
leverage, because it`s been built so you know adding subscribers is
going to be a big part of our opportunity to get to cash positive.

Hoffman:
And we also did a partnership with New Edge Technologies, which is 600
Central Offices in the Tier 2 markets throughout the country. So
really from our customer standpoint, we now serve 2300 Central Offices
throughout the country, so its a much broader footprint, so our
customers won`t have to ..

Moderator:
Have you quantified how much of the small and medium-sized business
world you can reach from those 2300 COs.

Richman:
Probably about 5M.

Hoffman:
5M additional.

Richman:
additional

Hoffman:
So about 45M households, in the U.S. small businesses.

Moderator:
Let`s shift the gears again just a little bit. I`d love to hear your
perspective on moving from the micro, what`s going on in Covad, to the
macro. What`s happening in the telecom business overall. You both have
been in the telecom business. Have lots of experience.
We`d love to hear you .. opine on you know where is this all going,
wireless, wireline, wired. give us some sense of where you think the
world`s going to end up in 3, 4, 5 years.

Hoffman:
Sure. I`ll start. (Hoffman and Richman laugh a bit). It`s unfortunate
the FCC missed the chance to add some certainty to the industry,
instead of adding some certainty that kinda created chaos. It`s
difficult to do any deal, for example with ILECs, these days because
they don`t know what the rules are going to be. The AT&T and MCIs of
the world, have some certainty for the next 3 years, until the next
Triennial Review. So they`re aggressively moving ahead with UNE-P and
selling the bundles. But that could change too. So its just a mess
that they have created. We think the market is really the best ..
place for all that to work out. And if the FCC would get out of the
way, we could all just do deals together. But the very interesting
thing, everyone focuses on the negative for Covad, but on the
Triennial Review the positive is the preservation of UNE-P, and on the
way AT&T and MCI as partners, but, all the other guys who now have a
new lease on life. Who are selling voice bundles throughout the
country who need a data partner who wants to be able to compete in
that space.
So, lot`s of partnerships are being developed. The other interesting
thing has been everybody now.knows who the enemy is. We were on a
conference call earlier where we heard a partner say "well we all know
who the enemy is and we all must need to work together, against the
Bells". So, I think the CLEC community, the IXCs are all . partnering
together to come with compelling offers against the Bell companies and
all that competition is great for consumers and great for the market
so ..

Moderator:
Well, if the FCC gets out of the way, will people do deals. Will
the Bells, would the Bells cooperate, I guess would be a reasonable
question follow-on ..

Hoffman:
Sure, the Bells have to cooperate under the rules. They`re certainly
interested in selling second lines, and then whatever AT&T and a COVD
do with the second line is our business. So, the Bells have to
cooperate, we still have the 1996 Telecom Act in place, so until
Congress changes the law the Bells have to cooperate.

Moderator:
Mark, any thoughts on the big picture.

Richman:
Yeah, works as well you know .. you talk about new and different
technologies, whether. the whole wireless strategy is going to work
over time. That`s something that we`re looking at today, for the
company to have a view 2 years down the road. But personally, do I
know whether a hotspot or a hot-zone technology is going to be one of
the way to get .to the end-user. You know, possibly, and I think we
need to be prepared to to have partners which is what we want to do
again. To have strategic alliances that will put us in position to be
able to expand.

Moderator:
Are you.

Richman: or a last-mile capability which is going to be important over
time.

Moderator:
Are you thinking of doing any strategic planning with regard to
wireless at this point, in terms of how you might reset (?)last-mile..
.

Richman:
I think we are researching it now.

Hoffman:
Yeah, Cometa, which is that IBM, AT&T, Intel consortium doing this.
Because of our AT&T relationship with the guys connecting all those
hotspots to the Internet.
and lots of other people in this business and what`s the problem is no
one has figured out how they`re going to make any money at this. So us
being an Internet connection is really not that big of a deal. So the
question is how do you convert hotspots and hot-zones into into
profits is still an unknown in my view.

Moderator:
Is WiFi any part of what you all are helping businesses in terms of
extending Internet access.

Hoffman:
(pause) Yes.

Moderator:
So you`re helping them install WiFi equipment to our ..

Hoffman:
It`s a way of doing that, yeah . We are connecting them
to the internet.

Moderator:
Ok.

Hoffman:
WiFi`s hotspot has to have a connection to the internet.

Moderator:
And that`s where your main .. (all 3 speaking)

Richman:
Backhaul aggregator for those.

Hoffman:
the internet.

Moderator:
Ken ..

Richman:
Uhh ..

Moderator:
the .. I`m sorry do you want to finish there ..

Richman:
Go ahead ..

Moderator:
If you have questions in the audience, please let us know
we`d love to take them. There one right in front ?


00:17:40

AUDIENCE QUESTIONS

Audience:
(low volume) some of the key assumptions that model issue that you
provide tell us about those subscribers whatever kinds of companies
you can ..

Richman:
I guess, again if you look at what you know our cash burn is today,
and you look at a margin contribution coming from us in our
subscriber base today, with an ARPU of about $60, that margin
contribution today, on a conservative side is 50-60%. So based upon
our ability to maintain that ARPU, you could look at the growth that
we would need to be able to get to EBITDA positive and cash-flow
positive.

Audience:
(unintelligible) .. margin ..

Richman:
Margins on that incremental ARPU.

Hoffman:
Right.

Richman:
I think that that`s probably the key measure for you.

Audience:
(low volume) What`s got to get over ..

Richman:
Well again I think about giving any specific .. the number to stay (?)
.. is cash burn .. again is inflated, because we have that additional
CapEx, so that number should be lower.

Audience:
(word or two)

Richman:
I think at at a steady state that`s a better way to go, so how much
additional line-growth do we need at those ARPUs that we have at a
blended rate today.

Audience:
Well, whereas "set to mesk" (?) gets pretty simple at the point
in the output.

Moderator:
We have a question right here ?

Audience:
How much of the line base is "structured" to use line-sharing, and
would "upset if you ask bottom up" (?) ..

Richman:
It is about 50-50 today.

Hoffman:
Yes, that`s lines, not revenues little less than that.

Richman:
Right, correct.

Audience:
"so its basically goes like this?

Richman:
That is correct, the consumer is mostly
line-sharing. pieces consumer .. correct ..

Audience:
So its lower ..

Richman:
Lower ARPU, lower with lower margin contribution. Again, its about 50
.. ah .. its about 35% of our revenue contribution, you know 50% of
lines. And the last percent (?) of margin contribution if ..

Audience:
If you go through that 50%, how many lines in all you`ve got there (?)

Richman:
About 200,000.

Audience:
.. of the 200,000 lines, how many are in states where .states. will
protect
you economically and supercede ..

Moderator:
Repeat .. (many talking) .. Charlie .. Repeat the question.

Richman:
existing consumer lines that we have today are in states, where we
think we would be protected by local state laws or tariffs.

Hoffman:
Over half. The reason I`m hesitating is the FCC should not, hopefully
would not interfere in that. Some states are worried about that. That
the FCC will give them guidance that they cannot have a state law that
mandates line sharing and sets the price. So that`s still a bit
uncertain. And we`ve had states like Texas and California say that
"hey Fed, you try it" you know you`re asking for a lawsuit if you
interfere in competition in our state, but that`s still an unknown.

Audience:
So what you`re saying that your people use states that would be
protected by state law where the PUC mandates line-sharing as opposed
to a unit (?) like New York where you might have a rate that would
supersede any FCC rates negotiated ..

Moderator:
we can`t repeat the question .. if you would .. Mark ..

Richman:
I guess the question is do we have anything at the local tariff level
that allows us to preserve line-sharing even if the FCC comes out and
the answer to that really is no, because in our agreements with the
ILECs is that if there is a change in law, it will be .. it will
broker (?) to the interconnect agreements that we have with them. So,
I think the key thing in Charlie mentioned is that some of these
states are ready today have as effective a law that line-sharing is
going to be preserved, If the FCC at a federal level mandates that
line-sharing does not need to be preserved, then its up to negotiate .
a favorable rate with the Bell companies. Because it will supercede
the local law.

Moderator:
There is a question right down here in front. I will come back to you
in a second.

Audience:
So, you mentioned that .. uhh .. (unintelligible) revenue .. give us
a sense where the ..

Hoffman:
Sure, but the question is whether value-added services are rate
introducing to drive up ARPU. On the direct side and the way we do
product development is we do it typically for one of our larger
partners at the request of an AT&T or an Earthlink or a Sprint. and
then we roll it out to our direct business as well. The most recent
product is Frame Relay on behalf of Sprint .. Sprint has introduced on
a nationwide basis our Frame over DSL offering and so we will be doing
that for direct as well. We did a host of services offering for our
direct business a few months ago. So we will continue to innovate in
the in the small business and our T-1`s are selling quite well.

Moderator:
Anything besides Frame ?

Richman:
Uh .. in the most recent (?)

Moderator:
As far as the product innovation side.

Richman:
Well we also have a VPN, managed security service parts as well, with
a firewall. So we do have a lot of our product developed which has
really focused on that small very small business sector which is a
sweet spot for the company and it is a higher ARPU.

Moderator:
How much would you think and what would you pick up on average. By
selling some of those kinds of items.

Richman:
It`s tough to measure, because the it`s part of a bundled package. And
it`s tough to break it out at this point.

Moderator:
Ok. Question right here ?

Audience:
I was not very much excited about AOL`s line-sharing .. broadband
line-sharing is doesn`t change. Wonder if that`s true .. whether
that`s smooth. What happens to AOL?

Moderator:
What happens to the relationship with AOL if in fact line-sharing
is eliminated?

Richman:
definitely impaired.

Hoffman:
Yeah we have gone to our other partners such as AT&T and said "would
you be interested in working with AOL" instead of AOL being left out
and left to deal with monopolies, would AT&T want to sell AOL as well?
And the answer is a resounding "Yes". So again, Covad is the data
portion of that AT&T bundle in that case also selling AOL. AOL`s
Broadband strategy is has been. an add on to whatever high speed
internet portion you have.

Audience:
Are you saying it doesn`t matter to be able to sign up AOL
customers right now .. I think you have (?)

Hoffman:
I don`t know the total at the moment but ..

Richman:
I total have ..

Audience:
Why don`t you know.

Hoffman:
Pardon me ?

Audience:
I would know if I was your ..

Richman:
It`s relatively small at this point, because they really only started
cranking up this quarter.. so it`s not as if it just means the number
is not in our database, but for Q2 they they`ve been the biggest add
customer that we have. The AOL opportunity is showing a lot of promise
at this point.

(some silence .. few seconds .. lost audio)

Audience:
(unintelligible) .. broadband .. broadband .. before we get ..

Richman:
Of the dial-up ?

Audience:
Yup.

Richman:
Let`s look at it a different way. Because, I think there`s a bigger
question in what you just asked. If if the consumer business data
alone, data standalone consumer business is impaired, because of
line-sharing, then less becomes our opportunity (?). And first of all,
we think there is going to be a reasonable enough transition period,
hopefully, that it just doesn`t turn off the second (?). The second
point is, with AT&T, the carrier relationship we have with AT&T having
2.8M customers today on their local/long-distance bundle and they want
to be able to bolt on a data product. With MCI, north of 3M on their
neighborhood (My Neighborhood) platform, that represents a huge
opportunity for us to go out and partner with those guys as well, and
we think the market`s heading that way. 30% of consumer DSL today is
is provided through a bundled offering. And that`s pretty significant
number. We think that number is going to go to north of 50% in the
fairly near term.
So for us to be able to play in that kind of growth at the bundled
product, the carriers are not gonna go to the Bell companies for this
product. They are the arch-enemies. The only alternative that they
have for DSL is Covad at this point. So one of the things that we
want to do is maybe to work with them to make sure they get cranked
up. And offering a a bundled offering that we we`re going to launch
with AT&T in July, and we are working on the rest of the
relationships, so we think there is still a tremendous opportunity for
growth on this bundled product, and by the way the economics are
virtually the same, between line-sharing and line-splitting.


00:26:30

Audience:
What`s the goal in one year on the bundled product ..

Moderator:
Goal in one year on the bundled product. I`m sorry, what else ?

Hoffman:
Yeah (meanwhile they are whispering among themselves ?)

Moderator:
Goal on the bundled product ..

Richman:
Yeah, we have not disclosed that.

Moderator:
Any other questions from the audience ? Go ahead right here.

Audience:
(unintelligible) How much of your.. target base is for consumer as
opposed to price impact on economics?

Moderator:
How much of the customer base is exposed potentially to the price cut
that Verizon just came out with. Did I get that right ?

Hoffman:
Yeah .. keep in mind that we are largely a wholesaler, so not that
much of our direct business .. would it`d be very small. The key for
us in that is we have to remain competitive with the Earthlinks of the
world, if you are in the last .. you think .. you heard that Gary
Betty`s (Earthlink`s CEO) whole thing that. Verizon will pass on that
lower wholesale price to him as well, and we have to stay competitive
in order to keep our flex (?) business. We are in far better shape
than Verizon to be able to do that. We`ve got our cost structure very
low, we are very efficient at this. As he mentioned, Verizon will
have a tough time explaining how they can give up that much margin,
when they have publicly
said they`re not making money off DSL.

Audience:
What is the current wholesale prices for your partners ?

Hoffman:
Well we`re certainly not going to tell you what our current wholesale
prices are, because they are varied by customer based on volume. So ..

Richman:
On average it`s about 33 dollars. That includes "hauling desk to desk"
(?)there is faster speed services as well, which are not going to be
impacted by their $34.95 product.

Moderator:
Before we end, I want to finish up with a question .which is, what
gets you guys excited about the company and what is going on in
telecom in three very
tough years in this space? You know, why should we believe that you
are going to become one of these internet superstars. That we have
heard from other companies where
their stocks have done really well after having a tough time.

Hoffman:
Yeah, from my standpoint what gets us excited one is our Covad
Broadband Solutions, our direct business . has gone from basically
zero to about 20% of our revenues in a in a year and a half. So we can
take care of the customer end to end. The churn is low, the margin is
good, we can really do that business well. On the big brand partner
side, of course we`ve got lots of great partners who are doing some
pretty exciting things and we`re a part of all that. So we take
advantage of the brand names of an AOL or an AT&T and let them do the
marketing, while we take care of the provisioning and all the back-end
stuff, so that works extremely well. And they certainly rely on us.

Richman:
Yeah, if you look at where our credit position is today and there is
roughly three types of customers.
One is the ISPs. The ISPs have been consumer focused. That`s really
their customer base. And that`s where we have the most competition,
because there`s going to have the cable network tethered to the net (?
) as well. So that`s what we`re talking about where it gets
competitive now with the line-sharing issue, but if you look at the
carrier customer base, which is going to be the AT&Ts, the MCIs and
Sprint. there`s this huge opportunity for us A) from bundling, and
B) we`re basically the only service provider that they can use cause
they are not going to go to the Bell companies.
That`s a great position to be in,,(clapping in background, perhaps
from another nearby presentation) so I think with these strategic
partners that we have, we still have a tremendous opportunity you
know, given what the transition period is going to look like for
line-sharing. And again the third customer we have are the direct
customers and we do a great job of focusing on the very small
business. And so I think we may have done a good job in developing
these channels, and they are going to provide opportunity going
forward.

Moderator:
Gentlemen, thank you very much. We appreciate your participation,
and would like to thank everybody for paying so close attention.

Hoffman:
Thank you.

[Bannerman]

Jau. Seit Anfang Juli sowohl die 38-Tage-Linie glatt durchschlagen, und jetzt zum ersten Mal seit vor über einem Jahr die 100-Tage-Linie genommen. Das sieht gut aus.

Wenn ichs schaffe, werde ich jetzt auch einmal Gewinne mitnehmen. Also, kaufen, kaufen.

Trotz allem ist COVAD weiterhin auf der Gewinnerstraße.

[Bannerman]

52W HIGH: New 52-Wk High for COVD @ $1.780 up9.88% [delayed]

Ridgeland, MS, AUG 05, 2003 (EventX/Knobias.com via COMTEX) -- This
is the 1st 52 WEEK HIGH alert for COVD in the past 7 calendar days.

The share price for Covad Communications Group Inc (OTCBB: COVD)
reached a new 52-week high today, trading at $1.780, up $0.160
(9.88%) from its previous close of $1.620.

The Company`s previous 52-week high of $1.760 was set 328 days ago on
September 11, 2002.

One year ago, the Company`s shares closed at $1.150. The price has
climbed more than 54 percent since then.

At the time of this alert, the stock had traded 4,155,500 shares via
1,275 trades, 82.45% above it`s 20day average of 2,277,640 shares.

This new 52-week high currently puts the stock:

56.41% above its 20day Moving Average of $1.138

66.46% above its 50day Moving Average of $1.069

93.82% above its 100day Moving Average of $0.918

[COVD]

Hallo !
Ich habe mal ein paar Fragen zu Covd, weil ich nicht mehr auf dem laufenden bin:
Was hat sich denn bei Covad neues ergeben, das es eine solche Erholung gibt ?
Ich bin seit den " Höhenflug-Zeiten" vor 3 Jahren dabei und bin überrascht über die Kursentwichlung.....
Hat sich die Zahlungsmoral der Covd-Kunden verbessert?
Ist Covd wieder für die NASDAQ Relistung geplant ?
Was ist mit der Klage gegen das Board of Directors von Covad ?
Was ist von den beiden Analystenempfehlungen der letzten Tage zu halten ?
Wie sehen Eure Kursziele(kurz/mittel und langfristig) aus ?
Danke für Eure Hilfe !
:O

[Bannerman]

[Bannerman]

Nehme Bezug auf mein Posting #224 in V.Macs Thread.

Derzeit sehe ich für mich noch keine Einstiegskurse. Ich wollte ja ursprünglich im März kaufen. Aber ich warte noch auf Kurse bei 1 €, also ca. 1,24 $.
Denke, die werden wir noch sehen, man muß nur Geduld haben. Im Covad-Board bei Yahoo sind einige schon sehr aufgebracht ob des Kursverfalls. Aber das ist ja normal bei Covad.

Ich gebe zu, daß ich letztes Jahr zu früh verkauft habe, bei 1,50€ und 2,41€. Aber bereut habe ich es nicht so sehr, es war ja schon deutlich besser als der lange Durchschnittspreis bei 1 $.

Gruß an alle, und ich hoffe, ihr habt auch mal ein paar Gewinne realisiert.

Verfolge das Board weiter.
Euer
Bannerman

[Bannerman]

So, ich bin wieder an Bord. Die für 1,71 € waren meine.

Jetzt bin ich wieder optimistisch. Ich muß eingestehen, dass ich vor dem Erreichen der 1 € Grenze zugelegt habe. Aber Covad gehts ja auch besser als vor einem Jahr.

In der letzten Zeit hatte ich mir überlegt, ob ich mir Optionsschein zulege, aber da weiß ich zuwenig drüber Bescheid. Und nachdem ich 2 mal glatt mit der Richtung des Index daneben gelegen habe, und ich zudem von der OS-Bewertung keine Ahnung habe, verlege ich mich lieber auf Covad.
Die sind ja wie ein OS ohne Laufzeitbegrenzung auf die NASDAQ. Bei übersichtlichen Kosten. Und wenn man mal ganz daneben liegt, braucht man nur 2 Jahre zu warten, bevor man seinen Einstiegskurs wiedersieht.

Gruß,
Bannerman

[Bannerman]

http://sanjose.bizjournals.com/sanjose/stories/2004/05/17/da…

2:26 PM PDT Monday
Covad rings up lower loss

San Jose-based broadband telecommunications seller Covad
Communications Group, Inc. says it posted a net loss of $13.5 million
or 6 cents per share on revenue of $108.5 million for its second
quarter ended March 31.

That compares to a net loss of $34.7 million or 16 cents per share on
revenue of $90.9 million in the year-earlier period.

