STOCKS TO WATCH: Copper Mountain, IBM, Intel, i2 Technologies and Terayon

Copper Mountain figures to be in for a rough day of trading Wednesday after warning that its fourth-quarter and fiscal 2001 sales and earnings will fall dramatically short of analysts' estimates.

It did manage to beat estimates by a penny a share in its third quarter, earning $15.8 million, or 27 cents a share, on sales of $93.5 million.

However, it said its fourth-quarter sales will come in around $60 million and earnings will be between 4 cents to 6 cents a share. Analysts were expecting a profit of 28 cents a share.

It also said fiscal 2001 sales will fall between $300 million to $330 million and earnings will come in between 16 cents to 25 cents a share, woefully short of the $1.37 analysts had predicted.

Its shares closed off 3.75 to a 52-week low of 26.88 ahead of the earnings report.

IBM will be worth watching after it met the Street estimate in its third quarter, earning $2 billion, or $1.08 a share. However, the $21.8 billion in sales came in at the low end of most analysts' estimates.

First Call Corp. consensus pegged IBM for a profit of $1.08 a share in the quarter.

Ahead of the earnings report, IBM shares closed up 1.88 to 113.

The $21.8 billion in sales marked a modest 3 percent improvement from the year-ago quarter when it earned $1.8 billion, or 93 cents a share, on sales of $21.1 billion.

Most analysts had predicted Big Blue would record sales of between $21 billion to $23 billion in the quarter.

Intel beat reduced estimates in its third quarter, posting a profit of $2.9 billion, or 41 cents a share, on sales of $8.7 billion.

Analysts had lowered their consensus estimate to 38 cents a share in the quarter.

The company said total sales would grow by 4 percent to 8 percent sequentially in the fourth quarter, lower than expected for the traditionally strong holiday period.

Its shares closed up 0.44 cents to 36.13 ahead of the earnings report but moved up to 37.50 in after-hours trading.

Excluding acquisition-related costs, the company earned $2.9 billion, or 41 cents a share, up from a split-adjusted 28 cents a share a year ago.

i2 investors should be pleased after the company beat the Street in its third quarter, earning $28.8 million, or 12 cents a share, on sales of $319.5 million. It also set a 2-for-1 stock split.

The e-commerce software developer was expected to earn 10 cents a share in the quarter, according to a survey of analysts by First Call Corp.

Its shares closed off 5 to 179.06 ahead of the earnings report.

The $319.5 million in sales marks a 118 percent improvement from the year-ago quarter when it earned $10 million, or 6 cents a share, on sales of $146.3 million.

Licensing sales jumped 128 percent to $201.6 million compared to $88.6 in the year-ago quarter.

Terayon shares should move higher after soaring past analysts' estimates in its third quarter, raking in $8.5 million, or 12 cents a share, on sales of $125.3 million.

First Call Corp. consensus expected the maker of broadband access systems to earn 9 cents a share in the quarter.

Its shares closed up 1.88 to 41 ahead of the stellar earnings report.

The $125.3 million in sales represents a staggering 436 percent improvement from the year-ago quarter, when it lost $1.7 million, or 4 cents a share, on sales of $23.4 million.

"We are pleased to report today that Terayon has achieved another great quarter for both revenues and earnings," said CEO Zaki Rakib in a prepared release.

Last quarter, Terayon earned $4.7 million, or 7 cents a share, on sales of $92 million.