March 7, 2000 2:45 AM PST

STOCKS TO WATCH: Breakaway Solutions, Datatec, Lam, Teligent and Terayon Communications

Expect the following technology stocks to be among Tuesday's most actively traded issues: Breakaway Solutions, Datatec Systems, Lam Research, Teligent and Terayon Communications.

  • Breakaway Solutions Inc. (Nasdaq: BWAY)

    Breakaway became the latest e-business company to announce a stock split Monday, telling the Street it would split 2-for-1 on March 23 for all shareholders of record on March 7.

    Its shares closed up 15 5/8 to 147 ahead of the announcement.

    Since its initial public offering in October, Breakaway Solutions shares have caught fire, peaking at 156 in February.

    Four of the five analysts covering the stock maintain either a "buy" or "strong buy" recommendation.

  • Datatec Systems Inc. (Nasdaq: DATC)

    Datatec Systems might get roughed a bit Tuesday after it missed analysts' estimates in its third quarter, posting a loss of $1 million, or 3 cents a share, on sales of $21.4 million.

    First Call consensus expected it to lose 1 cent a share in the quarter.

    Its shares closed up 1 to 17 5/8 ahead of the earnings report.

    The $21.4 million in sales marks a 10 percent improvement compared to the year-ago quarter when it lost $1.6 million, or 5 cents a share, on sales of $19.4 million.

    "We are very encouraged by our ability to improve margins and increase revenue in the midst of traditionally our slowest quarter and the lockdowns associated with Y2K," said CEO Isaac Gaon in a prepared release. "Our backlog continues to grow suggesting even greater revenue growth going forward."

    Last quarter, Datatec posted a profit of 2 cents a share.

    Its shares moved up to a 52-week high of 19 in February after slumping to a low of 2 1/16 in November.

  • Lam Research Corp. (Nasdaq: LRCX)

    The Chip-equipment manufacturer should take off Tuesday after it announced a 3-for-1 stock split after the bell, its first split in more than six years.

    Its shares closed off 7/16 to 151 3/8 ahead of the announcement.

    The Fremont, Calif. company's only other stock split came in September 1993 when it split 3-for-2. The split will take affect on March 7 for shareholders of record on that date.

    Once the split is completed, Lam will have approximately 122 million shares of common stock outstanding.

    In its latest quarter, Lam shattered analysts' sales and earnings expectations, pocketing $43.1 million, or 98 cents a share, on sales of $288.6 million.

  • Teligent Inc. (Nasdaq: TGNT)

    Teligent figures to gain ground after it posted a smaller-than-expected loss in its fourth quarter Monday, losing $156.6 million, or $2.89 a share, on sales of $15.5 million.

    First Call consensus pegged the broadband communications services provider for a loss of $2.91 a share in the quarter.

    Its shares closed up 5 7/16 to 89 1/2 ahead of the earnings report.

    In the year-ago quarter, Teligent (Nasdaq: TGNT) lost $105.3 million, or $2 a share, on sales of only $476,000.

    For the year, Teligent lost $531.8 million, or $9.95 a share, on sales of $31.3 million, up from a loss of $281.5 million, or $5.35 a share, on sales of $960,000 in fiscal 1998.

    In the quarter, Teligent installed nearly 90,000 lines, more than double the 39,000 lines installed during the third quarter. The number of lines installed in the last three months of 1999 exceeded the total number of all lines installed during the company's brief history.

    Thirteen of the 15 analysts tracking the stock maintain either a "buy" or "strong buy" recommendation.

    First Call consensus expects it to lose $11.30 a share in fiscal 2000.

  • Terayon Communications Systems Inc. (Nasdaq: TERN)

    Terayon Communications figures to explode Tuesday after it said strong demand for its broadband networking systems will result in an upside surprise in its first quarter.

    The company said it will post sales of between $55 million to $57 million in the quarter, up from the $38.7 million it recorded in the fourth quarter.

    Its shares closed up 9 1/8 to 229 15/16 ahead of Monday's announcement.

    Last quarter, it posted a profit of $1.2 million, or 4 cents a share, on sales of $38.7 million.

    First Call consensus currently expects Terayon to earn a penny a share in its first quarter and 11 cents a share in the fiscal year.

    Its shares moved up to a 52-week high of 280 in February after announcing a 2-for-1 stock split.

    The stock fell to a low of 26 3/8 in June.

    Seven of the eight analysts covering the stock rate it either a "buy" or "strong buy."

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