Digital subscriber lines -- the heart of its sales efforts --
increased 24 percent year-over-year, from 417,000 in the first quarter
of 2003 to 516,000 in the first quarter of 2004, and decreased by
1,200 from the fourth quarter 2003.

"We are pleased with our financial performance in the first quarter of
2004," says Charles Hoffman, president and chief executive officer of
Covad in a written statement. "Our strategy has always been to grow
profitability and we continue to execute against it. Shifting partner
sales strategies resulted in a line count that did not meet our
expectations. However, we are taking steps with our partners to make
improvements in this area and to diversify our revenue."

------------------------
Covad reduziert die Verluste

Der in San Jose ansässige Breitband-Anbieter Covad Communications Group, Inc. Teilt mit, daß er im 2. Quartal einen Verlust von 13,5 Millionen $ oder 6 cents pro Aktie bei Einnahmen von 108,5 Millionen $ erzielte. Das Quartal endete am 31.03.04.
Dies ist zu vergleichen mit einem Netto-Verlust von 34,7 Millionen $ oder 16 cents pro Aktie bei Einnahmen von 90,9 Millionen $ im Vergleichsquartal des Vorjahres. Die Zahl der DSL-Anschlüsse, der Kern der Verkaufsanstrengungen, erhöhten sich um 24% im Vergleich zum Vorjahr, von 417.000 im ersten Quartal 2003 auf 516.000 im ersten Quartal 2004. Gleichzeitig nahmen sie um 1200 ab im Vergleich zum 4.Quartal 2003.

„Wir sind zufrieden mit unserem finanziellen Abschneiden im ersten Quartal 2004“, erklärte Charles Hoffman, Präsident und Vorstandsvorsitzender von Covad in einer schriftlichen Mitteilung. „Unsere Strategie war es immer, die Profitabilität zu erhöhen, und wir werden weiterhin auf dieses Ziel hinarbeiten. Das Verändern der Vertriebsstrategie mit unseren Partnern führte zu einer Zahl von DSL-Anschlüssen, die nicht unseren Erwartungen entsprach. Wir unternehmen jedoch Maßnahmen mit unseren Vertriebspartnern, um uns in diesem Bereich zu verbessern, und um unsere Einnahmen zu diversifizieren.“

[Bannerman]

CEO Charles Hoffman 3 Jahre dabei:

June 5, 2004 11:19am
Telephony


When Charlie Hoffman speaks at staff meetings, the room tends to fall
silent. His executives like to make joking comparisons to the E.F.
Hutton commercials of the 1980s — "When Charlie talks, people
listen." But the real reason the room quiets is because Hoffman
is
soft spoken. His voice barely carries beyond the conference table at
which he sits, and anyone sitting off to the side strains to catch
his words. He isn`t barking commands. He isn`t heavy-handedly passing
down nuggets of industry wisdom. He isn`t micromanaging the agenda.
In fact, one gets the impression he`s offering friendly advice on how
his executives should run Covad Communications. And if, during the
discussion, he gives an order or a direction, it`s probably the most
polite order you ever heard: "What I`d like to see is…" or
"I`d love
if we could…"

Hoffman is the opposite of what you`d expect from a crisis CEO —
one
hired to bring his company back from the financial brink. He doesn`t
have the abruptness of a typical post-bankruptcy CEO single-mindedly
focused on the bottom line. He certainly doesn`t come off as a
taskmaster whipping his company into shape. Hoffman`s subdued
demeanor may not fit any of the clichés for a crisis CEO, but most
significantly, those same traits make him a polar opposite to Covad`s
former CEO Robert Knowling. And the opposite of Knowling and his
vision of Covad was exactly what Covad needed to survive.

In his three years as CEO, Hoffman has presided over Covad`s
bankruptcy, he has reshaped the company`s basic business model
several times. As regulators change the rules by which Covad and
other CLECs must abide, Hoffman has shifted the company`s wholesale
data access strategy to direct sales and laid the foundation for
Covad to become a national voice-over-IP provider. But most
significantly, Hoffman has changed the culture of Covad. He has
transformed a company that was focused solely on technology and
growth to one focused on customers and revenue. After spending two
raucous years on Robert Knowling and his dreams of creating a world-
dominating broadband provider, Hoffman has brought Covad back down to
Earth.

Covad may be a tamer, humbler company under Hoffman, but it`s also
one that has managed to survive, a testament Covad`s competitors
Rhythms NetCommunications, NorthPoint Communications and hundreds of
other failed CLECs can`t make.

"We think we can be a substantial player without getting ahead of
ourselves," Hoffman said. "We may never be as big as a Bell,
but we
can be the face of competition in this industry."

When Hoffman publicly accepted the CEO job of Covad on June 5, 2001,
the first question that popped into the minds of his friends,
colleagues and a generally shocked industry was why the CEO of one of
the largest and most successful wireless operators would quit to take
over the reins of an ailing California CLEC on the verge of
bankruptcy.

There are a lot of reasons Hoffman, now 55, left Rogers AT&T
Wireless, depending on who and how you ask. Covad Executive Vice
President Pat Bennett, a long-time friend who has followed Hoffman
from company to company since 1992, postulates that the reason is
Rogers AT&T`s namesake itself, Ted Rogers. The Canadian cable and
communications magnate — who often draws parallels to an equally
colorful and audacious Ted in the U.S., Ted Turner — didn`t give
Hoffman the freedom he needed to run the company, Bennett said.
Rogers, known for his hands-on management — was willing to give
Hoffman free reign while it was languishing in fourth place in the
Canadian wireless market. But when Hoffman made it number one, he got
involved again. "Once Ted got everything he wanted, he became the
same old Ted again," Bennett said.

Hoffman gives myriad reasons, from "I felt I was becoming too
Canadian" to wanting to move to the more hospitable climes of
northern California. The reason Hoffman settles on most, though, is
the challenge of turning a company around. A lot of CEOs will talk
about the virtues of bailing out a troubled company, but Hoffman has
them beat. Bankruptcy is one thing, but Covad, like all CLECs, is
dealing with a constantly changing regulatory environment that bans
line sharing in one instance and redefines UNE-P in another. He
hasn`t just had to reinvent the company once, he`s done it — and
will
probably be forced to do it again — several times.

"I like turnaround situations," Hoffman said. "I was the
perfect
candidate for this job. If I couldn`t pull it off, I wouldn`t have
been in trouble financially."

Hoffman`s reputation for turnarounds far preceded his time at Covad
and Rogers AT&T. He spent 16 years at SBC Communications` wireless
division, where he gained a reputation as a turnaround artist. Every
two years, SBC would assign him to a new market, and he and his wife,
Maureen, a registered nurse Hoffman met in his hometown of St. Louis,
would pack up and move. First it was Philadelphia, then Boston, then
Washington/Baltimore. As soon as he made the under-performing market
profitable, they`d be off to Hoffman`s next assignment.

His final assignment was in Mexico City as director general for
TelCel, the wireless venture between TelMex and SBC. There, Hoffman
was advised to take different routes to work each day to foil any
kidnapping attempts, and his monthly late-evening meetings with
TelMex chairman and Mexican business tycoon Carlos "Slim"
Helu were
regularly held in Slim`s underground bunker, guarded by men with
automatic weapons.

The task he faced at Covad was vastly different than the turnarounds
he performed at SBC and even Rogers. He wasn`t taking over the ailing
division or market within a large cash-rich company. He was taking
over a company that was about to go into Chapter 11, and the fates of
Covad`s two main competitors, Rhythms and NorthPoint — both
companies
folded, selling their network assets to MCI and AT&T, respectively,
for mere pennies on the dollar spent building them — wasn`t
encouraging.

"When I got there it was much worse than I thought," Hoffman
said. "What surprised me was that almost every single department
seemed to be broken. They couldn`t even get a simple budget out. The
mere idea of operational discipline seemed foreign to the leadership
team. Even the employees were skeptical when I got there, especially
the engineering types. Covad has always been focused on technology,
and here I was talking about the customer."

Covad was a wunderkind of the 1996 Telecommunications Act. During its
heyday in the late 1990s, the company was enshrined as the perfect
example of a small carrier that could grow into a nationwide giant,
challenging the Baby Bells on their own turf in the new free-for-all
that was competitive telecom.

Originally Covad`s plans weren`t so grandiose. When former Intel
executives Chuck McMinn, Chuck Haas and Dhruv Khanna founded the
company in 1996, they imagined Covad as a privately owned regional
player, capitalizing on the boom and subsequent demand for high-speed
access in Silicon Valley and the San Francisco Bay Area. But the tech
boom had a way of transforming modest dreams into lofty ones. In
1998, Covad decided to go nationwide. Then-CEO McMinn stepped aside,
and the company conducted a search for the industry paragon who would
lead Covad into the future. Enter Robert Knowling, the charismatic,
outspoken and volatile former executive vice president of U S West.

If Covad had an appetite for grandeur, Knowling was the man to feed
it. He ran a technology and operations staff of 30,000 at U S West,
serving a customer base of 25 million straddling 14 states. The fact
that Covad had a few hundred employees and a handful of customers in
the Bay Area didn`t stop Knowling from thinking on the largest of
scales. Within a month of taking over as president and CEO, Knowling
launched data services in Covad`s second market, Los Angeles. A few
weeks later, he took Covad to Boston and New York. The following
January, Knowling led Covad through its IPO, raising $140 million in
cash. Additional offerings and note sales more than doubled that
capital, which Knowling dumped into new acquisitions and new builds.
He`d set the stage for a mammoth national expansion. In less than two
years, Covad would be in 98 of the 100 largest U.S. metropolitan
areas with access to nearly 50% of all business access lines in the
country.

His strategy didn`t end at either coast. In September 2000, barely a
month before Knowling resigned, Covad took out a 70% stake in Loop
Telecom, a business ISP in Spain. Knowling made no secret about his
ambitions for the tiny Silicon Valley start-up. Those ambitions could
be summed up in a short but telling statement he made to BusinessWeek
shortly before Covad`s collapse: "I plan to make Covad the
largest,
most pervasive broadband company in the world."

The hostility between Covad`s owners and its estranged CEO was the
thinnest of veiled secrets when Knowling resigned. Knowling didn`t
even give the obligatory quote about "pursuing other
opportunities"
when the press release hit the wires on Nov. 1, 2000, announcing that
McMinn would replace him as chairman and Frank Marshall as interim
CEO. But despite the messy aftermath, McMinn still credits Knowling
for his role in the company`s phenomenal growth during Covad`s boom
years.

"Bob wasn`t all bad," McMinn said. "He was right for the
company
during its growth when we had access to capital, when it was all
about growing quickly. He was the right person for the job, no
question. But he had never had to operate in an environment where
there was no cash. He wasn`t prepared for what happened."

What happened was that customers stopped paying their bills. The
first signs of the problem started showing up shortly after Covad`s
IPO. Several of its wholesale ISP customers began falling behind in
payments. The tech downfall was beginning its plummet in mid-2000 and
its effects were becoming readily apparent among smaller ISPs. Covad
continued to report the unpaid bills as revenue, but as the
delinquency became more of a problem, the revenue shortfalls began
eking into the company`s financial statements in the last half of the
year.

"We`d just had a great quarter," said Dave McMorrow, Covad`s
executive vice president of sales and the only member of the
company`s management team left from the boom years. "We had just
raised another half-billion dollars. We were surging forward. Then
some of our customers couldn`t make their payments. It didn`t seem
that big of a concern at first, but suddenly those customers just
weren`t there anymore."

At its third-quarter financial call, Covad reported $11.4 million in
uncollected revenue from nine delinquent customers. A few weeks
later, those numbers were revised to $22.8 million and 14 unpaid
accounts. By the end of the year Knowling was gone and Covad was owed
$40 million it would never see.

To attribute all of Covad`s woes to Knowling would be unfair and
inaccurate. If Knowling is to be faulted for not predicting the
telecom bust, then every telecom CEO is guilty of the same
shortcoming. Some critics have made Knowling out to be the fall guy,
scapegoated by Covad`s VC investors and not given the chance to
salvage the company`s business plan. Regardless of how much he was to
blame for Covad`s misfortunes, the board had had enough of Knowling`s
vision. The company was in dire financial straits. Its line counts
were multiplying — they`d surpassed 200,000 that year — but
its
revenues were quickly eroding. At the end of 2000 Covad was taking in
only $159 million in revenues, yet suffocating under a $1.44 billion
loss. It was carrying an additional $1.5 billion in debt, it`s stock
had been devalued 98% and it was about to file for bankruptcy. Covad
was fighting for survival. It needed cash and plenty of it. It needed
a new business strategy and new direction. What it needed most was a
new CEO.

What followed next was a wholesale purging of the ranks. Hoffman
claims the only person he actually fired was CFO Mark Perry, one of
the executives Knowling brought over from U S West. The rest, Hoffman
said, couldn`t hack the new discipline he imposed on the company and
left of their own accord. There is now not a single member of the
senior leadership team left at Covad from Knowling`s days as CEO.
Hoffman replaced them with a new management team, plucking from the
ranks of former executives at Rogers AT&T and SBC.

After getting his team in place, the first order of business was
steering the company through bankruptcy. Covad was walking a
precarious line. On one hand, Hoffman had to tell its bondholders
that the carrier couldn`t survive without massive debt relief. On the
other, Hoffman had to present a positive face to Covad`s customers to
prevent them from bolting to other providers.

Internally, Hoffman was shaking the company from top to bottom,
trying to smack some financial discipline and affect an overhaul of
the company`s core values in employees. Externally, Covad`s sales
force had to act like nothing was happening. The whole ordeal might
sound like a disaster in the making, but Hoffman pulled it off.

Covad entered bankruptcy on Aug. 15, 2001, and exited on Dec. 20,
2001, after executing a pre-negotiated Chapter 11 plan of
reorganization that has been emulated ever since as the model of
prepackaged bankruptcy. Covad retired most of its debt, returning
19¢
on the dollar to its bondholders.

Most significantly, however, Covad accomplished this without wiping
out its stockholders. Covad shares lost only 80% of their value. The
day Covad entered bankruptcy its shares were worth 49 cents apiece.
At the end of May, those shares were trading at $1.89 on Nasdaq`s
Over the Counter Bulletin Board.

Despite Hoffman`s successes, Covad is still not what you`d consider a
healthy and robust company. Hoffman has succeeded in changing the
philosophy and direction of the company. He`s shored up Covad`s major
weakness — its dependence on the fickle wholesale DSL market
— by
creating a direct sales channel for the company (27% of Covad`s
business today comes from direct sales). He has put most of the
company`s resources into small and medium business markets instead of
relying so heavily on consumer wholesale. At the end of the third
quarter, Covad had 295,000 consumer ADSL lines in service and 221,000
SDSL and T-1 business lines. Though consumer still accounts for 57%
of its total lines, 66% of all revenue comes from its small business
customers.

But despite those efforts, Covad still faces a volatile market and a
precarious regulatory environment. Hoffman likes challenge. It`s his
stated reason for taking the job in the first place, but even he
feels like he`s being bombarded with a few too many curve balls.

First, the FCC`s triennial review killed line sharing, the basis of
Covad`s wholesale from the beginning. Now, recent D.C. Court
decisions threaten to eliminate the unbundled network element
requirements from the Telecom Act entirely. Although Covad is a
facilities-based carrier that doesn`t depend on the UNE platform, its
wholesale customers do. Any threat to UNE-P threatens the line-
splitting business Covad grew to replace line sharing. Those
regulatory problems spurred partner MCI to drop its consumer local
service entirely, cutting Covad off from millions of potential data
customers. Furthermore, ISP partner AOL has stopped selling broadband
access altogether, drying up another major source of wholesale lines.

For the first time in its history, Covad reported a net line loss in
the first quarter. Covad lost 1200 wholesale consumer lines, all of
which Hoffman attributed to line losses from MCI and AOL. Ironically,
Covad`s revenues were up 19% year over year in the first quarter, and
even improved 3.3% over the fourth quarter of last year.

Covad is on track to go cash flow positive this quarter — one
quarter
earlier than it initially projected — and achieve its first net
profit a year from now, a feat that seemed almost unattainable two
years ago when Covad reported a $1.4 billion annual loss. The news of
line losses, however, didn`t stop Covad`s stock from dropping when
they were announced, and Hoffman spent most of May assuring its
institutional investors the company was still solvent. Ironically,
the company is being punished for losing lines and gaining revenue,
while in 2000 it was punished for racking up lines but losing revenue.

"We can handle almost anything the market throws at us,"
Hoffman
said. "I just wish they`d set the rules once and stick to
them."

The latest incarnation of Covad is that of a voice provider with its
acquisition of GoBeam this month. The move comes as a shock to many
as Covad has always been a militant data-only provider, but McMinn
points out that Covad was originally an acronym for Converged Voice
and Data. Voice was the plan all along. It has just taken a while to
settle on a technology. Hoffman has big plans for the new service,
projecting $80 million to $100 million in annual revenues and a
footprint of 100 markets by the end of 2005.

Basically Covad is relying on VoIP to buttress its traditional
wholesale base, just as it relied on direct sales. If Covad seems to
be putting a lot of stock into VoIP — its projections have it
accounting for almost a quarter of its overall revenues — it`s
because it has no other choice, said Brahm Eiley, a broadband analyst
for Convergence Consulting Group. Its bread-and-butter wholesale
business is under siege, and it has to make up the gap with new
services and new direct customers.

"This is a company that is betting heavily on voice over IP,"
Eiley
said. "It`s a highly competitive market, and Hoffman will have a
tough go at it. If anyone knows how to survive, though, it`s Covad.
They could pull a rabbit out of their hat. They`ve done it
before."

Hoffman doesn`t appear worried. He`s pulled numerous rabbits out of
his hat in the last three years — though he`d probably describe
it as
business acumen rather than optical illusion. He believes he`s built
a company that can tackle almost any change in business or
competitive environment. And despite his calm and conservative
demeanor, Hoffman exudes a definite pride for this company he`s kept
afloat and the obstacles he`s overcome.

Hoffman has never been one for overstatement. He`s never been one for
hype. He`s always positioned himself as the opposite of his
predecessor — always the realist. But lying deep inside there
lurks a
little bit of Knowling within him, a part of him that has big
ambitions for Covad. As Telephony concluded its last interview with
Hoffman for this article, he momentarily dropped his guard. "I
really
envision Covad as sort of an arms dealer for the telecom industry,
providing every service a carrier or business needs," Hoffman
said. "I think we can be a much, much larger company than we are
now.

[Bannerman]

Juchhuh! Jetzt endlich auch ein Listing in Frankfurt für Covad. Kommt endlich ein bißchen Konkurrenz in den Laden.
Mal schauen, ob sie jetzt den Spread ein wenig reduzieren, und ob mehr Umsatz hineinkommt.

[Bannerman]

Covad Communications Group Announces Second Quarter 2004 Results
Tuesday July 27, 4:00 pm ET
Reaches Cash-Flow Positive, Revenue Increases 16%, VoIP Services Network Ready in 56 Cities

SAN JOSE, Calif.--(BUSINESS WIRE)--July 27, 2004--Covad Communications Group, Inc. (OTCBB:COVD - News), a leading national provider of integrated voice and data communications, today reported revenue for the second quarter of 2004 of $107.3 million, a 16 percent increase over the $92.4 million reported in the second quarter of 2003, and a decrease of $1.2 million from the first quarter of 2004.

The company reported net loss for the second quarter of 2004 of $7.4 million, or $0.03 per share, as compared to a net loss of $27.3 million, or $0.12 per share in the second quarter of 2003, and a net loss of $13.5 million, or $0.06 per share for the first quarter of 2004. Loss from operations for the second quarter of 2004 was $6.7 million, compared to $26.2 million in the second quarter of 2003 and $12.9 million for the first quarter of 2004.

Cash, cash equivalent and short-term investment balances, including restricted cash and investments, increased by $2.7 million to $172.3 million in the second quarter of 2004 compared to $169.6 million in the first quarter of 2004. Second quarter cash flow included approximately $10.4 million of capital expenditures.

