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

• For the first quarter of 01, Enron reported outstanding results, including an 18%
increase in EPS to $.47 compared to $.40 a year ago. A 281% increase in revenues
to $50 billion versus $13 billion a year ago and a 20% increase in net income to
$406 million versus $338 million a year ago. Enron's 1stQ results demonstrated
the strength of all of its businesses.
• Wholesale services led Enron's strong performance in the first quarter. Total
income for the quarter increased 76% to $755 million from $429 million a year
ago marking wholesale services' 21st consecutive period of year-over-year
quarterly earnings growth. These earnings were primarily attributable to Enron's
leading role worldwide in its commodity sales and service business where Enron
markets and delivers energy and other commodities. As for the wholesale business
– just an outstanding quarter, another outstanding quarter.
• Enron had two revenue sources in EBS, bandwidth intermediation and content
services. In its bandwidth intermediation business, it was making excellent
progress in creating a commodity market for bandwidth. During the quarter, it
completed 580 transactions or more than double its 4thQ 00 activity and more than
all of the year 00 activity. It also more than doubled its customer base during the
quarter with the addition of 70 new customers for a total of 120 customers and
counterparties.
• Overall, on the intermediation side, very strong development of the marketplace
and the commoditization of bandwidth, and Enron was feeling very good about the
development of this business.
• As to bandwidth and content services, Enron was focused exclusively on high
potential, near-term opportunities with large content providers to provide VOD.
Enron had already successfully demonstrated the technical capability of its
network. During the 1stQ, Enron terminated its relationship with Blockbuster due
to their inability to secure content from major movie studios. Enron expected to
secure premium content directly from content owners.
• First quarter results were great. Enron had a great quarter, the Company was
doing very well. Each of Enron's major businesses continued to generate high
levels of earnings and provided opportunities to extend its business model to new
markets.
• Enron was very optimistic about each of its businesses and was confident that its
record of growth was sustainable for many years to come. Enron felt very good
about the prospects for the future.
• Enron was increasing its earnings forecasts for the year 01 to a range of $1.75 to
$1.80 per share with 15+% growth in EPS in 02.
318. On 4/17/01, Skilling appeared on CNNfn, was interviewed and stated:
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