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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: patron_anejo_por_favor who wrote (81773)	3/17/2001 2:27:36 AM
From: XBrit	Read Replies (2) of 436258

I'd strongly suggest that people on this thread (hi Earlie) should read Herb Greenberg's comments on IBM today. Herb Greenberg ibm 3/16/01 2:51 PM ET Maybe this explains IBM, from our boys at Fechtor Detwiler: "In the last few days we’ve picked-up some information out of IBM. From our friends intimate with IBM Microelectronics, we’re hearing that “Cisco has cancelled ASIC orders for the foreseeable future”. Supposedly, IBM warned Cisco that any cancellations would drop them out of “cue”, pushing out any possible upside for up to six months. Our sources tell us that up until now, IBM has been running the Vermont fab at near capacity as internal demand for chips supporting the recently revamped RS6000 server remains relatively strong. "However, the word we’re hearing from contacts intimate with IBM’s contract manufacturing activities depict bleaker business conditions. In particular, we’re hearing current production of the RS6000 servers has maintained a strong pace, but future build schedules have been reduced by some 15%-20%. Our sources have also commented that “E Server and RAID business is off substantially”. Herb Greenberg ibm 3/16/01 3:09 PM ET Thanks to Justin for pointing out to me the latest from Merrill Lynch's Tom Kraemer on IBM, which he downgraded in December, "on our belief that systems integration contracts would not hold up in a weakening environment. That belief appears to have been confirmed as Computer Sciences negatively pre-announced this morning." Kraemer added: "We have spoken with the CIOs at a number of large financial services corporations and they indicated they have started to slow their purchases of mainframe MIPS. We believe this is materially important as many investors have looked at the mainframe product cycle for justification to stay with IBM." hg

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