"We are pleased to achieve cash-flow positive this quarter as it demonstrates our disciplined approach to grow the company profitably," said Charles Hoffman, president and chief executive officer of Covad. "Critical to our continued growth is our ability to leverage our nationwide facilities-based broadband network. We are incorporating our Voice-over-Internet Protocol (VoIP) services into our network and have now launched in 56 cities.

"We plan to aggressively roll-out Voice over IP to 100 markets nationwide by the end of the year," Hoffman added. "This will give Covad the opportunity to strategically grow its revenue."

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2004 were $12.5 million as compared to a loss of $8.4 million in the second quarter of 2003 and a profit of $6.3 million in the first quarter of 2004. Refer to the Selected Financial Data, including note 2, for a reconciliation of this non-GAAP financial performance measure to the GAAP measure and other information.

The company`s wholesale subscribers contributed $78.5 million of revenue, or 73 percent, while direct subscribers contributed $28.8 million of revenue, or 27 percent. On June 30, 2004, Covad had approximately 440,800 wholesale and 73,600 direct lines in service, as compared to 394,900 wholesale and 58,600 direct lines in service reported in the second quarter of 2003 and 444,600 wholesale and 71,200 direct lines in service on March 31, 2004.

For the second quarter of 2004, broadband and VoIP subscription billings increased 15 percent to $87.5 million from $76.1 million reported in the second quarter of 2003, and decreased slightly from $89.6 million reported in the first quarter of 2004. Management uses broadband and VoIP subscription billings to evaluate the performance of its business and believes broadband subscription billings are a useful measure for investors as they represent a key indicator of the performance of the company`s core business. Refer to the Selected Financial Data, including Note 3, for additional information, including a reconciliation of this non-GAAP financial performance measure to the GAAP measure.

For the second quarter of 2004, gross margin was $44.6 million or 42 percent of revenue, as compared to 26 percent of revenue in the year-ago quarter, and 37 percent of revenue for the first quarter of 2004. Sales, marketing, general and administrative (SG&A) expenses were $31.9 million for the second quarter of 2004, as compared to $31.6 million in the year-ago quarter and $33.3 million for the first quarter of 2004.

Mark Richman, chief financial officer of Covad, said: "We are pleased with the financial results we have achieved to date, especially reaching cash-flow positive. Our balance sheet provides us with the flexibility to invest in growth opportunities going forward in the voice and data market."

Operating Statistics

* Digital subscriber lines increased 13 percent year-over-year, from 453,500 in the second quarter of 2003 to 514,400 in the second quarter of 2004, and decreased by 1,400 from the first quarter of 2004. Line count continues to be impacted by pricing pressures in the consumer broadband market.
* At the end of the second quarter, Covad had approximately 292,200 consumer and 222,200 business lines in service, representing approximately 56 percent and 44 percent of total lines respectively.
* Weighted Average Revenue per User (ARPU) was approximately $57 during the second quarter of 2004, a decrease from $58 in the first quarter of 2004. The decrease in ARPU is due to the pricing pressures in the consumer broadband market.
* Net customer disconnections, or churn, averaged approximately 3.6 percent in the second quarter of 2004, a decrease from 4.1 percent in the first quarter of 2004. Much of the churn decrease is due to the lower number of consumer installs over the past two quarters.

Business Outlook

Covad currently expects revenue for the third quarter of 2004 to be in the range of $104-108 million with flat subscriber line count growth. Broadband and VoIP subscription billings for the third quarter of 2004 are expected to be in the range of $86.5-90.5 million. With the aggressive nation-wide rollout of VoIP services primarily requiring investments in sales and marketing activities, for the third quarter of 2004, Covad expects its net loss to be in the range of $21-25 million, and generate an EBITDA loss in the range of $2-5 million. Net change in cash, cash equivalents and short-term investments, including restricted cash and investments, in the third quarter of 2004 is expected to be in the range of negative $10-15 million.

Recent Business Highlights

* Completed the close of the acquisition of GoBeam, Inc., a privately owned provider of Voice over Internet Protocol (VoIP) solutions to small- and medium-sized businesses.
* Covad is partnering with Netopia, Inc., a market leader in broadband equipment and software, to provide a turn-key, all-in-one wireless fidelity (Wi-Fi) and DSL network solution that enables customers to access Covad broadband wirelessly from nearly any location within a home or small business.
* Entered into a one-year agreement that will enable MetTel, an integrated communications provider, to bundle Covad`s Digital Subscriber Line (DSL) broadband services with its local and long distance service packages. MetTel currently serves customers in 11 states and plans to expand its coverage area to 30 states by the end of the first quarter 2005.
* Announced that Speakeasy will be its first broadband partner to offer Covad`s new dedicated-loop asymmetric digital subscriber line (ADSL) services to consumers and very small businesses on a nationwide basis.
* Announced a strategic relationship with WilTel Communications to provide its enterprise customers with more broadband access choices in the country`s top Metropolitan Statistical Areas (MSAs).
* Announced that it is supporting the launch of the new EarthLink High Speed 3.0 service, which is up to 70 times faster than a standard dial-up connection based on the average speed between a 28.8k and 56k.
-------------------------
So weit ich das sehe, keine Veränderung der Zahl der DSL-Anschlüsse, weiter reduzierte Verluste, evtl. neutrales
Ergebnis. Geschäft erweitert auf Internettelefonie. Fast 170 Millionen Dollar Reserven bei Quartalsverlust von 7 Mill. Dollar.

[Bannerman]

Published: August 12, 2004, 4:00 AM PDT
By Jim Hu
Staff Writer, CNET News.com

Kicked around for years by regulators and local phone giants,
broadband pioneer Covad is taking its future into its own hands.

Covad--one of the few start-ups to survive the telecom shakeout--on
Tuesday said it had begun selling Internet phone service to customers
in 42 cities. At first glance the announcement read like another
product release, but Covad`s entry into the VoIP (voice over Internet
Protocol) market underscores the company`s efforts to preserve its
future as its present business is threatened by an uncertain
regulatory landscape.

News.context

What`s new:
As broadband upstart Covad watches its federally enforced deal with
the Baby Bells unravel, it may have to find other ways to deliver
services--or other services to deliver.
Bottom line:
Internet telephony may be the ace Covad needs now that the Bells seem
to hold all the cards and its "destiny" is in danger.

More stories on broadband
Born from the Telecommunications Act of 1996, Covad has made a strong
run at selling broadband DSL access to consumers and small companies.
But much of this consumer business is in jeopardy because parts of
the Telecom Act are being dismantled.

"The problem for Covad is they`ve been a regulatory football," said
Scott Cleland, chief executive at market research firm Precursor
Group.

Covad`s rise, fall and resurgence mirror the convoluted course of the
nation`s telecommunications laws. The Telecom Act, which forced the
Baby Bell phone companies to lease their copper lines to start-ups at
regulated rates, allowed Covad to tap into the growing demand for
fast Internet access.

The Federal Communications Commission hoped the Telecom Act would
allow a hundred start-ups to blossom on the backs of the Baby Bells`
copper wire networks. But the Bells, which built these networks, were
not happy about it and complained to regulators that supporting these
start-ups hurt their businesses.

Eight years later, the pendulum is swinging favorably for the Bells,
a group that includes SBC Communications, Verizon Communications and
BellSouth. Many of the rules spelled out by the Telecom Act are in
preliminary stages of elimination. Most pressing for Covad is the
threat to pull back "line sharing" and to remove regulated lease
rates for third parties. If line sharing disappears, Covad would have
to hike prices for new DSL customers.

"Covad, like any company focused on copper, has no long-term future
in North America," said Albert Lin, an analyst at American Technology
Research. "If you`re not a (Baby Bell), I can`t see how you could
construct any business model that works."

"Given the shifting regulatory environment, the long-term (plan) is
to get more control over our own destiny."
--Charles Hoffman, CEO, Covad
The Bells are having their final say. Beginning in October, the local-
phone giants will no longer need to share their lines with broadband
resellers such as Covad, according to a regulatory filing by the
company in July. Instead, third parties must strike their own deals
with the Bells, which could drive up consumers` price for DSL, or
face having to purchase separate phone lines to resell, which
definitely would raise costs.

"We value our wholesale customers," SBC spokesman John Britton
said. "We want to keep our wholesale customers on the network at
prices where SBC is not subsidizing them."

The idea of killing "line sharing," as the provision is called, has
loomed over Covad since February 2003, when the FCC rewrote its
telecom rules. Covad can strike deals with the Bells to continue line
sharing, as it did with Qwest Communications in April. But Covad
won`t have the benefit of regulations that force the Bells to agree
to prices more favorable to the start-ups.

News.blog
Broadband
Our reporters` take on what`s
happening in broadband.

"It really showed our commitment to working with our wholesale
customers and our commitment to fair, market-based competition,"
Qwest spokeswoman Claire Mylott said. She declined to comment on the
terms of the new line-sharing deal.

Covad is already preparing itself for the rule change. In the filing
with the Securities and Exchange Commission the company warned that
after the October deadline it would have to strike more deals with
the Bells to allow line sharing, as it had with Qwest. If Covad
cannot reach an agreement, the Bells could force it to buy separate
phone lines, rather than the data portion of a line, to serve
customers in a given region.

"If this occurs, the company may stop selling standalone consumer
grade services to new customers, because the cost of a separate
telephone line is significantly higher than what the company
currently pays for the shared line," the filing read.

Covad`s best hope rests with FCC Chairman Michael Powell, who is
working to broker a deal with fellow commissioners to preserve line
sharing. If Powell succeeds, the decision could become the lifeline
Covad needs to keep its DSL business afloat, at least for the time
being.

Keeping its head above water
Covad is no longer willing to bet its future on the outcome of
regulatory deal-making that is out of its control. The past 18 months
have forced Covad to take a more aggressive look at crafting a future
apart from the Bells--and this future begins with VoIP.

"Given the shifting regulatory environment, the long-term (plan) is
to get more control over our own destiny," said Charles Hoffman, the
company`s chief executive.

To its credit, Covad has survived in a market riddled with failures.
The demise of former competitors such as Rhythms NetConnections and
NorthPoint Communications represents a contrast to Covad`s
disciplined management of its operations and finances.

"Covad`s advantage was that the Bells were in DSL hell."
--Dave Burstein,
publisher of DSL Prime
Much of Covad`s rise in the late 1990s was fueled by selling
businesses access to dedicated DSL lines that weren`t shared. Also,
Covad got a head start selling DSL to households while the Bells
dragged their heels in major markets.

The Bells these days have gotten their act together and are
aggressively cutting prices and packaging DSL with other services
such as wireless phone and satellite television.

"Covad`s advantage was that the Bells were in DSL hell," said Dave
Burstein, publisher of industry newsletter DSL Prime. "When the
Bells` services became OK, why go to Covad?"

Executives and analysts observe that Covad has invested heavily in
its network and has reached enough mass to lower operation costs and
increase margins per customer. In the quarter ended June 30, its DSL
lines jumped 13 percent from a year earlier to 514,000. Consumer
subscriptions accounted for 292,200 lines, while its business
customers reached 222,200.

Streamlining its DSL business helped the company lower its net losses
to $7.4 million last quarter on $107.3 million in revenue. That`s a
healthy improvement from last year`s $27.3 million in net losses and
revenue of $92.4 million.

Wholesaling DSL lines to largest partners EarthLink and AT&T now
contributes 17 percent and 14 percent, respectively, to its total
revenue.

The VoIP savior?
Covad executives know that despite improved finances and some support
from the FCC`s Powell, the company cannot rely on the Telecom Act to
keep its business growing.

Change began in March when Covad acquired a Silicon Valley start-up
called GoBeam for $48 million in stock. The deal pushed the company
into the crowded VoIP ring, which telecom giants, including the
Bells, are planning to enter. Even the venerable AT&T is pinning its
future on VoIP, now that it will no longer pursue new residential
phone customers.

The GoBeam acquisition could act as a doorway for Covad to strip its
fortunes away from the Bells` control. Unlike traditional phone
lines, VoIP is not federally regulated, nor is it dominated by a
handful of companies. Since VoIP technology uses the Internet to
transmit digitized packets of audio, anybody can offer it without
relying on incumbent phone networks.

By all expectations, VoIP will explode over the next several years.
In the United States alone, Net phone services will reach 5 million
subscribers by 2007, according to Stratecast Partners. The market
will find a significant presence in businesses, where 1.7 million
VoIP lines will be found through IP PBXs (private branch exchanges),
according to Forrester Research.

"VoIP is a big opportunity," Covad`s Hoffman said. "We own our own
network, so we`re not reselling someone else`s network."

But VoIP will come at a cost. In its earnings report, the company
warned that the cost of marketing its VoIP business will end its
steady improvements in net income. Next quarter, Covad expects
expenses of rolling out VoIP to contribute to a net loss between $21
million and $25 million.

Aside from the hype surrounding VoIP, the company is planning to jump
onto other promising bandwagons such as wireless broadband access.
Many companies are keeping a close eye on a wireless standard called
WiMax, which only recently achieved industrywide agreement on
technical specifications for developing products. WiMax proponents
say the technology will deliver a broader transmission range to more
homes and devices.

Covad executives were mum about their investment in WiMax
technologies. Options include building out their own wireless
networks in certain markets or partnering with network providers.
Either way, Covad executives view wireless broadband as a clean slate
to sell access without the Bells breathing down their necks.

Executives hope "there are folks we`ll be happy doing business with
and not having the problems that we`ve had with the (Bells)," said
Ron Marquardt, Covad`s technical director.

News.com`s Ben Charny contributed to this report

[Bannerman]

Kaufman Brothers
7th Annual Communications, Media & Technology Conference
Sept 8-9, 2004 - The W Hotel, New York

Moderator:

Good morning everyone. I am Michael French (?) from the Kaufman
Brothers Research Department, here today to introduce Covad
Communications. The ticker is C-O-V-D. With us today are Charlie
Hoffman, the President and CEO, and Mark Richman, the CFO.

COVD is a competitive provider of integrated communications services,
principally voice and DSL. It also provides .. traditional voice and
DSL (correcting previous sentence) .. it also provides VoIP with the
acquisition of GoBeam which I am sure you will hear about. It provides T-1 service, dial-up internet and web hosting.

Services are available through internet service providers (ISPs),value added resellers (VARs) and telecommunications carriers.

So .. Charles ? Please take the .. phone (?) .. thank you very much.

Charlie Hoffman:

Thanks Michael. Welcome everyone. Uh .. we`ve entitled this presentation "Transforming communications through broadband innovation, and I wanna go through a little bit of the history of COVD to start. But first .. start with the securities .. disclaimer.

Uh .. I`ll kind of run through the strategy of the company, and uh .. update you on the progress and Mark will cover the financials.

This .. if you can see .. it just kind of goes through a little bit of the history. Of course COVD was founded after the 1996 Telecom Act. We launched the first commercially available SDSL, STILL have the only
really SDSL service that`s synchronous, same speeds up and down, which businesses really need. The phone companies typically don`t do that.
Uh .. and of course we quickly hooked up a nationwide network, we reached 40% of homes and businesses in September 1999. Uh .. really pioneered the self-install kit. As you`ll see, in June of 2003, we won an award for having the best self-install kit.

But by that point, the important thing is, 99% plus of consumers self-install. So huge savings for a company, and obviously, much easier for the customer to self-install than wait for a truck roll to schedule appointments and so forth.

Uh .. some other milestones, we lauched T-1 services in November of 2001. Hosting services which made us a full service ISP in March 2003. And the first enterprise SDSL service in February 2004.
Uh .. and now of course this past June we`ve launched voice over IP (VoIP). And we are going to talk about the next two things .. and the reason I want to show you this is to show we will continue to innovate
some quite interesting things.

"Voice optimized access", which was going to enable uh .. voice over IP from other sources to have quality of service that is not in the market today.

And "line-card voice access", and I`ll explain what that is, as we go. Uh .. we`ve continued to build out the network, we`re in 2052 Central Offices (COs) as of the end of this month. Uh .. 113 MSAs throughout
the country. So we remain the only national broadband carrier.

And what that really means is, for our customers is one contract, one way of doing business for the whole country. Uh .. so if you take .. uh .. a recent sale such as Lockheed Martin, which is all the army recruiting centers throughout the country, it`s one way of doing
business for all those throughout the country.

I want to show this slide. This is a depiction of really what we own. Uh .. a lot of investors don`t really understand what we do and they think we are reselling something from the phone company. The only
thing we use from the phone company is that last-mile copper loop. As you seen on the left there (referring to slide).

Uh .. everything else we own or control in our network, our DSLAMs throughout those 2052 locations, uh .. our national network, an IP network that never goes through the public internet, our IP POPs (points of presence ?), 17 of those throughout the country where we
aggregate all the traffic .. off to the internet.

Uh .. often, not appreciated is the operating support systems, provisioning systems, billing systems, all those things that make it all work are really the hard part, and that is what we`ve built over the last 7 years.

Of course we have customer care. We have customer care in two big centers in the U.S., in Canada, in India, to take care of our customers. And an often underutilized or UNDERAPPRECIATED asset is our installation services. We have 300 trucks running around the country and we find that that`s a unique asset. Nobody does that anymore. Uh .. but it`s really helpful, particularly to our small
business target.

This is a very busy slide, but want to show you the comprehensive portfolio of services we have. Uh .. from voice over IP all the way over to the voice optimized loop, which I`ll talk about, T-1 services, lots of varieties of DSL, uh .. you see our brand names, really three segments we go after, consumers, business and enterprise. Mostly through partners. Some 78% of our business is wholesale today, but as you`ll see we are starting a shift there.

But all these products were developed with a partner, uh .. one of the most recent for example, Frame over DSL, we developed with Sprint, uh .. turns out AT&T is now the largest seller of that. But we continue to innovate in our product development, and we`ll do so with our
partners as we go along.

Our strategy, if you look at the middle, the blue circle (referring to slide 7) .. uh .. really, if you take the nationwide network and all the systems I talked about, the customer support and the field tech
support, we`ve been a good .. uh .. data services operator, but the broadband .. uh .. capability we have really, aligns itself very well over to voice over IP.

Uh .. so we`re now (unintelligible) in the long distance business. Uh .. and through a variety of channels .. uh .. both wholesale and retail .. uh .. and so the strrategy is to continue to utilize our
broadband network for more things. Voice over IP being the most recent.
Small and medium business continues to be really our focus. Some 68% of our revenues is small and medium business .. uh .. just to give you a .. uh .. feel for the market size, 8M SOHO (small office home
office) businesses, 2.5M small and medium businesses in the U.S. Uh .. and branch office deployment, that`s .. the recent sales have all been distributed enterprise kind of accounts.

Uh .. YUM brands for example .. uh .. 13,000 Kentucky Fried Chicken and Taco Bell franchises, really perfect for COVD, because we can take them off an expensive T-1, put on a very reliable DSL service, they save a lot of money, and they can do it nationwide with us.

The market attributes of small businesses, you know they need mobility, they need remote access, uh .. they like any small business, they have too many hats to wear, too many products, too much information, and too little time. Uh .. so really a specialist in small business really helps them out.

Trends - of course they all want higher upload speeds, more bandwidth as they do more selling over the web, and servicing over the web. They need more of that, they need a secure solution .. uh .. improved customer and technical support and voice over IP, which is really
perfect for small .. business.

In voice over IP, of course you have to have broadband. Uh .. so it`s a natural fit for us. Uh .. it is really a good value .. uh .. really will increase our .. our revenue and profitability .. and those of our
partners.

Uh .. from the partners side, I mentioned there is "voice optimized loop" to ensure quality of service. Uh .. voice over IP you are not hearing too much about that yet. The Vonage and AT&T CallVantage .. uh .. is over anyone`s broadband. What that means is that you don`t have ANY quality of service, if you are downloading a large file, at the same time you are speaking .. uh .. the voice will deteriorate or you won`t be able to make a voice call.

