Jules --
From my notes:
Revenues were up 12% sequentially and 48% y/y, and margins were down from 65.1% last Q to 64.7% this quarter.
Including charges earnings were up 35% for the year and 20% y/y for the quarter.
Growth for enterprise was 33%, for service prividers 80% and small to med bus, 34%.
Y2K will have the least affect on businesses building out Internet. A number of enterprises will reduce purchases for 1 to 4 months.
They continue to call competitors "old world" and predict all their acquisitions will fail and theirs will succeed. [Why no statistics on revenues from acquisitions? Considering their expertise in tracking market share and other numbers it seems odd.]
Re: Lucent buying INS, they say they had the opportunity to buy them and turned it down.
They talked a lot about BT business, especially GX 12000 (?) and MGX 8800 "for next phase of BT's MSP network. [Not sure what this is.]
They're also working with Qwest, Cincinnati Bell, Rythmns, and Telephonica.
Cable and DSL were strong, especially cable. In DSL struggling for second-source contracts.
Towards the close, Chambers said market share included alliances and partnerships.
Asked if 80% growth in service providers would continue, Chambers said no, and that 30 to 60% would be more likely.
Someone asked about Juniper and Nexabit and the high-end router competition and was told there was great demand for OC-48 and yet no pressure to sell OC-192. They conceded Juniper would get second-source contracts. Cisco's 12000 has 20% sequential growth.
Broadband --- 1/4 billion in revenues for year --- representing about 400-500% growth y/y. Growth will be double in 2000, depending on acceptance of cable and DSL.
Asked about guidance overall, they said low 30% y/y was range. They also said Q2 is an unknown. Quarters 1,3, and 4 would be normal.
Optical Internet products grew 20%. "Strong growth in cable and DSL."
Catalyst 8540? Is for niche market --- ATM for campus is going away.
One analyst asked about Telia and Sprint. "Re: Telia, there was a gap in expectations on product." As for Sprint ION, "most comprehensive and challenging we've ever done. Sprint is its own systems integrator. We're hiring aggressively and partnering to do this [project]."
Re: ATT, they said their relationship in INT network was good. "Will be good growth in 2000. . . . voice over cable not working as well as expected. Implementation behind where we want it."
Working hard in broadband LMDS. Mentioned MOT/CSCO joint investment in Bosch.
>>>>
Overall, Cisco's results show strong demand in network infrastructure solutions and their struggles at Telia and Sprint indicate their carrier expertise isn't up to the challenge. Recent problems at MCI/WCOM should not come as a great surprise.
Fiscal year pro forma revenues grew 39% and pro forma earnings 29%.
Changing subjects abruptly, check out WinStar's earnings release for a glimpse of growth in wireless broadband:
newsalert.com
Pat
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