Enron Corp. - University of California | Office of The President

It also had over 10 additional transaction requests, subject to just getting some
agreements in place.
• Enron was deploying a first phase of its entertainment on demand product for
Blockbuster's movie content. This agreement was one of the largest ever signed
and represented enormous long-term value. Well over a billion dollars in
revenues.
• Blockbuster was going fine. The major news was that all the major technology
components were in place and Enron was actively working to put that transaction
in place in four major markets.
• A great quarter for Enron. Enron was very excited about its performance and
remained comfortable with full year earnings expectations of about a $1.40. Good
quarter, good outlook for the year. The Company was well positioned in the
markets.
264. On 10/17/00, Skilling was interviewed on CNNfn and stated:
CHERNOFF: Jeff, Let's talk about the Broadband aspect, because as you say, the
market is certainly giving you a lot of credit for that. But at the same
time, over the past few weeks, there's been a debate on Wall Street as
to whether we might actually be entering a broadband glut. Is that a
fantasy?
SKILLING: No. I think that's a very real possibility, and in fact, we've designed
our business to take advantage of that.... And we see some of the
same characteristics in the broadband business, which is why we've
begun building the capability to transact real-time bandwidth, so
that when the market prices do decline - and I believe they'll decline
pretty significantly – we'll be in a position to make that lower-cost
capacity available to our customers.
265. On 10/17/00, Bank America issued a report on Enron. It rated Enron a "Strong Buy,"
with a $105 price target, and forecast 00 and 01 EPS of $1.43 and $1.65 and a 15% secular EPS
growth rate for Enron. It also stated:
• ENE reported 3Q00 EPS of $0.34, which was above ... our estimate .... EPS
grew 26% from 3Q99 EPS of $0.27.... [N]et income for the quarter totaled
$292 million, a 31% increase over $223 million earned in 3Q99.
• Once again, the impressive results were driven largely by extraordinary
growth from the company's wholesale energy segment. EBIT from the
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