UBS Analyst Sees Steep Cisco Sales Drop In 3Q>CSCO
21 Mar 12:12
By Peter Loftus
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Cisco Systems Inc.'s (CSCO) sales for its fiscal third
quarter ending in late April could fall 20% below second-quarter levels,
according to UBS Warburg analyst Nikos Theodosopoulos.
Theodosopoulos hasn't formally changed his model for Cisco, and he's
maintaining his buy rating.
Theodosopoulos previously projected Cisco's revenue would fall 12% from $6.75
billion posted last quarter.
But after talking with Cisco suppliers at the Optical Fiber Conference in
California, he concluded that most of Cisco's product lines were running 10% to
30% behind expectations for the quarter.
He disclosed his new findings during UBS Warburg's Wednesday morning call
with sales staff and clients, a spokeswoman said.
Theodosopoulos said he wouldn't be surprised if Cisco pre-announced negative
results in early April.
Cisco said in early February it expected third-quarter sales to be flat with
the second quarter, or to fall 5%.
It hasn't changed that guidance, but Chief Executive John Chambers said last
week that customer orders hadn't picked up since January.
Cisco officials weren't immediately available.
Cisco's shares recently were down 6 cents, or 0.3%, to $19, on volume of 60
million, compared with average daily volume of 100.5 million.
-By Peter Loftus, Dow Jones Newswires; 201-938-5267;
peter.loftus@dowjones.com
(END) DOW JONES NEWS 03-21-01
12:12 PM |
