Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Key takeaways: not only did Cisco miss revenue and earnings estimates this quarter, but it guided down revenue and gross margin estimates significantly for the next two quarters, with weakness largely in the service provider market but extending to the enterprise segment as well. Furthermore, inventories rose sharply and company now doesn't see inventory issue being resolved for 2-3 quarters; this will be a continuing drag on comm IC companies. Silver lining is that Europe and Asia remained relatively healthy, and US seen improving in the second half of the year. Weakness over the next two quarters is worse than expected but not shocking; the key will be two Cisco assumptions -- a US recovery in the second half, and no spread of US weakness to Europe/Asia; both reasonable assumptions, but hardly certainties. Q&A continues, but not hearing any additional guidance of note. Stock holding firm in 33-34 range, off about 2 from the close.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Brokerage firm estimates will be coming down sharply; projections for revenues for the next two quarters had been at $15 bln or better; Cisco's guidance suggests that the number will be closer to $13.5 bln. Significantly lower gross margins indicate that EPS estimates will also be coming down significantly.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Also sees gross margins below prior estimates at about 60% from 61.8% in Jan qtr and 63.5% in Oct qtr. Q&A now getting underway.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Company sees Q3 revenues flat to down 5% and Q4 flat with Q3 -- both of these figures are well below market estimates.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Will probably grow in the 40% range in FY01; also believe that FY02 can be 30-50%. The 40% rate suggests a marked slowdown in the next two quarters given the 60% growth to date.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Guidance: more conservative for Q3 and Q4, including a much wider range of revenue estimates. Chambers says that we are in "at least" a two quarter slowdown; he is cautiously optimistic for second half of year assuming Fed continues to ease. Still awaiting specific numbers.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Still haven't heard guidance for next qtr and year; stock holding in 33-34 range and related stocks also holding steady after initially falling on the Cisco report (changes vs close): AMCC -1 3/8, BRCM -4 1/4, PMCS -2, VTSS -1 1/2, PLXS -1 1/2, FLEX -1, JNPR -2 5/8, CIEN -1. Enterprise networking competitors holding up best; EXTR and FDRY off fractionally after hours.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- On the enterprise front, Cisco cites the manufacturing sector as the key source of weakness. A bright spot: European sales held up very well and Japanese sales are strengthening at better than 100% year/year.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Some worrisome talk on inventories. Most of the Q2 build was in raw materials and work in process. With raw materials, Cisco says that it entered long term commitments to meet demand that has not materialized and that it is working with suppliers to rebalance inventories but does not see inventories "recovering" for 2-3 quarters. This will be bad news for comm IC cos such as: PMCS, VTSS, AMCC, and BRCM.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Chambers says quarter was mixed: blames "dramatic" slowing of capital spending in US service provider marketplace, but also notes that there were "early signs of some softness with a few US enterprise customers." Says sales softness began in the 2nd week of December and continued through January.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Call resumes; Chambers blames TDM gear for the technical problems, sees it as a sales opportunity (techie joke).
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- For those of you waiting for details of the conference call, it still hasn't resumed after getting cut off within seconds of starting. There appear to be technical problems with the call. We will report as soon as it resumes.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Cisco's contract manufacturers also seeing some selling pressure after hours though volume pretty light; stocks to watch: JBL, PLXS, SLR, SANM, FLEX.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- The Cisco call started but was abruptly halted due to technical difficulties before any significant information was relayed. CSCO trading down 2 points after hours on earnings/revenue miss and bulge in inventories. Inventory concern is hitting shares of comm IC suppliers to CSCO (changes vs close): AMCC -2 3/4, BRCM -3 1/2, PMCS -2 7/8, VTSS -1 3/4. Also seeing weakness in optical cos: JNPR -2 3/8, CIEN -1 3/16, RBAK -1 3/16.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- DSOs (days sales outstanding) increased to 47 from 40 in the prior quarter; will have to wait for the conference call to see if there were any specific problems with receivables.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Inventories rose again to $2.533 bln from $1.956 bln in the prior quarter, suggesting ongoing inventory issues (there is some confusion on this because Dow Jones reported inventories as $1.162 bln, which was the deferred tax assets line).
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Gross margins fell to 61.8%, significantly below estimates of 63.0%.
Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Reports Q2 earnings of $0.18 a share, $0.01 worse than the First Call consensus of $0.19, vs year-ago earnings of $0.12; revenues rose 54.9% to $6.75 bln, but were well shy of the $7.2 bln consensus (year-ago was $4.36 bln). There was no guidance in the press release aside from CEO Chambers stating that "we remain cautious about the implications of a brief pause in the current 10-year expansion of the U.S. economy" and then expressing confidence in the long-term. Specific guidance will come in the call which begins at 4:45 pm. Stock trading down about a point after hours |