Obviously, small business cannot rely on its business .. for that .. in this scenario. So really this provides an alternative to the ILEC service with a quality of service. So we`re starting to sign up regional CLECs .. uh .. still talking to large national guys about
this voice optimized loop which launches sometime late October. So, late next month.

Uh .. the other big thing about voice is it really helps us increase and diversify our revenue portfolio, gives us a broader product portfolio, and higher ARPU (average revenue per user), as Mark (Richman) will show you in a while. The ARPU is REALLY high, so just
a quick example, if we have a $150 a month SDSL small biz customer of today .. uh .. on average he would go to $2200 a month as a voice over IP customer. So .. it really helps us .. uh .. take advantage of our
customer base and get more revenue out of them.

And obviously it helps increase retention as the smaller business relies on us for voice as well as data .. uh .. the churn will go down. It`s a complete business solution .. uh .. I`ll show you the depiction
of the Dashboard in a minute (GoBeam`s Dashboard computer interface for making calls) .. uh .. but it`s multiple products .. uh .. it`s a fully managed service option. What that means is we manage the whole thing from end to end. And so there is no finger pointing, there is
no "oh my broad.. the broadband is the problem", or "the voice over IP is the problem". We manage the whole thing .. uh .. it also, if you think about a small business, it REALLY minimizes the Capex (capital
expenditure).

Instead of feeding (?) an expensive PBX, and having a telecom guy whoknows how to do those adds and changes .. uh .. it`s all managed by administrative person, very easy to manage. It also is obsolescence
.. uh .. less risky .. uh .. as we develop new products for other customers, it`s simple software to give that to our existing customers.

So it`s not like a PBX, where you have to scrap the old one and put in something NEW. Not necessarily.

Quality of service we talked about, reliability, comprehensive service level agreements, very simple pricing, 24/7 customer service .. uh ..
of course we manage the high speed connection as well, that`s ..that`s our business. And of course it`s got all the usual 911, local number portability (LNP), directory assistance etc.

The enhanced features I`ll talk to you about those in a minute. Uh ..and really sold through a variety of .. we have direct sales force, we have agent partners in every city .. uh .. that we`ve launched in, or
we have wholesale partners as well.

The products we .. there`s basically two products today. Virtual PBX (vPBX) which really eliminates the need for a PBX, and PBXi which is if you have a PBX in the business, this gives you the VoIP capability without scrapping that.

We`ll be announcing .. uh .. late this year a SOHO product, called vPBX Lite .. uh .. for the 25 station and below kind of a market.Typically our vPBX has attracted the 25 to 400 station small business
market. We got two customers at 500 stations, typical customer is 25
to 400, the average being about 40 and going up.

So the SOHO product will be for the much smaller business. The very
small business or the home office business. Then of course COVD
broadband and just the reliability question that people often ask,
well why you, you don`t have much of a brand. It is certainly
consumer we don`t. Small biz we DO have a bit of a brand .. uh .. and
hundreds of thousands of small businesses rely on us today for their
business because of the broadband connection.

Ok, this is a real busy slide. This shows you the Dashboard (slide
12). The user interface and I`ll just cover a few of the features
here .. uh .. of course one single number for all your calls, and
faxes .. uh .. integrated with microsoft outlook so a simple click to
dial, for most of your calls .. uh .. to the upper right, the find-me
feature really gives you a lot of capabilities .. uh .. so of course
you can answer calls normally, or just with a click of the button you
can send calls all calls to your voicemail, while you are in a
(unintelligible) conference. Or you can customize calls, you can send
all your calls to your mobile number, for this period of time, or your
home number, or second home number, lots of flexibility here.

There is also find-me, follow-me feature, where you can customize. So
for example we love to talk about the mother-in-law feature where that
particular number always gives a busy signal. Or other numbers .. go
to voicemail, or let`s say your boss .. uh .. goes through try me at
the office, try me at the mobile, try me at home, it keeps trying
until it finds you.

So the lower .. call log, for those who bill their time, quite handy.
Uh .. you can also just click on those to .. to call them back. Uh
.. one feature I really like, is where you come back from lunch and
there is 4 voicemails and you have been waiting for that one, and you
don`t have to wade through, listen to all your voicemails, you just
click on the one that you are waiting for, and deal with that one, or
forward it to someone .. let`s forward it as a wav (wav format) file
so .. send it to someone to handle.

Conferencing is VERY simple. Uh .. again you just click on your
microsoft contacts .. uh .. who you want to conference. Uh .. setup
the list, the system calls them all for you. And then calls you back
and let`s you know that everybody`s on.

One neat thing .. with your conference calls and there`s always
somebody on the cellphone and he would you mute with all the traffic
noise in the background, you can ute it yourself - the person setting
up the conference call.

Uh .. instant messaging, to the lower-right (on the slide), your
company can have instant messaging, so while you are on calls, you can
instant message people too.

There`s lots of other features. It`s really a robust system.

We`re starting to put this in throughout the country and .. uh .. here
in Jersey City our Jersey City office right across the ferry ride away
will be the place where you can easily see this. Lots of features for
administration as well. Ease .. moves and changes. So it`s really a
robust system .. really designed for small businesses.

We`re now in 42 .. these 42 markets (slide 13) as we roll out the rest
of the country this quarter we`ll be in the next tier of markets. And
then fourth quarter we`ll complete the rollout over a 100 cities
throughout the U.S. Uh .. we`re really the only small business
focused VoIP offering today.

Uh .. we`ll be doing advertising. We`re doing radio and print today,
and you`ll see in this market .. uh .. television .. uh .. starting
next week, mid next week, I think it`s the 15th it starts. We`re
really getting television in just 3 markets. We find that we get a
lot more bang for our buck in New York, San Francisco/Bay Area and
Washington/Baltimore. Those are traditionally good, our best cities.
Uh .. so we`re really building a brand there. Uh .. things work
better in the larger markets than the others. So Birmingham, Alabama
we`ll launch and we`ll have distribution partners there but that`ll be
using things like television advertising on .. looking at on the web
(?) .. and hopefully ordering through the web and through our
distribution channels.

I mentioned this "voice optimized access". This really addresses
those who are .. such as a Vonage customers who is either trying out
voice over IP or using it for second-line service. Uh .. so it really
optimizes the .. the access line for VoIP delivery.

So there there is .. uh .. we basically do on our network is put two
paths, one for voice, and one for the data, and control the quality of
both. Uh .. so we prioritize the voice, and make sure there is
quality there. And we can do this with out existing infrastructure,
uh .. not a big capital .. uh .. requirement here, and of course it
fits within our existing regulatory framework.

Uh .. so it is a great offering for the likes of an AT&T for example,
who is going to care .. about the quality of service .. uh .. because
otherwise the churn is going to be too high .. as people get unhappy
over voice over IP.

So this is probably mostly a consumer offering, `course we do this for
our small biz customers as well .. uh .. but it really gives us an
opportunity to work with all the VoIP providers .. uh .. in the country.

There is another new product coming. And this is a Q1 2005 thing.
We`ll be announcing a technical trial .. uh .. this week on this. I`m
sorry, next week. Uh .. and we call it "line-powered voice". So that
more than 19M UNE-P customers that regulatory changes are phasing that
out .. uh .. this is a migration path for those UNE-P customers.

As a true primary line replacement service .. uh .. it delivers plain
old telephone service (POTS) to the end user .. uh .. with the VoIP
conversion as a possibility. Uh .. you can add additional lines via
voice over IP on the high frequency portion of the loop (by first
offering them DSL). Uh .. it really gives us the ability .. DSL as
you may know, we have a distance limitation and our COs, typically go
to 18,000 feet from the COs for our customers with DSL. With this
product we can go to any customer in the COs we serve. So it adds
about 40% more prospective customers to our list. It`s also POWERS
the line. With the next hurricane on it`s way to Florida, this is
particularly important .. uh .. so if the phone line is up, this
product will be up as well.

Here`s a simple depiction, non-technical depiction (slide 18) of how
it works. So you get a consumer premises and a basic analog copper
loop that goes to our .. our central office, our DSLAM, that can use
ANY phone, any analog phone they have today, no special IP phones, no
IAD (internet access device - which usually would require power at the
consumer end) required. Uh .. because in our DSLAM, that`s where we
are doing all the work, that`s where we are powering the line, that`s
where we are converting the analog voice to data, and sending it off
to our softswitch or the softswitch of one of our partners, then off
to the public-switched telephone network (PSTN).

So it`s all existing technologies. Uh .. our supplier or DSLAMs,
Nokia, is just putting it all in the new line-card. Uh .. that`s
cost-effective for us to do this. Uh .. so we`re really excited about
this .. we`ll be announcing two partners that will be doing a
technical trial with this in the Fall of this year and then rolling
out commercially first quarter of next year (Q1 2005).

We`ve also made progress on alternative last-mile. Obviously .. uh ..
we still depend on .. the phone companies for that copper loop that
goes to every home and business in the U.S. Uh .. so we`ve recently
completed a trial in Louiseville, Kentucky of .. of wireless
broadband. It worked REALLY well. Our customers really thought it
was equivalent to or better than what they had before.

Uh .. so it seems like it`s really reached the point, as you know, of
.. this is WiMAX, this is .. uh .. standards are being set right now
.. uh .. so we are .. on that board .. setting the standards. And so,
we plan to actively deploy wireless to reduce our exposure to
regulatory uncertainty .. uh .. and really expand our footprint.

Uh .. so this is, again, a real exciting thing for us. Here is the
timetable of field trial (slide 20). Uh .. kind of the next trial
that we`re doing which is more .. uh .. who are the equipment vendors
we should work with .. uh .. we`ll start in October .. uh .. of this
year. We`ll also determine the "pre-qual". Pre-qualification is
really important as you might imagine. So just like in the beginning
of the cellular business you had to determine if you are within the
coverage area. So it is important that we have an efficient way of
prequalifying the customer .. uh .. so that we know that their
business would fit within the coverage area.

We`re going to use 50 friendly customers for this trial. Uh .. then
we`ll start a market trial in Q2 of 2005 with about 200 customers.
And that`s really to validate the early learnings on this .. uh ..
optimize the network, get all our systems in place, and so forth. So
we are looking at an initial launch of Q4 of 2005, which is about when
wireless broadband starts getting deployed everywhere.

This is unlicensed spectrum. Uh .. lot of .. particularly in Silicon
Valley where we are located, a LOT of development, a LOT of equipment
vendors to choose from. In fact the list is currently 14 that we`ll
pick a couple of vendors to work with.

Uh .. we also are working with licensed spectrum holders. So, these
guys of course have spectrum but they don`t have the national network
to tie it all together, the provisioning systems and billing systems
and so forth.

And so, we`ll continue to partner with those who are interested in
that (sirens audible in background). So, this is the ultimate for
COVD, where we don`t have to rely on regulatory and .. phone company
at all. Even for that last-mile.

So we .. have evolved the business pretty quickly, as regulatory
continues to shift from just a DSL provider to integrated voice and
data provider. From a line-count oriented company to really revenue
driven, as Mark (Richman) will show you, the lines become kind of
irrelevant, because one line can bring in a lot of revenue with voice
over IP.

Uh .. from a footprint limited by the DSL distance restrictions to
voice services that expand our reach by about 40%. And from CONSTANT
regulatory uncertainty a facilities-based voice and data network with
much more lightly regulated kind of business.

Uh .. so why don`t we go to Mark (Richman) to cover our financial
highlights.

Mark Richman:

Thank you Charlie. Uhm .. the purpose of this first slide (slide 23)
is to understand the incremental economics that COVD received as we
add subscribers to our network. And it provides a fair amount of
detail going from left to right in terms of or both wholesale and
business segments. Where we have on consumer on the far left which is
both line-sharing and line-splitting product offerings to business on
the right.

A key message here is that, even with low ARPU products like consumer,
recurring margin contribution is really quite good going anywhere from
between the high 60`s and into the 70% margin contribution.

And again, the key thing here is that this is .. this is an
incremental .. uhm .. profit model. This is not about amortizing a
fixed cost structure that we have .. at the company. So what this
DOES provide us with .. tremendous financial and operating leverage as
we add subscribers to our network.

Uhm .. that the consumer on the far left there is going to contribute
about 30% of our revenue contribution, with business on the wholesale
side contributing 40-45% and business on the direct side contributing
about 25%.

So one of the BIG opportunities that we have as a company today is
looking at that far right column, that voice over IP.

And as Charlie mentioned, one thing that we need to do going forward,
is to really to drive the revenue number, and it`s about driving
revenue as opposed to just a line count number.

And the reason for that is, in this example here, what we are looking
at, kind of a .. the common profile that we have for a small business
voice customer today, we`ve got an ARPU at $2200, and that means that
there is going to be for that one customer, they`re going to have
end-user stations in the range of 35-40 on average.

So, the ARPU of $2200 is going to be vastly an improvement over our
other product offerings. And even with that $2200, what we expect to
get a recurring margin contribution still over 60% which is quite
good. In this example here, we`re at $1250, so what we need to do now
is focus on this opportunity, to be able to drive the revenues, and
that`s why we are aggressively expanding our small business VoIP
opportunity, going from 3 markets that .. that .. that we were
previously in, and when we acquired GoBeam, to about a 100 markets at
the end of the year. Uhm .. it`s just that (?) recurrent margin
contribution for COVD is tremendous.

And that`s what`s reflected in this next slide (slide 24). We`ve done
a good job of driving our broadband subscription revenue which is a
key driver of revenue and growth for us. And over the last several
quarters, with this last quarter being challenged .. uhm .. for a
couple of reasons, we DID have .. uh .. negative net add growth in the
first quarter this year, which is going to be more reflective in the
second quarter. And there was SOME repricing of our base (?) which
went on in Q1 as well, which has impacted Q2 results.

So one of the things, and we`ll continue to see this going forward, so
we continue to drive the improvement in our profitability, and the
fact that we improved our .. our cash position, is to get the revenue
driver going forward. And we truly see this voice over IP opportunity
as a HUGE revenue opportunity for COVD. That`s why we are going to
make strong investment, particularly in the sales and marketing
efforts to drive the various markets to offer the voice over IP .. uhm
.. opportunity.

So we`ve made the statement that as a company we expect to invest
approximately $40M on part of our 170M existing cash balances to .. to
.. to try to exploit this opportunity, so by the second-half of next
year .. uh .. the markets will be all .. we`ll get some traction in
all of the 100 markets and we`ll be back to cash flow positive as a
company.

Uh .. our results on the EBITDA line (?) have been very consistent.
You can see the trend line here (slide 25) is VERY VERY good. Uhm ..
the drivers going forward .. we have to .. a lot of it is because we
had some very good cost management. We have been very good on cost
discipline.

To be able to continue to get this kind of trajectory on the EBITDA
number it is important that we get .. uhm .. additional revenues, and
again that`s the voice over IP .. our voice over IP opportunity is
going to be a key driver to continue to get these kind of results on
the EBITDA line.

Uh .. this is kind of a .. just to give you a a bigger picture of the
metrics that we`ve obtained in the last several quarters (slide 26).
Uhm .. in terms of counting EBITDA, which we`ve gone over (?). The
one thing I`d like to focus you on here is the cash balances on the
very bottom line.

We`ve done a VERY good job of improving our ability to manage cash and
.. it`s not an insignificant milestone that we are cash flow positive
(CFP) in Q2 of 2004. And coming in at $3M in terms of positive cash
flow for the quarter.

So, we believe the underlying broadband business .. uhm .. with what
we want to grow it is cash flow positive for the company. The key
thing for us is to continue to be able to drive the top line. So the
balances that we have today .. uh .. of approximately $170M in liquid
cash balances of this company is more than sufficient to be able to
invest that into new market opportunites specifically around small
business opportunity .. uhm .. with voice over IP.

Uh .. that`s just a brief summary of the financial highlights. I
guess we could .. uh ..

Charlie Hoffman (?):

Questions.

Mark Richman:

Pardon ? Entertain some questions now. Yeah.

We have a few in flow (?).

Charlie Hoffman:

One thing .. we did make an announcement this morning that .. Mike
talked a little bit about line-sharing and .. line-sharing is a
consumer wholesale kind of product that .. that uh .. is really is a
source of a lot of lines .. you know everybody`s focused on
line-growth and .. uh .. we have been challenged in that the FCC in a
surprise move took away .. uh .. line-sharing or phased it out. And
we have been facing a deadline beyond which we couldn`t add customers.

Uh .. we continue to get customers on .. on line-sharing orders this
quarter in particular, August was surprisingly good. Uh .. we signed
a commercial deal with Qwest so that we wouldn`t be subject to the
regulatory environment on going (?) some months ago.

Today we announced that we have a deal with SBC as well, and the good
thing about the SBC deal is that it continues the pricing that we`ve
had .. uh .. with SBC which is about $5.75 a line with a $10
non-recurring .. so .. so an excellent deal for us .. uh .. enables us
to be in that consumer wholesale business for another year. So
between Qwest and SBC is about 68% of our base. We`re still working
on BellSouth (BLS) and Verizon (VZ) to do a commercial deal.

We also have some hope, I don`t know if you guys have noticed it, but
.. Michael Powell leaked a memo that he sent to Democrats saying we
really hurt consumer .. uh .. wholesale competition .. uh .. and
didn`t intend to go this far and we should reinstate line-sharing so
there`s efforts at the FCC to also help on the regulatory front, so ..
uh .. the good news of today is we .. we finalized the SBC deal.

Yes sir.

Questions:

Could you .. ask to terminate that deal if there is any ..
(unintelligible) clause or anything like that.

Charlie Hoffman:

Yeah I know, SBC deal`s is exactly the same as what we had with SBC
before. So there is no funny terms. It goes through Sept 2005.
$5.75 a line and $10 non-recurring. So it is a very simple one page
contract unbelievably.

Yes Sir.

Question:

What leverage would you have brought to the table. Why would they do
that ?

Charlie Hoffman:

Why would .. why would SBC do that is is the question. Well, first of
all with the more enlightened people at the RBOCs, like the revenue.
Uh .. they realize they are not going to get a 100% of the business
and they like the revenue stream to continue.

Uh .. I also believe the regulatory guys are like what .. you know ..
the first reaction when we got to the right person is .. "why are we
picking a fight with you guys now ? We don`t really need this".

You know, it`s not .. their big concern is the cable companies,
obviously. So .. uh .. SBC also keep in mind is an investor .. they
own 4-5% of COVD. Uh .. we have a $75M prepayment for services from
SBC. A long-standing relationship. I spent 17 years at SBC.

Uh .. now Qwest and Verizon we do have leverage in that we do have
anti-trust suits still going against them. Recently we`ve won some
lower court cases to continue those suits. So there is some leverage
there as well.

Question:

Question. The UNE-P alternative that you`re putting together ..
that`s using your existing colocations. Uh .. what would be the time
(?) to colocate .. do you have this .. this available in the major
UNE-P markets .. or do you .. Detroit, Chicago, New York, Atlanta.

Charlie Hoffman:

Yeah, the question is on the UNE-P replacement product. `Course you
already have the DSLAMs in place in all the markets .. 2050 COs
throughout the country. Uh .. so .. this is a new chassis and
line-card. So it`s pretty simple, same DSLAM, same provider. We`re
working through now the provisioning and billing and all the software
necessary to support that.

Uh .. that`s why it`s a Q1 2005 and not today .. thing.

Question:

.. numbers in Q1 2005.

Charlie Hoffman:

Sure. The big issue on migration of UNE-P customers will be with the
so-called "hot-cut" process. Uh .. and that`s where the phone company
has to participate. Uh .. to help us switch that customer to a new
service.

That either will work out through an FCC mandate .. uh .. which is
heavily being discussed at the FCC. Or we`ll have to slog it out
state by state. So in this particular state, New York .. uh .. good
news, I think it was last week, where they greatly reduced the hot-cut
price.

It was several hundred dollars, down to about $45. So it .. doesn`t
necessarily make it any quicker, but it sure made the price better ..
to do that.

Moderator:

I think we are out of time. So thank you very much, and look forward
to talking to you.

(Clapping)

[Bannerman]

Artikel vom 21.09.04
War am 22.09.04 auf der Internetseite von bloomberg nicht mehr zu finden, allerdings war die Überschrift noch im google-cache, also glaubhaft.

Bloomberg Columnists

John Dorfman , president of Dorfman Investments in Boston, is a
columnist for Bloomberg News. The opinions expressed are his own. His
firm or its clients may own or trade investments discussed in this
column.

J.P. Morgan Analyst Is Top Short Seller: John Dorfman (Correct)
J.P. Morgan Analyst Is Top Short Seller: John Dorfman (Correct)

(Corrects typographical error in penultimate subhead. Commentary.
John Dorfman, president of Dorfman Investments in Newton Centre,
Massachusetts, is a Bloomberg News columnist. The opinions expressed
are his own. His firm or its clients may own or trade investments
discussed in this column.)

By John Dorfman

Sept. 21 (Bloomberg) -- Lionel Archille, a retailing analyst for J.P.
Morgan Securities Inc. in New York, has won my sixth annual ``Short
Sellers Don`t Have Horns`` contest.

Short selling is the art of profiting on a decline in a stock.
Archille won by selecting Covad Communications Group Inc. (COVD), an
Internet service provider based in San Jose, California. Covad stock
sank 70 percent, the most of any stock picked in the contest.

For his acuity in short selling, Archille will receive a collection
of short stories. Previous winners have received a CD by pianist
Bobby Short and a biography of Napoleon Bonaparte, a famous short
person.

While Archille is a professional investor, some previous winners have
been gifted amateurs. If you would like to try your luck in the
contest, entry rules are at the end of this column.

Contestants did well in the latest contest, which ran from Sept. 30,
2003, through Sept. 15, 2004. Even though the Standard & Poor`s 500
Index rose 14 percent during that period, most contestants managed to
pick a stock that lost ground.

Not That Easy

By contrast, in several of my previous short-selling contests, people
have had great difficulty in picking losers. Last year, for example,
24 of the 28 contestants picked stocks that went up, and 20 of their
picks went up more than the Standard & Poor`s 500 Index.

Entrants aren`t required to put real money behind their contest
picks, though clearly some do.

When he entered the contest a year ago, Archille pointed out that
Covad Communications had no earnings and negative cash flow. Yet it
traded for four times revenue. ``Investors` expected growth (rate)
for the company is too high,`` he wrote.

That reasoning proved to be right on the mark. A year ago analysts
were expecting Covad to earn about 45 cents a share in 2004. Now they
expect that the company will show a loss of about 27 cents a share
this year.

Second Place

Covad first sold stock to the public in November 1999. Since then, it
has reported only one profitable quarter. In the past four quarters,
losses have been narrowing and revenue slowly increasing.

Covad has debt equivalent to 457 percent of stockholders` equity, a
very high ratio. The stock sells for 1.1 times revenue and 18 times
book value (assets minus liabilities per share). The former is cheap,
the latter quite expensive.

Second place in the contest goes to Sumit Sablok, an analyst with
Symphony Asset Management, a San Francisco hedge fund. He scored a 65
percent gain in Redback Networks Inc. (RBAKQ), which was acquired by
its creditors in January.

The company, based in San Jose, California, makes equipment used to
deliver high-speed Internet service. A year ago, Sablok correctly
predicted that the company could not ``survive without huge
restructuring and raising funds at hugely dilutive terms.``

Travelzoo Inc.

For the coming 12 months, Sablok says he will probably pick Travelzoo
Inc. (TZOO) as his favorite short candidate. The company, based in
New York City, runs Internet sites and a newsletter for the travel
industry.

Travelzoo stock has risen 606 percent in the past year, and now sells
for 401 times earnings, 150 times book value and 47 times revenue.
Sablok says he looks at the business and ``can`t see how it can ramp
up and justify these multiples.``

Michael Berlin, portfolio manager with MHB Equity Management LLC,
took third place as his pick, Dynacq International Inc. (DYII),
dropped 64 percent.

Dynacq, based in Houston, Texas, runs outpatient surgery centers. In
the past year it has been investigated by the Securities and Exchange
Commission for its accounting practices, and probed by the Texas
attorney general for the way it solicits patients.

Short Sellers Help

In its latest reported quarter (ended in May), Dynacq reported a
sharp drop in revenue, to $13 million from $25.6 million the year
before. It has also been delisted by the Nasdaq Stock Market for
failing to file financial reports on time.

Some people abhor short selling and short sellers. They say that
short selling raises no capital for U.S. enterprises, serves no
constructive purpose and encourages short sellers to spread negative
rumors about companies.

I disagree. Short sellers aid the flow of information in the
marketplace, combat hype and help keep na<ve investors from
overpaying for ``story stocks.``

I`m not 100 percent objective on this, since I do engage in short
selling for myself and some of my clients.

Enter Now

If you would like to try your luck in the contest, please provide the
following information: Your name, occupation, address, phone number
(office and home) and e-mail address. Name a stock that you expect to
show a large decline in the next 12 months and -- briefly -- why.

The stock can be based anywhere in the world, but must trade in the
U.S. It should have a market value of $100 million or more on the day
the contest begins, Sept. 30, 2004.

The contest runs through Sept. 15, 2005.

E-mail me at johndorfman@d.... Or, if you prefer,
write to John Dorfman, President, Dorfman Investments, Suite 500, 10
Langley Road, Newton Centre, MA 02459. Entries must be postmarked or
time-stamped by midnight, Sept. 30.
-----------------------------------
Herzlichen Glückwunsch an Lionel Archille für seine scharfsinnige Einschätzung letztes Jahr.
Fand den Artikel interessant.

[Aufstieg2005]

Mittwoch, 6. Oktober 2004 | 14:03 Uhr

Covad Gives Voice to Small Business In Charlotte, Cincinnati, Columbus, Indianapolis, Kansas City, Milwaukee, Nashville, Pittsburgh, St. Louis, St. Petersburg and Tampa
Covad Gives Voice to Small Business In Charlotte, Cincinnati, Columbus, Indianapolis, Kansas City, Milwaukee, Nashville, Pittsburgh, St. Louis, St. Petersburg and Tampa

BW5314 OCT 06,2004 5:03 PACIFIC 08:03 EASTERN

( BW)(CA-COVAD-COMM)(COVD) Covad Gives Voice to Small Business InCharlotte, Cincinnati, Columbus, Indianapolis, Kansas City, Milwaukee,Nashville, Pittsburgh, St. Louis, St. Petersburg and Tampa

Business Editors/High-Tech Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 6, 2004--

Covad VoIP Truly Integrates Telephone and High-Speed Internet Service

Covad Communications Group, Inc. (OTCBB:COVD), a leading nationalprovider of integrated voice and data communications, today announcedthe availability of business-class Covad VoIP (Voice over InternetProtocol) in 11 new markets: Charlotte, Cincinnati, Columbus,Indianapolis, Kansas City, Milwaukee, Nashville, Pittsburgh, St.Louis, St. Petersburg and Tampa. Now launching nationwide, Covad VoIPis managed end-to-end, offering small and medium businesses anunparalleled suite of services and voice quality that businesses canrely on.
Covad VoIP will be available in all 113 major metropolitan areasserved by Covad´s nationwide broadband network by the end of 2004.
"VoIP is the most significant alternative ever to traditionalphone service, and Covad VoIP is a high quality, reliablecommunications service with features that, until now, have not beenavailable at affordable prices for small businesses," said CharlesHoffman, president and chief executive officer of Covad. "Covad VoIPoffers small businesses the opportunity to work with one provider fortheir voice and data needs on a national scale."
Patrick Hurley, Director of Research at telecommunicationsresearch firm, TeleChoice, Inc., said: "When businesses areconsidering Voice over IP services they shouldn´t expect today´sconsumer VoIP services to keep up with their needs. However, when aprovider like Covad adds Voice over IP onto its nationwide broadbandnetwork, they can provide these business customers a truly integratedvoice and data service that offers customers the quality andreliability they need."
Covad VoIP works by delivering voice information in digitalelectronic packets. This allows businesses to manage calls with asingle broadband connection.
Covad currently offers two VoIP products custom-tailored forsmall- to medium-sized businesses, and for enterprises needing avirtual Private Branch Exchange (PBX). Covad vPBX is designed as afull PBX alternative. Covad PBXi is designed to work seamlessly withexisting PBX equipment. Covad and Covad´s dealer network install theservice, train users and provide complete customer support.
Covad vPBX features the Covad Dashboard, which brings an array ofcapabilities into one common Web-based user interface, including:local and long-distance services, visual fax and voice mail, InstantMessaging, audio and web conferencing, call logs, directory services,"Find me/Follow me", and other features, all managed from one placeusing one phone number.

Features of Covad VoIP include:

--
Nationwide coverage

--
Local and Long Distance telephone service

--
Automated provisioning capabilities

--
Service backed by comprehensive service level agreements (SLAs)

--
Covad Dashboard, an easy-to-use, award-winning Web-based user interface for users to manage and customize their service

--
Call logs for instant access to incoming and outgoing call information

--
Find Me/Follow Me functionality that allows the user to stay in touch from anywhere at any time

--
Unified visual voice and fax mail

--
Voice and Web conferencing

--
Automated Attendant

Covad VoIP can be ordered directly by calling 1-866-462-3269.

For more information on Covad VoIP visit Covad´s website andschedule a free voice assessment with a Covad consultant at:http://www.covad.com/voip/howtoorder/index.shtml.

About Covad

Covad is a leading nationwide provider of integrated voice anddata communications. The company offers DSL, Voice Over IP, T1, Webhosting, managed security, IP and dial-up, and bundled voice and dataservices directly through Covad´s network and through Internet ServiceProviders, value-added resellers, telecommunications carriers andaffinity groups to small and medium-sized businesses and home users.Covad broadband services are currently available across the nation in44 states and 235 Metropolitan Statistical Areas (MSAs) and can bepurchased by more than 57 million homes and businesses, whichrepresent over 50 percent of all US homes and businesses. Corporateheadquarters is located at 110 Rio Robles San Jose, CA 95134.Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.

Safe Harbor Statement under the Private Securities LitigationReform Act of 1995:

The foregoing contains "forward-looking statements", such as thenumber of metropolitan areas where Covad VoIP will be available, whichare based on management´s current information and beliefs as well ason a number of assumptions concerning future events made bymanagement. Readers are cautioned not to put undue reliance on suchforward-looking statements, which are not a guarantee of performanceand are subject to a number of uncertainties and other factors, manyof which are outside Covad´s control that could cause actual resultsto differ materially from such statements. These risk factors includethe impact of increasing competition, pricing pressures, consolidationin the telecommunications industry, uncertainty in telecommunicationsregulations and changes in technologies, among other risks. For a moredetailed description of the risk factors that could cause such adifference, please see Covad´s 10-K, 10-Q, 8-K and other filings withthe Securities and Exchange Commission. Covad disclaims any intentionor obligation to update or revise any forward-looking statements,whether as a result of new information, future events or otherwise.This information is presented solely to provide additional informationto further understand the results of Covad.

--30--WG/sf* CONTACT: Covad Communications Kathleen Greene, 408-952-7434 (Media) [e-mail] Mark Brandt, 408-434-2130 (Investor Relations) [e-mail] KEYWORD: CALIFORNIA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET E-COMMERCENETWORKING TELECOMMUNICATIONS PRODUCT SOURCE: Covad Communications Group, Inc.Copyright Business Wire 2004

(c) 2004 Business Wire. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.

Autor: © Business Wire , 14:03 06.10.04

[Bannerman]

Covad Response to FCC Fiber Deregulation Decision; FCC Reaffirms
Covad`s Continued Access to Line-Sharing Under Section 271 of the 1996
Telecommunications Act
Business Wire - October 27, 2004 18:02

SAN JOSE, Calif., Oct 27, 2004 (BUSINESS WIRE) -- In the course of
granting fiber relief to the local Bell phone companies, the Federal
Communications Commission (FCC) today clarified a key issue under its
Triennial Review Order and retained legacy loop unbundling
requirements under Section 271 of the Telecommunications Act of 1996.
In particular, the FCC removed Section 271 unbundling requirements for
fiber-based facilities, while keeping in place Section 271 unbundling
obligations for legacy copper facilities, including line sharing.

In a separate order released last week, the FCC also eliminated
unbundling requirements for mass market "fiber to the curb"
facilities, defined as fiber that extends within 500 feet of customer
premises.

Covad Communications Group, Inc. (OTCBB:COVD), a leading national
provider of broadband voice and data communications, uses line sharing
to provide last-mile access for some of its broadband services. As a
result of the FCC ruling, the obligations of the local Bell companies
to provide companies like Covad continued access to line sharing under
Section 271 were reaffirmed.

James A. Kirkland, Covad senior vice president and general counsel,
said: "We are very pleased that the FCC expressly declined to grant
Section 271 forbearance relief to the Bell companies for line sharing,
which involves access to legacy copper loops, rather than new fiber
facilities.

"In reaffirming Covad`s continued access to line sharing under Section
271 of the Telecommunications Act, the FCC has preserved an important
source of broadband competition and paved the way for the introduction
of new and innovative broadband services, such as Voice over IP
services, over legacy copper facilities."

Kirkland added: "Even under the most aggressive fiber deployment
scenarios, it is clear that legacy copper loops will remain a
ubiquitous infrastructure for reaching consumers and businesses for
many years to come. New technologies, such as ADSL 2+, will ensure
that these copper facilities can be utilized to provide a wide variety
of new and innovative services."

With respect to the fiber relief which the FCC granted, Kirkland
observed that "Covad`s current business plans are not based on having
access to these new mass market fiber facilities, so we do not view
this as a significant development," Kirkland said.

Additional Background

In the Triennial Review decision, the FCC removed obligations to
unbundle certain fiber-based facilities, as well as obligations to
provide access to copper facilities via line sharing, under Section
251 of the Telecommunications Act. Section 251 sets forth the
unbundling obligations of all local phone companies, whether or not
they were formerly part of AT&T prior to the 1984 divestiture.

Section 271 of the Telecommunications Act and decisions implementing
it set forth independent unbundling requirements for the local Bell
companies, including a requirement that these companies provide access
to line sharing. In its Triennial Review decision, the FCC stated that
its actions under Section 251 did not affect these independent Section
271 unbundling requirements, and this portion of the FCC`s decision
was affirmed by the D.C. Circuit in its recent decision.

About Covad

Covad is a leading nationwide provider of broadband voice and data
communications. The company offers DSL, Voice Over IP, T1, Web
hosting, managed security, IP and dial-up, and bundled voice and data
services directly through Covad`s network and through Internet Service
Providers, value-added resellers, telecommunications carriers and
affinity groups to small and medium-sized businesses and home users.
Covad broadband services are currently available across the nation in
44 states and 235 Metropolitan Statistical Areas (MSAs) and can be
purchased by more than 57 million homes and businesses, which
represent over 50 percent of all US homes and businesses. Corporate
headquarters is located at 110 Rio Robles, San Jose, CA 95134.
Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.

Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995:

The foregoing contains "forward-looking statements" which are based on
management`s current information and beliefs as well as on a number of
assumptions concerning future events made by management. Readers are
cautioned not to put undue reliance on such forward-looking
statements, which are not a guarantee of performance and are subject
to a number of uncertainties and other factors, many of which are
outside Covad`s control that could cause actual results to differ
materially from such statements. These risk factors include the impact
of increasing competition, pricing pressures, consolidation in the
telecommunications industry, uncertainty in telecommunications
regulations and changes in technologies, among other risks. For a more
detailed description of the risk factors that could cause such a
difference, please see Covad`s 10-K, 10-Q, 8-K and other filings with
the Securities and Exchange Commission. Covad disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
This information is presented solely to provide additional information
to further understand the results of Covad.

SOURCE: Covad Communications

Covad Communications
Kathleen Greene, 408-952-7434 (Media)

-------------------------------------------
FCC: Linesharing weiter gewährleistet, ebenso Zugang zu den Hausanschlüssen (local loop). Keine Nutzung von neuen Fiberglasanschlüssen für alternative Anbieter (für Covad belanglos).

[Bannerman]

Covad bei 1,45$.
Scheint so, als ob der Markt den Sieg von George Bush morgen Abend vorwegnimmt.

Cheers.

[Bannerman]

Covad nimmt Anlauf für Jahresendrallye.
Voip ist nun landesweit in den großen Ballungszentren erhältlich. Kurs 1,82$ auf Schlußkursbasis, 1,38€.

[Bannerman]

Press Release Source: Covad Communications Group

http://biz.yahoo.com/bw/041209/95156_1.html

Covad Completes Nationwide Rollout of Business-Class VoIP
Thursday December 9, 8:30 am ET
Covad VoIP Now Available in 900+ Cities

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 9, 2004--Covad Communications Group (OTCBB:COVD - News), a leading provider of broadband voice and data communications, today announced it has completed the nationwide rollout of its business-class Covad VoIP (Voice over Internet Protocol). Covad VoIP is now available in 125 major metropolitan markets nationwide, which includes over 900 cities.

ovad VoIP truly integrates high-speed Internet and telephone service, and allows businesses to manage both data and voice calls with a single broadband connection.

"The entire Covad team has worked diligently to implement VoIP service into our nationwide network in a very short period of time," said Charles Hoffman, president and chief executive officer of Covad. "Covad VoIP now offers small and medium businesses across the country an unparalleled suite of services and voice quality that business can rely on, and an attractive alternative to traditional local phone company service."

Michael Lauricella, vice president of telecommunications practices, AMI Research: "All businesses should seriously consider what VoIP service can do for their business. Not only is there the potential to reduce costs but also the productivity benefits are profound. When considering a VoIP solution, look to a provider that can deliver business-class managed voice services over a nationwide network coupled with a robust portfolio of productivity enhancing features and capabilities."

VoIP represents a dramatic transformation in telecommunications that leverages the power of the Internet to enable next generation communications capabilities. It uses a broadband Internet connection such as Covad`s nationwide DSL network to carry local and long distance voice calls instead of the public switched telephone network. This more efficient method of transport results in lower costs compared to traditional phone calls while providing more features and functionality.

"We are extremely pleased by the positive reaction to Covad VoIP in all of our markets around the country," Hoffman said. "Customers like the fact that Covad VoIP offers reliability and quality, and can serve their needs nationwide rather than just in certain regions."

Covad VoIP offers two services: Covad vPBX and Covad PBXi. Covad PBXi is designed to work seamlessly with existing PBX equipment. Covad vPBX is designed as a full PBX alternative. Covad and Covad`s dealer network install the service, train users and provide complete customer support.

Covad`s Dashboard brings an array of capabilities into one common user interface including local and long-distance services, visual fax and voice mail, Instant Messaging, audio and web conferencing, call logs, directory services, "Find me/Follow me" and other features, all managed from one place using one phone number. Covad currently offers several VoIP products custom-tailored small- to medium-sized businesses, and for enterprises needing a virtual Private Branch Exchange (PBX).

Features of Covad VoIP service include:

* Local and Long Distance telephone service
* Voice Optimized Access (VOA) -- the ability to prioritize voice traffic over the network to ensure impeccable quality of voice service through Covad`s network
* Nationwide coverage
* Automated provisioning capabilities
* Service backed by comprehensive service level agreements (SLAs)
* Covad Dashboard an easy-to-use, award winning Web-based user interface
* Call logs
* Find Me, Follow Me functionality that allows a user to receive calls on multiple devices from the users VoIP phone number
* Unified visual voice and fax mail
* Voice and Web conferencing
* Automated Attendant

[Bannerman]

ovad Communications Group, Inc. Communications Services &
Technology
(COVD$1.73)
FCC ISSUES NEW UNE RULES - NET Ari M. Moses, CFA,
212.292.8152
POSITIVE FOR COVAD - REITERATE BUY
Rating: BUY
amoses@k...
Price Target: $5 Market Cap:
$451.0MM

* We are reiterating our BUY rating and $5 price target on Covad
Communications. Our target is based on a 10-year DCF valuation. This
represents a price/2005E sales multiple of 2.8x in line with its
VoIP peers.
* In light of yesterday`s FCC meeting and the issuance of new rules
relating
to the unbundling requirements (UNE) of the incumbent telecom we
thought it
appropriate to revisit our bullish thesis on the company.
* The rules were in line with expectations. Although the final rules
will not
be released in full for several weeks, there seems to be no
surprises coming
out of this meeting. The two issues of particular relevance to
Covad were
UNE-L (regulation allowing facilities-based network providers to
continue to
serve their customers with leased lines from the incumbents) and
line-
sharing (regulation allowing competitive providers to deliver data
services
on the same line that the incumbent delivers voice services).
* UNE-L was preserved - favorable for Covad. Covad relies on UNE-L
for the
delivery of both voice and data services to small- and medium-
business (SMB)
customers. The preservation of UNE-L supports the company`s VoIP
business
which we view as its growth engine. This business, in our view,
should drive
growth over the next several years and mute the impact of both
regulatory
and competitive pressures.
* Line-sharing was not addressed - neutral for Covad. There was some
question
as to whether this issue would be addressed in yesterday`s ruling.
We did
not expect it to be addressed. As it turned out the commission did
not
address these rules. There is sentiment that the commission is
leaning
toward reinstating the line-sharing rules, but the timing of such a
ruling
has yet to be determined. Nevertheless, even in the worst-case
scenario in
which line-sharing would not be reinstated we believe the
implications for
Covad would be minimal. The company is de-emphasizing its consumer
business
and is focusing on the SMB segment. As such, the business driven by
line-
sharing is minimal and should be shrinking. Additionally, the
company has
reached market agreements with SBC, Verizon and Qwest for
delivering these
services.
* Bottom line: Today`s ruling was a net positive for COVD. As there
were no
surprises, the implication of the ruling are already built into the
stock.
We continue to recommend an investment in Covad at current levels
and
believe that there is value to be unlocked. In our view, the risk
to Covad
from regulatory changes has been overblown. While recent rulings and
decisions may impact Covad`s traditional broadband business, the
company`s
entre into the VoIP market and pending introduction of some new
services
should alleviate the impact of recent regulatory trends on Covad`s
future.
----------------------------------------------------
vom 16.12.04
Außerdem gab Covad gestern bekannt, eine Vereinbarung mit Verizon über Linesharing, gültig für die kommenden 4 Jahre, getroffen zu haben.

[robocop15]

Hat sich das Aussitzen doch etwa gelohnt???
Schaut ja mal wieder glänzend aus - Bist Du auch noch drinn V.Mac?

[robocop15]

Hat sich das Aussitzen doch etwa gelohnt???
Schaut ja mal wieder glänzend aus - Bist Du auch noch drinn V.Mac?

[robocop15]

wow!!! 35% im Plus - ich denk das könnte eine deutliche Trendwende werden. Gehts hier in Richtung alte Höchststände aus Ende 2003??
Ich bleib auf Long...

[dirk1965]

no commentlaugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:laugh:

[laab]

wo steckt V.Mac -bin auf seine Meinung gespannt.
@laab

[V.Mac]

Scheinbar nimmt der Deal mit Verizon doch viel Unsicherheit vom Markt und er eröffnet COVD ein enormes Kundenpotential.

Daher ist es aus meiner Sicht nur klar, dass der Kurs so abgeht.

Ich habe mich natürlich gestern auch sehr gefreut, als sich die Aktie um mehr als ein Drittel verbessert hat.

Da ich nach wie vor der Meinung bin, dass sich Covad langfristig erfolgreich in diesem Markt behaupten kann, werde ich auch einfachmal abwarten, wohin uns die Reise noch führen wird.

Ich erwarte für heute natürtlich erst mal nachgebende Kurse, da dieses Niveau auch zu Gewinnmitnahmen führen wird.

Aber langfristig.....gooooooooooo!

V.Mac

[Bannerman]

Press Release Source: Covad Communications Group

BT Selects Covad as U.S. Broadband Partner
Monday February 7, 8:01 am ET
Agreement Enables BT to Offer Covad Business-Class Broadband to Its U.S.-Based Customers

NEW YORK & SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 7, 2005--Covad Communications Group (OTCBB:COVD - News) and BT (NYSE:BT - News) today announced an agreement whereby BT will use Covad`s nationwide network to provide business-class broadband to its U.S.-based customers.

Under the agreement, BT will work with Covad to offer all of Covad`s business-class broadband services in the 44 states, which include more than 900 cities, covered by Covad`s nationwide network.

"Covad`s nationwide broadband network and its high quality business class service enables BT to meet our U.S. customers` needs for flexible and cost effective access," said Kim Johnson, BT Americas General Manager of Product Operations. "Covad allows us to expand our US reach and offer our US customers a variety of cost effective ways to access their BT VPNs, according to their individual site requirements."

"Our agreement with BT adds another major communications provider to our list of key strategic partners who turn to Covad for broadband support," said Andy Lockwood, Covad executive vice president, strategic development. "As a Covad partner, BT can take advantage of our track record of delivering innovative and reliable business-class broadband services to keep their customers a step ahead."

About Covad

Covad is a leading nationwide provider of broadband voice and data communications. The company offers DSL, Voice Over IP, T1, Web hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covad`s network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.

About BT

BT is one of the world`s leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include IT and networking services, local, national and international telecommunications services, and higher-value broadband and Internet products and services.

BT consists principally of three lines of business:

* BT Retail, providing fixed and mobile communications services and solutions and IT and networking services to more than 20 million business and residential customers in the UK. It is also a leading UK Internet services provider.
* BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband, private circuits.
* BT Global Services, providing IT and networking services internationally to meet the needs of multi-site organizations with European operations. BT Global Services operates in more than 130 countries and also offers international carrier services.

In the year ended 31 March 2004, BT Group`s turnover was GBP 18,519 million with profit before goodwill amortization, exceptional items and taxation of GBP 2,013 million.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt

[V.Mac]

Tach Gemeinde!

Das habe ich auch schon gelesen und es stimmt mich wieder etwas positiver.

V.Mac

[Bannerman]

Morgen ist die Bekanntgabe der Jahresergebnisse.

Bin heute wieder groß eingestiegen. Mal schauen wie es sich so entwickelt.


Bannerman

[Bannerman]

Quelle: Covad.com

Covad Communications Group Announces Fourth Quarter 2004 Results; Broadband Lines Increase by 8,300; Business VoIP Stations Grow to 20,500

SAN JOSE, Calif., Feb 23, 2005 (BUSINESS WIRE) -- Covad Communications Group, Inc. (OTCBB:COVD), a leading national provider of integrated voice and data communications, today reported revenue for the fourth quarter of 2004 of $107.7 million, a three percent increase over the $105.0 million reported in the fourth quarter of 2003, and an increase of $2.0 million from the third quarter of 2004.

The company reported a net loss for the fourth quarter of 2004 of $26.0 million, or $0.10 per share, as compared to a net loss of $16.9 million, or $0.07 per share in the fourth quarter of 2003, and a net loss of $13.8 million, or $0.05 per share for the third quarter of 2004. Loss from operations for the fourth quarter of 2004 was $25.1 million, compared to $21.9 million in the fourth quarter of 2003 and $15.3 million for the third quarter of 2004.

Cash, cash equivalent and short-term investment balances, including restricted cash and investments, decreased by $12.3 million to $153.5 million in the fourth quarter of 2004 compared to a balance of $165.8 million at the end of the third quarter of 2004.

Covad ended the year with approximately 533,200 broadband lines in service, an increase of 8,300 lines from the third quarter of 2004. Covad ended the fourth quarter of 2004 with 567 Voice over IP (VoIP) business customers using approximately 20,500 stations.

"In the fourth quarter we achieved our financial and operational guidance, and continued to build momentum for Covad VoIP and broadband services," said Charles Hoffman, president and chief executive officer of Covad. "We also completed our nationwide rollout of Covad VoIP adding new VoIP business customers in 29 states.

"In 2005, we will continue our commitment to aggressively meet the demand for business-class VoIP services as we move forward in our first full year as an integrated voice and data provider," Hoffman continued. "We will focus on providing the highest-quality customer experience through product and service innovation in order to sustain our position as a leader in the hosted VoIP and broadband business markets."

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2004 was a loss of $5.5 million as compared to a loss of $2.2 million in the fourth quarter of 2003 and a profit of $4.1 million in the third quarter of 2004. Refer to the Selected Financial Data, including note 2, for a reconciliation of this non-GAAP financial performance measure to the most directly comparable GAAP measure and other information.

The company`s wholesale subscribers contributed $77.0 million of revenue, or 71 percent, while direct subscribers contributed $30.7 million of revenue, or 29 percent. As of December 31, 2004, broadband lines in service were approximately 454,600 wholesale and 78,600 direct lines, as compared to 445,000 wholesale and 72,000 direct lines reported as of December 31, 2003 and 448,700 wholesale and 76,200 direct lines as of September 30, 2004. In the fourth quarter of 2004, Direct VoIP customers increased to 567, with an increase in VoIP stations of 2,600 over the same time period.

For the fourth quarter of 2004, broadband and VoIP subscription revenue increased five percent to $90.8 million from $86.5 million reported in the fourth quarter of 2003, and up from the $88.8 million reported in the third quarter of 2004. Management uses broadband and VoIP subscription revenue to evaluate the performance of its business and believes these revenues are a useful measure for investors as they represent a key indicator of the performance of the company`s core business. Refer to the Selected Financial Data, including Note 3, for additional information, including a reconciliation of this non-GAAP financial performance measure to the most directly comparable GAAP measure.

For the fourth quarter of 2004, gross margin was $38.5 million or 36 percent of revenue, as compared to $31.6 million or 30 percent of revenue for the fourth quarter of 2003, and $39.7 million or 38 percent of revenue for the third quarter of 2004. Selling, general and administrative expenses were $43.5 million for the fourth quarter of 2004, as compared to $33.8 million in the fourth quarter of 2003 and $35.5 million for the third quarter of 2004.

"Our fourth quarter results reflect our commitment to building a world-class VoIP offering. We invested to create a strong organization to support our sales and operations efforts surrounding the Covad VoIP product," said Susan Crawford, interim Chief Financial Officer.

Operating Statistics

-- At the end of the fourth quarter of 2004, Covad had
approximately 308,000 consumer and 225,200 business broadband
lines in service, representing 58 percent and 42 percent of
total broadband lines respectively. Covad had 567 VoIP
business customers as of December 31, 2004. Business customers
contributed $76.9 million, or 71 percent, of total revenue.

-- Weighted Average Revenue per User (ARPU) for our broadband
lines was approximately $56 per month during the fourth
quarter of 2004, in line with the third quarter of 2004. Covad
VoIP ARPU per customer (excluding resellers) was $1,934 per
month during the fourth quarter of 2004.

-- Net customer disconnections, or churn, for broadband lines
averaged approximately 3.4 percent in the fourth quarter of
2004, an improvement from 3.6 percent for the third quarter of
2004. Net customer disconnects for Covad VoIP was 1.8 percent
for the fourth quarter of 2004.

Business Outlook

Covad expects total revenue for the first quarter of 2005 to be in the range of $105-109 million. Broadband and VoIP subscription revenue is expected to be in the range of $89-93 million with broadband subscriber line growth to be in the range of 10,000-15,000 lines. Covad expects its net loss to be in the range of $27-32 million, and EBITDA loss in the range of $8-11 million. Net change in cash, cash equivalents and short-term investments, including restricted cash and investments, in the first quarter of 2005 is expected to be in the range of negative $24-28 million.

[Bannerman]

Die Seite wird so breit gezogen, dass ich den Text nicht lesen kann.
Ich schreibe jetzt so viele Beiträge, bis wir auf eine neue Seite kommen.

[Bannerman]

[Bannerman]

[Bannerman]

[Bannerman]

[Bannerman]

[Bannerman]

Funzt irgendwie nicht.

[V.Mac]

Das freut mich zu hören, dass du dich erneut für ein Investment bei COVD entschieden hast.
Leider hat der heutige Kurs deine Entscheidung noch nicht belohnt.

Aber ich habe auch vor, zu Kursen unter einem €, die ja wohl doch noch kommen werden, (leider) noch mal nachzulegen.

Jetzt muß ich erst mal noch die heutige Meldung lesen...

V.Mac

[Bannerman]

Das sich das noch nicht gelohnt hat, ist normal. Wenn ich kaufe, geht es meist erstmal 10-15% runter. Aber ich hatte mir schon seit langem einen Zielkurs gesetzt. Wurde zwischenzeitlich wegen mangelnder Liquidität in Frankfurt nicht ausgeführt. Na ja, jetzt bin ich zufrieden und zuversichtlich. Übrigens war noch das Quartalsergebnis im Artikel auf der Covad-Seite/Investorrelations.
Bis denne VMac und viel Erfolg. Bei ca. 1,50$ ist eine untere Wendemarke, bei der der Kurs 5 Mal nach oben gedreht ist in den letzten 12 Monaten.

Gruß,
Bannerman

[Bannerman]

Covad hat einen neuen Chief Financial Officer bekommen.
Vice President David Lynch hat am 2.3.05 100.000 Aktien von
Covad gekauft. Das dürfte ein bullisches Signal sein. Er war
im letzten Jahr im Fokus der Anlegerkritik, nachdem er bei
ca. 3,35 $ Covad-Aktien verkaufte. Gutes Geschäft.

Was den Aktienkurs angeht, gehts ja leider ziemlich runter.
Die Marke von 1 € pro Aktie könnten wir also tatsächlich erreichen. Derzeitiger Kurs 1,09 €/ 1,44 $.

Viel Erfolg allen,

Bannerman

[Bannerman]

Nein, die Welt ist NICHT plötzlich untergegangen.
Trotzdem ist Covad mächtig im Absteigen begriffen.
Vorläufiger Zwischenstand: 0,93 €.

Na denn mal Prost.
B.

[stephi06]

Hat irgend jemand eine Ahnung, was hier los ist? Klar das hier noch kein Gewinn gemacht wird, aber langsam übertreibt man aber ein bisschen ....

[atitlannl]

Covad Communications Group Announces First Quarter Operating Statistics
Thursday April 7, 4:15 pm ET
DSL Subscribers Increased by 14,200 Lines
VoIP Stations Increased 16 Percent to 23,700


SAN JOSE, Calif.--(BUSINESS WIRE)--April 7, 2005--Covad Communications Group, Inc. (OTCBB:COVD - News), a leading national provider of integrated voice and data communications, today announced operating statistics for the first quarter of 2005.
Key operating statistics for the first quarter include:

14,200 digital subscriber (DSL) lines added bringing total DSL lines in service as of March 31, 2005 to 547,400, a three percent increase from 533,200 at the end of 2004.
123 business customers and 3,200 Voice over IP (VoIP) stations added bringing total business customers to 690 and VoIP stations to approximately 23,700 as of March 31, 2005. VoIP stations added represent a 16 percent increase over the end of 2004.
$135.6 million (unaudited) in cash, cash equivalents, short-term investments and restricted cash and cash equivalents as of March 31, 2005, representing a cash usage in the amount of $17.9 million from the end of 2004. Covad`s total cash balance as of March 31, 2005 includes $7.4 million of proceeds from the sale of a portion (2,000 shares) of its holdings in ACCA Networks Co. Ltd., a Japanese broadband provider. Covad plans to sell the remainder of its ACCA holdings.
"Our first quarter 2005 results include strong performance in broadband access lines," said Charles Hoffman, president and CEO of Covad. "We are encouraged by the fact that Covad VoIP sales continue to build momentum and generate increased interest from small businesses. Cash used during the quarter includes our continued investment in our VoIP service offerings."

Covad will conduct its first quarter 2005 financial results conference call at 8:30 am EDT/5:30 am PDT on April 27, 2005. Call-in information will be provided prior to the call.

[atitlannl]

KAUFMAN BROTHERS

Company Note April 8, 2005
Covad Communications Group, Inc. (COVD/OTC) BUY
Communications Services & Technology
Stock Data
Price $1.18
Price Target $5.00
52-Week Range $2.65 - $1.03
YTD S&P Return -2.30%
YTD Stock Return -46%
Float (MM) 256
Avg. Daily Volume 1,259,162
Dividend Yield 0%
Shares Outstanding 261MM
Balance Sheet Date 09/30/2004
Enterprise Value $279.6MM
Market Cap $307.6MM
Net Cash $28.0MM
2004A 2005E 2006E
Revenue (MM) $429A $462 $568
EV/Revenue 0.7x 0.6x 0.5x
EBITDA (MM) $14.7A ($4.0) $74.2
EV/EBITDA 19.0x -69.9x 3.8x
EPS
Mar ($0.06)A ($0.10) —
Jun ($0.03)A ($0.09) —
Sep ($0.07)A ($0.06) —
Dec ($0.10)A ($0.03) —
FY ($0.26)A ($0.27) $0.02
FY P/E — — 59.0x
CY P/E — — 59.0x

Covad Communications provides broadband access and related communications services to businesses and consumers. Covad`s services include a range of high-speed, high-capacity Internet access and related services using DSL,T-1, virtual private network and firewall technologies. Covad`s network covers 96 of the top 100 metropolitan statistical areas and more than 45% of the homes and business in the United States.

DOWN, BUT NOT OUT - REITERATE BUY
• Recent pressure on the stock has been overdone, but it highlights market sentiment. The stock is down nearly 50% year-to-date on what we believe is continued negative sentiment surrounding the company – sentiment that, in our opinion, is unwarranted. We believe that now is the right time to take a fresh look and believe that the stock pullback has been overdone.
• Contributing to the ongoing share pressure was 1Q05 guidance indicating increased losses. While increased spending is necessary for the build-out of the VoIP business, we look for the company to prove its ability to deliver results and improving trends from the VoIP business, and return to cash generation in the not too distant future.
• Recent meetings with management provide continued confidence in business model transition. After spending some time with Covad`s management team, we believe that the strategic transitions from broadband access to integrated voice and data services, and from wholesale distribution to direct distribution are gaining traction and are exceeding expectations.
• Covad pre-released select operational results last night. The company added 14,200 DSL lines and 123 VoIP customers in 1Q05. These results were ahead of our expectations and support our thesis of a stabilization of the core broadband access business and growth from the VoIP business.
• We remain comfortable with our 1Q05 estimates and expect the company to meet its guidance for the quarter. We have not changed our model to reflect these data points as the data is insufficient to draw any specific conclusions other than qualitative support for our bullish thesis. We continue to estimate revenue of $107.9 million, and an EBITDA loss of $9.5 million and EPS of $(0.10).
• We reiterate our BUY rating and $5 price target. We continue to expect the company`s exposure to competitive pressures and regulatory uncertainty to wane and suggest that the recent pullback in the stock is a buying opportunity. The stock is currently trading at 0.7x our 2005 estimated revenues in line with its CLEC peers. However, in our view, the VoIP universe is more representative of Covad`s peer group than the CLECs, as Covad`s opportunity lies in the rollout of its VoIP services and the delivery of voice and data solutions to service providers including the CLECs. Our price target of $5 is based on a 10-year DCF.

Management is committed to this transition and believes that now is the right time to leverage their network to participate in telecom industry trends including regulatory changes, the shift toward hosted IP communications in the SMB marketplace, and demand for enhanced broadband access in support of voice services. Covad pre-released select operational results last night. The company added 14,200 DSL lines and 123 VoIP customers in 1Q05. These results were ahead of our expectations and support our thesis of a stabilization of the core broadband access business and growth from the VoIP business. The VoIP customer count is the metric to focus on. There were 690 VoIP customers at year end, ahead of our 667 estimate. These data points suggest that the company`s VoIP business is gaining the traction we are looking for. Assuming that our ARPU estimate of $1,800 per customer is correct, these additional 23 customers (assuming they were all added on 1/1) could represent as much as an additional $125,000 in revenues for the quarter or 4% upside to our current VoIP revenue estimate. Nevertheless, VoIP billings would still only account for approximately 4% of revenues in the quarter. This data supports our thesis that the company has positioned itself to serve an under-served market and that demand for VoIP solutions in the SMB marketplace should materialize. We are encouraged by this progress and look for qualitative commentary around this progress on the company`s 1Q05 earnings call on April 27, 2005.

The company also reported an addition of 2,300 stations for a total of 23,700. This number is lower than we had projected and implies an average customer size of 34 stations, down from 36 in 4Q04. We are not sure yet what to make of this trend. For the second consecutive quarter the company has added stronger-than-expected customers but fewer-than-expected stations. This trend does demonstrate strong demand for the services, but suggests that Covad`s sweet spot may be among small business rather than medium-size businesses. It is still too early in the development of the VoIP business to draw any conclusions, but this is a trend to keep an eye on. More importantly than this trend, however, will be customer and station ARPU.
Management has suggested that ARPUs are strong and should we see a quarterly uptick in ARPU rather than a decline we have modeled, it could demonstrate the company`s ability to extract greater dollars from its customers than we have projected. We look for further information from the 1Q05 earnings release later this month.
A third consecutive quarter of DSL adds suggest the business may be stabilizing. After beginning 2004 with two quarters of line losses there was concern that the company`s broadband access business was going to bleed away. 1Q05 adds of 14,200 represents the 3rd consecutive quarter of net line additions and is the strongest of the three. While this is a good data point we would not project a significant upside to our revenue estimate from these adds, as anticipated pricing pressure could offset these gains. Nevertheless, we view the trend as a strong data point for our thesis of a stabilization of the core business. Cash burn was lower than projected. Cash burn was guided to accelerate from the prior quarter`s $12.2 million burn rate to a range of $24 to $28 million as the company rolled out its VoIP solution. The company`s reported cash usage of $17.9 million includes proceeds of $7.4 million from the sale of 2,000 shares of ACCA Networks stock. Management plans to continue monetizing this asset over the course of 2005 for about $35 million in proceeds. Adjusting the reported cash burn for these proceeds, the company actually burned $25.3 million in the quarter, in line with guidance and with our $25.2 million estimate.
We remain comfortable with our 1Q05 estimates and expect the company to meet its guidance for the quarter. We have not changed our model to reflect these data points as the data is insufficient to draw any specific conclusions other than qualitative support for our bullish thesis. As discussed above, 1Q05 is expected to be highlighted by increased EBITDA losses due to the ongoing VoIP deployment
spend. The quarter should also reflect some residual Sarbanes Oxley expenses that should be non-recurring. In our view, 1Q05 results should be less of a focus and more attention should be paid to guidance. The company only provides one quarter of guidance but we are looking for improving trends as evidence that 1Q05 may indeed be the trough in losses.

We continue to estimate revenue of $107.9 million, and an EBITDA loss of $9.5 million and EPS of $(0.10). Our estimates, as well as company guidance, are summarized in the exhibits below.

Exhibit 1: Select Financial Estimates
($ in 000s)
Broadband subscriptions Billing 88,718 $ NM 371,492 $ NM 426,739 $ NM
% of Total Billings 92% 0.0% 90% 0.0% 82% 0.0%
VoIP subscriptions Billing 3,332 $ NM 27,093 $ 391.6% 78,408 $ 130.3%
% of Total Billings 3% 0.0% 7% 0.0% 15% 0.0%
High Capacity Circuits Billing 4,078 $ (26.3%) 16,312 $ (18.6%) 16,312 $ 0.0%
Dial-up Billings - $ NM - $ NM - $ NM
Financially Distressed Partners (300) $ NM (1,200) $ NM (1,200) $ NM
Customer rebates and Incentives not subject to deferral (2,000) $ NM (8,000) $ NM (8,000) $ NM
Other revenues, net 14,000 $ 5.8% 56,000 $ 8.2% 56,000 $ 0.0%
Total Revenues 107,828 (0.6%) 461,697 7.6% 568,259 23.1%
Gross Profit 38,990 (3.0%) 183,420 $ 12.5% 269,923 $ 47.2%
Gross Margin 36.2% 1213 b.p. 39.7% 174 b.p. 47.5% 952 b.p.
Total EBITDA (9,532) NM (3,951) $ NM 74,191 $ NM
EBITDA Margin -8.8% 848 b.p. -0.9% (429 b.p.) 13.1% 963 b.p.
EPS (excl. extra. Items) ($0.10) NM ($0.27) NM $0.02 NM
Basic Shares Outstanding 260,584 260,584 260,584

Exhibit 2: Company Guidance
Guidance KBRO Estimate
Total Revenue $105-$109M $108M
Subscriber Line Count +10-15K Lines + 11.5K Lines
Broadband Subscription Billings $87-$90M $89M
VoIP Subscription Billings $2-$3M $3.3M
High Capacity Circuit Billings $3.5-$4.5M $4.1M
EBITDA ($8)-($11)M ($9.5)M
Net Income ($27)-($32)M ($26)M

Takeaways From Recent Management Meeting
Management is exploring an AMEX listing – for better or worse. Management expects to convert a deferred gain of $54 million that resulted from the deconsolidation of BlueStar Communications in 2001. This gain will be recognized in retained earnings resulting in positive retained earnings. As such, the company will become eligible for a listing on the AMEX. We have heard both positive and negative reactions to this idea.
We expect the company to be prudent in exploring its options and encourage management to weigh the various factors carefully before making a decision. While an AMEX listing would expand the base of addressable investors it would also reduce liquidity and could signal a lack of confidence in the ability to execute toward a NASDAQ listing.
We believe that if management focuses on managing its business rather than managing its stock price, the stock will be stronger in longer term. We share management`s frustration with the current price and recent pressure but we remain confident that the company`s strategy is sound and that execution remains key to altering investor perception. That said, an argument can be made both for and against an AMEX listing. No matter which path the company takes the market will decide whether it likes the idea or not. We continue to focus on the company`s opportunity and fundamentals and believe that with or without such a listing the company can deliver value to shareholders. Covad is positioning itself to meet the evolving demands of its partners/customers. While the company is intent on shifting distribution to at least a 50/50% split wholesale/direct, it is clear that wholesale customers will continue to play a role in Covad`s business model. While the company has been hurt by transitioning business models of key customers including AT&T, EarthLink, AOL, and MCI, new services and the company`s transition to a voice and data company have positioned it to continue to serve these customers in new ways. AOL, for example, is expected to renew its efforts to sell broadband service, namely Covad`s DSL. We believe that Covad`s newly introduced Voice Optimized Access (VOA) will help AOL differentiate itself as it rolls out its newly announced VoIP services. EarthLink is expected to trial Covad`s Line Powered Voice service later this year as it explores telephony offerings. Additionally, management believes that the pending SBC/AT&T and Verizon/MCI or Qwest/MCI mergers should have minimal negative impact on its business, and in fact offer opportunity for expanded relationships. We believe that these mergers are a prelude to a nationwide push by the RBOCs and as such they may be looking for out of region partners. Covad, in our view is positioned as a partner of choice given its nationwide network and its existing relationship with all of these entities save Verizon. Although it is still too early to project the impact of any of these opportunities, it is evident that the company is innovating and evolving and looking for means of leveraging its strongest asset, namely its nationwide network. Management recognizes the risk of too great a dependence on wholesale customers and hence its focus on leveraging its VoIP initiative to develop a strong direct distribution channel. Nonetheless, these wholesale partners continue to offer opportunity for the company and we expect these relationships to continue delivering results. The regulatory front is settling down, but is still viewed as an overhang. Over the course of the past year there has been a lot of uncertainty surrounding Covad relating to regulatory changes and the potential impact on the business model. As we have been suggesting since our initiation in December, the company has muted the impact of these regulatory changes through the transition of its business model. Management recognizes that a regulatory driven business model is too risky and cannot support future growth.

While portions of Covad`s model were indeed affected by the evolving regulatory framework, we believe the impacts are minimal. The company, however, is not sitting idly by waiting to see what the effects might be but rather are leveraging these regulatory changes and their nationwide network to create new services. For example, with the introduction of Line Powered Voice, they have created an opportunity out of the elimination of UNE-P. With the exception of the pending mega mergers (i.e. AT&T/SBC) the company does not foresee any other near-term regulatory issues that should impact it. While we do not believe there is such thing as regulatory clarity, we do believe that a period of regulatory stability should be positive for Covad and help lessen the overhang. The company continues to trial wireless technologies as a means of lessening its dependence on the ILECs. Covad has been trialling WiMax as a last mile alternative and is quite encouraged by results to date. They have completed a technical trial in Louisville, Kentucky and are beginning market trials. They expect to
have their first commercial launch by year-end 2005. The company does not plan to replace its entire UNE Loop infrastructure with wireless technology, but rather is planning, initially, to use wireless to fill gaps in its network and to expand its network reach. In addition to lessening its replacement on ILEC, wireless would extend further than DSL can (DSL can only reach 18,000 feet from a CO) thereby
expanding the addressable customer base. Wireless is not expected to become a product offering, but rather a network resource that would enable the company to deliver product to more customers while lessening the regulatory uncertainty associated with leasing last mile copper loops from the ILECs. We reiterate our BUY rating and $5 price target. We continue to believe that as Covad moves up the value chain through offerings such as this and its focus on providing VoIP services to the small and medium business market, its exposure to competitive pressures and regulatory uncertainty should wane and Covad should emerge as a leading provider of integrated voice and data services. We suggest that the recent pullback in the stock is a buying opportunity. The stock is currently trading at 0.7x our 2005 estimated revenues in line with its CLEC peers. However, in our view, the VoIP universe is more representative of Covad`s peer group than the CLECs, as Covad`s opportunity lies in the rollout of its VoIP services and the delivery of voice and data solutions to service providers including the CLECs. Additionally, given the company`s strong balance sheet and trend toward cash flow generation and profitability, we suggest that the 2.3x price/2006 estimated sales implied by our $5.00 price target is reasonable. Our price target is based on a 10-year DCF.

[atitlannl]

Es scheint Himmel zu werden

Schon 1,29, das sind +25% in 4 Tage

http://finance.yahoo.com/q/bc?s=COVD.OB&t=5d&l=on&z=m&q=l&c=

[amok01]

Gestern war ja ein sehr schöner Tag in den USA für COVD.Seid dem die Dollar Marke fast berührt wurde steigt der Wert unter hohen Umsätzen.Könnte mir diese Woche sogar noch die 2Dollar vorstellen.Es gab ja auch eine Empfehlung mit Kursziel 5 Dollar.Na dann wolln wer mal heute mittag in diese Richtung laufen und dem Analysten den Gefallen tun.

[Bannerman]

A dog is a dog is a dog.

Ein Vogel macht noch keinen Frühling. So schnell, wie die Kurse nach oben geschossen sind, so schnell sind sie auch wieder eingebrochen.

Mittlerweile kann man ja auch in Deutschland VoIP über Breitband bekommen, und sogar relativ einfach. Ich denke mal, dies ist eine Zukunftstechnik. Ich sehe schon einen Markt für Videotelefonie und Telefonieflatrates.

Covad wird da bestimmt von profitieren. Sie sind ja nach eigenen Angaben praktisch in allen großen Ballungsgebieten in den USA vertreten. Dabei ist die Aktie gerade mal so hoch bewertet wie nach Ch11. Aber in den USA ist gerade der Höhepunkt der Immobilienspekulation. In Covad dürften gerade viele Kleinanleger investiert sein, die Geld abziehen und dies in Immobilien stecken, oder die dies bereits getan haben und nun ihre Aktienanlage liquidieren, um die gestiegenen Zinsen ihrer Hypotheken mit beweglicher Verzinsung (ARM) zu bezahlen.

Sollte es zu einem Immobiliencrash kommen, sehe ich die Resultate erstmal positiv für Covad, so seltsam das klingt.
Die Leute müssen sich wieder andere lukrative Anlagemöglichkeiten für ihr Geld außerhalb von Immobilien suchen, und dabei dürfte Technologie überdurchschnittlich profitieren. Es wären dann also Mittelzuflüsse zu erwarten statt Mittelabflüsse. Derzeit wird das Geld von Immobilien zu Immobilien recyclet.

Die Unternehmenssitutation für Covad selbst sehe ich positiv. Endlich scheint es wieder Wachstum zu geben, sowohl bei DSL (+16000/1Q05) als auch bei Voip (+1600 auf 23000 /1Q05). Wenn der Trend anhält oder sich gar beschleunigt, wie ich vermute, ist Covad gut positioniert.

0,93 € ist viel zu wenig. Vielleicht gehen wir aber nochmals auf die 1,03 $ Marke runter.
Ich jedenfalls bleibe dick investiert, Abwärtspotenzial dürfte begrenzt sein.
Gruß an alle mitleidenden Investierten,
Bannerman

[Bannerman]

Press Release Source: Covad Communications

SBC, AT&T Reach Services Agreements with Covad
Thursday May 5, 2:30 pm ET
Covad Will Extend Broadband Access to Merged Companies, to Enable Expansion of VoIP Services Out-of-Region, Promote Vigorous Competition in Telecommunications Industry

SAN ANTONIO--(BUSINESS WIRE)--May 5, 2005--SBC Communications Inc. (NYSE:SBC - News) and AT&T Corp. (NYSE:T - News) together have reached a services agreement under which Covad Communications Group Inc. (OTCBB:COVD - News) would extend broadband access to the merged companies, which would help the combined entity expand Internet protocol (IP) services, including voice-over-Internet-protocol (VoIP), out-of-region to consumers and businesses. The deal, effective upon completion of the SBC and AT&T merger, demonstrates the parties` commitment to promoting vigorous competition in the telecommunications industry among product and service providers.

"Consumers will continue to benefit from competition in the provision of telecommunications services, making them the real winners here," said Mark Keiffer, senior vice president-business marketing for SBC. "And agreements such as these will be especially important in enabling SBC, post-merger, to become a more effective out-of-region competitor. We look forward to working with Covad not only in offering services to consumers and businesses outside of our territory, but in building on the excellent relationship that exists between AT&T and Covad today to work to bring additional services to the market, post-merger."

AT&T entered into a long-term commercial agreement with Covad on Jan. 1, 2002, buying high-speed Internet access services for resale. SBC entered into an agreement for similar services with Covad on Nov. 12, 2001. This new commercial agreement, along with the current contracts, would continue past the completion of the SBC-AT&T merger.

SBC and Covad also signed a separate commercial agreement that covers the provision of line-sharing over copper and remote-terminal facilities in SBC`s territory for a four-year period. Line-sharing allows communications providers like Covad to deploy high-speed DSL broadband on the same line customers use for their voice phone services.

"These agreements are very important to Covad as they ensure that we will continue to be a strong competitor and supplier to AT&T and SBC now and after their merger," said Charles Hoffman, president and chief executive officer of Covad. "It allows the provision of a robust suite of voice and data services over Covad`s extensive network of collocated facilities. In particular, we look forward to supporting the combined company`s out-of-region competitive efforts. We are pleased about the opportunity to continue working with SBC and AT&T, and to be a key supplier for the combined entity."

Covad, based in San Jose, Calif., is a leading nationwide provider of broadband voice and data communications for small and medium businesses, and a key supplier of high-speed Internet access for competitive voice and Internet services providers. Founded in 1996, Covad owns and operates the only nationwide DSL broadband network in the United States.

"Covad has been a valuable supplier," said Regina Egea, AT&T vice president of global access strategy and bandwidth product management. "We`re very pleased that we will continue to utilize the competitively priced and high-quality services and capabilities of Covad once our merger with SBC is completed and the combined company competes to deliver IP, including VoIP, services around the nation."

Other specific terms of the agreements are not disclosed. Completion of the SBC-AT&T merger is expected by the end of this year or early 2006, following all regulatory and governmental approvals.

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves 50.4 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation`s leading providers of Internet services. SBC companies also offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com.

For more than 125 years, AT&T (NYSE "T") has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.

----------------
derzeit + 18% , 1,37 $

[atitlannl]

Ist sehr gutes news.

Auch gut für die Bewertungen:

http://earnings.nasdaq.com/earnings/analyst_recommendations.…

[Bannerman]

Covad weist ein rasantes Wachstum bei Internettelefonie in den USA auf. Ich denke, es könnte hier auch zu durchaus zu positiven Überraschungen kommen. Dranbleiben!
----------------------------------------------

INTERNETTELEFONIE

"In fünf Jahren ist das Festnetz tot"

Das Telefonieren via Web hat die Telekommunikationsbranche in Bewegung gebracht. Die Provider unterbieten sich wie im Rausch, unterdessen ist es möglich, für nur einen Cent quer durch Deutschland zu telefonieren. Analysten prophezeien der neuen Technik einen fulminanten Erfolg - und die Telekom profitiert wie eh und je.

Hamburg - Selten zuvor hat eine neue Technologie die Telekommunikationsbranche so verändert, wie es derzeit VoIP tut. Das kryptische Kürzel steht für "Voice over IP", was frei übersetzt so viel wie Telefonieren über das Internet bedeutet.

Allein in Deutschland nutzen seit Mitte 2004 rund eine halbe Million Menschen die neue Technologie. Für 2005 erwartet das Marktforschungsinstitut IDC eine Verdoppelung der VoIP-Anschlüsse, 2007 sollen es bereits 15 Millionen sein.

"In spätestens fünf Jahren hat VoIP die heute bekannte Telefonie komplett abgelöst", ist sich Philip Yim, Vizepräsident von Allied Telesyn sicher. Das Unternehmen bietet unter anderem Netzwerklösungen für Service-Provider an, die ihren Kunden weltweit das Telefonieren über das Internet ermöglichen. Die Deutsche Telekom will nach eigenen Aussagen innerhalb der nächsten Jahre ihr Netz zu 100 Prozent auf IP- basierte Gesprächsvermittlung umstellen.

Voipen wird zum Volkssport

Bislang wurde Voice over IP nur von technisch versierten Computerfreaks genutzt, deren Nutzungsverhalten kaum Rückschlüsse auf das Verhalten von Normalverbrauchern zulässt. Doch dank einer rasanten Entwicklung lässt sich mittlerweile nicht mehr nur mit einem PC über das Internet telefonieren, sondern auch über spezielle VoIP- Telefone, die wie ein herkömmliches Telefon aussehen und auch so funktionieren.

Unternehmen wie Nikotel bieten solche Telefone bereits zu Preisen von deutlich unter 100 Euro an und liefern sie komplett vorkonfiguriert an ihre Kunden aus, so dass die Geräte nur noch mit dem DSL-Anschluss verbunden werden müssen.

Noch komfortabler lässt sich Voice over IP nutzen, wenn die Gespräche mit herkömmlichen analogen oder ISDN-Telefonen geführt werden können, die ja bereits in jedem Haushalt vorhanden sind. Möglich wird das mit einer kleinen Box, die der Berliner Hersteller AVM entwickelt hat. Die so genannte Fritzbox Fon sitzt wie eine Schaltstelle zwischen dem DSL-Anschluss und dem Computer. Einmal installiert, können damit Telefonate auch ohne eingeschalteten Computer über das Internet geführt werden.

Die zahlreichen Anbieter schneller Internetzugänge sehen Voice over IP als die Chance schlechthin, potenzielle Kunden für sich zu gewinnen.

Kaum ein DSL-Anbieter, der nicht mit günstigen Telefonaten über das Internet wirbt. Unternehmen wie 1&1, AOL Time Warner Chart zeigen und Freenet Chart zeigen unterbieten sich gegenseitig mit Minutentarifen von bis zu ein Cent für Gespräche quer durch Deutschland zu jeder Tages- und Nachtzeit. Da verwundert es kaum, dass auch T-Online Chart zeigen, Tochter der Deutschen Telekom Chart zeigen, inzwischen selbst VoIP anbietet, um seinen großen Kundenstamm nicht an die Konkurrenz zu verlieren.

Allerdings muss dabei offenbar Rücksicht auf die Konzernmutter genommen werden. Der angebotene Tarif von knapp 3 Cent pro Minute für ein Telefonat über VoIP ist nur im direkten Vergleich zu den Preisen der Telekom konkurrenzfähig.

Kein Anschluss ohne Telekom

Die Gesprächsqualität von Telefonaten über das Internet ist mittlerweile mit der herkömmlicher Telefonate über das analoge oder das ISDN-Netz vergleichbar. In Verbindung etwa mit einer Fritzbox lassen sich auch gewohnte Komfortmerkmale wie die Rufnummernanzeige oder "Rückruf bei Besetzt" nutzen.

Johannes Nill, Geschäftsführer von AVM, betont, dass IP-basierte Dienste aus Sicht der EU-Kommission "mehr Leistung bei geringeren Kosten" bedeuten. "Voice over IP ist gut für die Verbraucher, die mehr Leistung bekommen und gleichzeitig Geld sparen", sagt Nill. "Und Voice over IP ist gut für die Industrie - es schafft neue Produkte, Dienstleistungen und Wertschöpfung."

Noch macht allerdings Voice over IP den Festnetzanschluss nicht ganz überflüssig. Zum Beispiel lassen sich nicht alle Rufnummern über das Internet-Protokoll erreichen. Der Notruf 112 funktioniert meist nicht, da die örtliche Zuordnung ohne Vorwahl bislang noch nicht gewährleistet werden kann.

Außerdem ist der Telefonanschluss bei fast allen Anbietern auch immer noch Voraussetzung, um überhaupt einen DSL-Anschluss nutzen zu können. Die Grundgebühr fällt also weiterhin an, selbst wenn man den Telefonanschluss gar nicht mehr nutzen möchte.

[atitlannl]

Bannerman, ich bleibe dran.

[atitlannl]

Angebot Zusammen mit COVAD

AOL Aims to Get Up to Speed With DSL

By David A. Vise
Washington Post Staff Writer
Thursday, June 2, 2005; D05



America Online Inc. yesterday began offering high-speed Internet access with AOL e-mail and content in the Washington area and Chicago, a move that company officials hope will stem the loss of dial-up users as the service is rolled out nationally later this year.

The Dulles-based firm has lost more than 5 million subscribers to faster and cheaper Internet services in recent years. The new $29.95 per month service, dubbed AOL High Speed, gives the company something fresh to offer fleeing dial-up users. AOL officials said they plan a series of cable television ads and online marketing to encourage the firm`s dial-up subscribers, who pay $23.90 per month, to switch to AOL High Speed.

"This makes a lot of sense," said Charlene Li, an analyst with Forrester Research. "If you have any desire to stay with AOL, you are going to look at this deal very seriously. It sounds smart."

Despite losing about 2.3 million subscribers in the past year alone, AOL, a division of Time Warner Inc., remains the nation`s biggest Internet service with 21.7 million subscribers. The company`s ad revenue has begun picking up again after a few years of decline.

The new high-speed product is the first time AOL has offered a simple, competitively priced way for its subscribers to get faster online access and keep AOL services and content, too.

In the Washington area, AOL High Speed is priced in the same range as standard high-speed Internet services sold by Comcast Corp. and Verizon Communications Inc., which dominate the market. But in Chicago and other cities yesterday, rival service provider SBC Communications Inc. began aggressively cutting the price of its Yahoo high-speed offering to just $14.95 a month, bringing prices for fast Internet connections below the cost of AOL dial-up for the first time.

Both the AOL and SBC high-speed offerings operate over the same lines used by home telephone service. Cable television companies typically charge more for their services, which they say are even faster.

The five-week test in Washington and Chicago by AOL reflects a fundamental shift in the online business environment and demonstrates how the company is trying to adapt. Several years ago, AOL made its name by offering a one-size-fits-all dial-up service. But the world changed, and computer users left for cheaper dial-up or faster connections provided by others.

Now, with its $9.95 Netscape dial-up service, its $29.95 AOL High Speed and its traditional dial-up offering, AOL has a broad range of products at different price points, a move analysts said is essential given the segmentation in the marketplace.

AOL is also looking to capitalize on the boom in Internet advertising by beefing up its free AOL.com Web site. It hopes to attract millions of computer users to the site with music, games, news and other content, as well as by giving away free AIM.com e-mail accounts. If it works, the AOL.com portal strategy would be similar to Yahoo Inc.`s business model.

To provide the one-stop shopping experience for high-speed Internet service, AOL is partnering with telecommunications wholesaler Covad Communications Group Inc., a California firm that leases phone lines from the regional phone companies, providing access to about 50 million homes.

AOL will handle all the branding, marketing and customer-service calls while Covad will provide the high-speed phone lines and modems. David McMorrow, executive vice president of Covad, said the partnership with AOL is likely to benefit both companies because consumers will have the ability to get high-speed service through one phone call to AOL. He predicted that AOL`s strong brand name nationally, coupled with Covad`s coverage, would give America Online a way to begin recovering from subscriber losses.

"The two parties are putting together a compelling offer in the market, not only for AOL users, but for folks looking for a good combination of broadband and content at a competitive price," McMorrow said. "They have customers and brands and experience at the Internet layer, and we have the infrastructure, footprint and systems."

But if yesterday`s aggressive price cutting by SBC leads to slashing in the price of high-speed Internet connections around the country, AOL and Covad may find themselves with fewer customers and less revenue to share than they had projected.

© 2005 The Washington Post Company




http://www.washingtonpost.com/wp-dyn/content/article/2005/06…

[atitlannl]

Covad Communications Receives TMC Labs 2005 Innovation Award from INTERNET TELEPHONY(R) Magazine
Tuesday July 5, 12:15 pm ET
Covad VoIP with Voice Optimized Access Singled Out for Outstanding Innovation


SAN JOSE, Calif.--(BUSINESS WIRE)--July 5, 2005--Covad Communications Group, Inc. (OTCBB:COVD - News), announced today that Technology Marketing Corporation`s TMC Labs division named Covad VoIP with Voice Optimized Access (VOA) as a 2005 Innovation Award winner from INTERNET TELEPHONY magazine.
"We like to think that Covad Voice Optimized Access is similar to buying your voice traffic a first-class ticket on the Covad network," said Charles Hoffman, president and chief executive officer for Covad. "Covad VoIP with VOA prioritizes the telephone traffic on our nationwide network -- offering the best possible quality and experience for our customers."

"Covad VoIP has clearly demonstrated to the staff of TMC Labs that Covad`s product and service are truly innovative in the burgeoning VoIP/IP telephony industry. Never before in this industry has there been a greater need to highlight the most inventive VoIP products and services," said Rich Tehrani, Group Publisher and Editor-in-Chief of INTERNET TELEPHONY.

"The TMC Labs Innovation Awards are based solely upon the uniqueness of the company`s offering or how pioneering the particular product or service is. It is not based on company revenue or number of products sold. It is based on the concept that Covad VoIP is innovative," according to Tom Keating, CTO and TMC Labs Editorial Director.

Keating continued, "Covad VoIP deserves this great honor for creating a ground-breaking VoIP product or service. I look forward to seeing other innovative solutions from Covad as they continue to contribute to the future of the VoIP/IP telephony marketplace."

The TMC Labs 2005 Innovation Award highlights will be published in the July and August 2005 issues of INTERNET TELEPHONY magazine

[atitlannl]

Covad Introduces Enhanced VoIP Services for Businesses with PBX and Key Systems
Wednesday July 13, 9:00 am ET
Covad PBXi Voice Service Delivers VoIP Advantages and Savings Without Abandoning Existing Telephone Equipment


SAN JOSE, Calif.--(BUSINESS WIRE)--July 13, 2005--Covad Communications Group, Inc. (OTCBB: COVD - News), a leading nationwide provider of integrated voice and data services, today announced Covad VoIP PBXi Voice Service, a business-class Voice over Internet Protocol (VoIP) service that leverages existing on-premises phone equipment while providing significantly lower operating costs.
According to IDC, approximately 85 percent of small- and medium-sized businesses have invested in on-premises phone systems in order to support their growing employee base and expanding telecommunication needs. Covad VoIP PBXi Voice Service enables businesses to utilize their existing on-premises telephone system and gain significant cost advantages VoIP provides. By protecting their Private Branch Exchange (PBX) or key system investment, businesses have no up-front capital expenses to integrate Covad VoIP PBXi Voice Service.

"While a fully managed VoIP service may be ideal for many businesses, some business owners still want to retain their existing phone system and reduce their telecom operating expense by up to 25 percent," said Jeff Ahlquist, vice president, corporate development for Covad. "For those businesses, Covad VoIP PBXi Voice Service is an ideal fit. It allows them to retain their equipment investment, reduces monthly fees and positions them to easily adopt next-generation VoIP once they are ready."

Covad VoIP PBXi Voice Service seamlessly integrates into business phone systems because all the original handsets, phone numbers and equipment are retained. The business customer experiences the same sound quality and user model they are accustomed to, making usability simple.

"Installation and set-up of Covad PBXi Voice Service was simple, and there was no learning curve for my employees because we are using all the same phone equipment," said Ken Moss of Berkel Midwest, a Covad VoIP PBXi Voice Service customer. "Now that we have both voice and data traveling on a T1 line, we have experienced even more savings and fewer problems because we only have to work with one provider, Covad, for all our sites."

William Stofega, research manager of voice services for IDC, said: "Covad VoIP PBXi Voice Service allows businesses to keep their premises-based equipment while introducing them to the advantages of VoIP. Once the customers` PBX or key system reaches the end of its seven to nine year life-cycle, Covad has an excellent opportunity to easily migrate that customer to their hosted VoIP service that offers advanced communications features to keep their business efficient."

Covad VoIP PBXi Services are available in four bundles designed for businesses with five to 100 employees per location. A key enhancement of Covad VoIP PBXi is its ability to directly integrate with PBX or key systems using a Primary Rate Interface (PRI) or analog interface. This provides Covad the ability to reach a larger number of businesses with the cost advantages of VoIP.

The four Covad PBXi Service bundles are:

Covad PBXi Analog I - Supports up to 8 analog ports/trunks on the PBX. This package includes 5,000 local and long distance minutes per month. Typical number of employees per site is 5-30.

Covad PBXi Analog II - Supports up to 16 analog ports/trunks on the PBX. This package includes 10,000 local and long distance minutes per month. Typical number of employees per site is 30-60.

Covad PBXi Digital I - Supports one T1 and one PRI interface on the PBX. Package includes 15,000 local and long distance minutes per month. Typical number of employees per site is 60-100.

Covad PBXi Digital II - Supports two incoming T1`s and one PRI interface on the PBX. Designed for businesses with high data bandwidth requirements. Great for locations that serve as a headquarters office supporting multiple branch offices/remote locations or that are planning to add more employees. Package includes 15,000 local and long distance minutes per month. Typical number of employees per site is 60-100.

Set-up costs for Covad VoIP PBXi Voice Service begin at $300. All services are bundled with local and long distance minutes, a Cisco 2431 IAD and Covad Web hosting/email services. Each additional minute of usage is only 2.5 cents.

For more information on Covad VoIP PBXi Voice Service please call 1-877-268-2353 or go to www.covad.com.

[atitlannl]

EARTHLINK REPORTS STRONG SECOND QUARTER RESULTS

ATLANTA, JULY 26, 2005 — EarthLink, Inc. (NASDAQ: ELNK), the nation`s next generation Internet service provider (ISP), today announced financial results for its second quarter ending June 30, 2005. Highlights for the quarter include:

Net income of $43.8 million, or $0.31 per share
Income from operations of $47.9 million
Adjusted EBITDA (a non-GAAP measure) of $60.1 million
Free cash flow (a non-GAAP measure) of $55.3 million
A repurchase of 7.6 million shares of EarthLink common stock
" EarthLink once again delivered strong financial results, driven by management`s focus on operational excellence and its continuing commitment to long-term shareholder value," said Garry Betty, EarthLink`s president and chief executive officer. " Consistent with this commitment, EarthLink has repurchased 25 percent of the company`s shares over the past three years."

Betty added, " The stability and success of our existing Internet access business continue to provide the leverage and cash flow to fuel growth opportunities in next generation broadband wireline and wireless voice and data products. Building on our existing voice initiatives, EarthLink announced during the quarter a joint market trial with Covad that will combine the traditional telephone connection with advanced features of VoIP and will enable us to offer DSL services at speeds of 6 Mbps to 10Mbps."

Second Quarter Financial Results

USW
Sehe:
http://www.earthlink.net/about/press/pr_Q2_2005/

[atitlannl]

Hughes Network Systems Selects Covad to Offer DSL to Enterprise Markets
Tuesday July 26, 8:00 am ET

SAN JOSE, Calif.--(BUSINESS WIRE)--July 26, 2005--Covad Communications Group, Inc. (OTCBB:COVD - News), a leading nationwide provider of integrated voice and data services, and Hughes Network Systems, LLC (Hughes), a leading provider of broadband satellite products and services, today announced that Covad has been selected as a primary DSL broadband supplier for Hughes` recently announced DIRECWAY® Unified Broadband service offering. Through this relationship, Hughes is now able to offer mid-tier and large enterprise customers managed network service solutions, including both satellite broadband and Covad`s DSL offerings.
Under the agreement, Covad will wholesale both its ADSL (asymmetrical digital subscriber line) and SDSL (symmetrical digital subscriber line) services to Hughes. With Covad`s broadband services available in its portfolio, Hughes customers will be able to select satellite or DSL broadband services, or both, at each of their locations depending on their business needs.

"Working with Covad and utilizing its extensive nationwide DSL broadband network is a key component of the Hughes DIRECWAY Unified Broadband offering," said Mike Cook, senior vice president of sales and marketing for the North American division at Hughes. "This relationship allows us to address, within a single managed network infrastructure, the entire market for broadband services by offering the ideal combination of wireline and satellite technologies."

"We are pleased to grow our wholesale relationships to include Hughes Network Systems, reflecting Covad`s commitment to optimizing our nationwide network," said Charles Hoffman, president and chief executive officer of Covad. "With this new agreement, Hughes will benefit from new revenue opportunities, while its customers enjoy the experience of Covad`s broadband services."

[atitlannl]

Press Release Source: Covad Communications Group, Inc.


Covad to List Shares on American Stock Exchange Under Stock Symbol ``DVW``


Wednesday July 27, 8:00 am ET


SAN JOSE, Calif.--(BUSINESS WIRE)--July 27, 2005--Covad Communications Group, Inc. (OTCBB:COVD - News), a leading nationwide provider of integrated voice and data services, today announced its shares will be listed on the American Stock Exchange (Amex) under the symbol "DVW" for data, voice and wireless.
"Covad is moving to the Amex because it reinforces our strategic initiative to maximize shareholder value," said Charles Hoffman, Covad president and chief executive officer. "Listing on the Amex brings more order and stability to the trading environment and process, and should increase Covad`s level of institutional ownership."

John McGonegal, senior vice president of the Amex Equities Group, said, "We are excited to welcome Covad Communications Group, Inc., to the American Stock Exchange. We look forward to providing them the support and services a growing company needs to compete in today`s marketplace."

Covad shares will begin trading on Amex on July 28, 2005. The Amex`s approval is contingent upon Covad being in compliance with all applicable listing standards on the date its stock begins trading on the Amex and may be rescinded if Covad is not in compliance with such standards. Covad was previously traded on the OTCBB.

Covad has selected Kellogg Group as its specialist.

About Covad

Covad is a leading nationwide provider of broadband voice and data communications. The company offers DSL, Voice over IP, T1, Web hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covad`s network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles, San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.

About American Stock Exchange

The American Stock Exchange® (Amex®) is the only primary exchange that offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 164 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The foregoing contains "forward-looking statements" which are based on management`s current information and beliefs as well as on a number of assumptions concerning future events made by management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covad`s control that could cause actual results to differ materially from such statements. These risk factors include the impact of increasing competition, decreasing prices for competing broadband offerings, consolidation in the telecommunications industry, future changes in telecommunications regulations, litigation concerning current regulations and changes in technologies, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad`s 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Covad disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad.

[Bannerman]

Covad sucks!

[Bannerman]

BIG TIME!

[atitlan]

Vielleicht weiss es nicht jeder aber es gibt auf ws online noch ein thread über Covad, nr 278900

[Bannerman]

Und schon gehts wieder runter. Wenigstens konnte ich ein paar abladen. Leider nicht alle. Grüße an die Standhaften. Bannerman

[CovadFan]

Antwort auf Beitrag Nr.: 20.983.935 von Bannerman am 28.03.06 23:07:12

@ Bannermann,
Ich glaube du sieht die momentane Situation zu negativ.
Ohne Negativmeldung gings mal etwas runter. Es gibt da Meinungen, daß hier ganz bewußt die 2 $ Marke unterschritten wurde, um an die Aktien, bei denen ein Stopp loss von 2 $ und weniger gesetzt wurde, zu kommen.
Es häufen sich auch die Gerüchte, das sich mit der DirecTV Group was anbahnt (WIMAX).
Meiner Meinung nach gehts dieses Jahr noch richtig hoch.
Es würde mich nicht wundern, wenn der Kurs 2-stellig wird.
Gruß CovadFan

[Bannerman]

NoText (Thread soll nicht sterben)
Bannerman

[Bannerman]

Antwort auf Beitrag Nr.: 21.887.498 von Bannerman am 31.05.06 13:06:58

NoText. (Thread soll nicht sterben)
Bannerman

[V.Mac]

Sympathieantwort !

V.Mac

[Bannerman]

Hi v.mac, schönen Dank für Deine Sympathieantwort. Habe mich sehr darüber gefreut. Ich schau ab und zu mal hier in den Thread. Covad hat mich schon sehr viel Nerven gekostet, aber im Gegensatz zu Google-Puts hat es mich nie im Stich gelassen bzw. mich schon gut wieder herausgerissen. Derzeit an der Seitenlinie, aber die Einstiegskurse werden wieder kommen. Grüße, Bannerman

[Bannerman]

Hi v.mac, schönen Dank für Deine Sympathieantwort. Habe mich sehr darüber gefreut. Ich schau ab und zu mal hier in den Thread. Covad hat mich schon sehr viel Nerven gekostet, aber im Gegensatz zu Google-Puts hat es mich nie im Stich gelassen bzw. mich schon gut wieder herausgerissen. Derzeit an der Seitenlinie, aber die Einstiegskurse werden wieder kommen. Grüße, Bannerman

[arnouxx]

Dann will ich mich auch einmal melden.

Die Einstiegskurse werden wieder kommen, jedoch erst ab Ende Oktober vermutlich. Hierfür halte ich mir Kapital offen.

[Bannerman]

Wie gehts weiter? Ist der Boden erreicht oder befinden wir uns nur auf einem Absatz vor dem finalen Sell Off?
Das dürfte sich bald entscheiden. Vielleicht bringt der Machtwechsel in Senat und Repräsentantenhaus ja auch einen Politikwechsel in der FCC, der zu einer stärkeren Regulierung mit mehr Wettbewerb auf dem Breitbandmarkt in USA führt. In den letzten Jahren hat ja die USA in dieser Zukunftstechnologie international ziemlich an Boden verloren (ca. von Platz 1 auf Platz 15).

B.

[Bannerman]

Antwort auf Beitrag Nr.: 25.953.785 von Bannerman am 05.12.06 12:19:16

[Bannerman]

Covad derzeit im Kohlenkeller. Es ist ein Graus.