Cisco Systems (CSCO) 20.61 +1.36: -- Update -- Chambers defends his 30-50% long-term growth projections for Cisco's markets,
but doesn't offer any compelling new evidence for the forecast. Stock has been fading throughout the call; now at 19.62. Still no guidance...
Cisco Systems (CSCO) 20.61 +1.36: -- Update -- CFO offers more detail on inventory writedown of $2.25 bln; biggest chunk of
inventory was in non-memory semis, such as ASICs and DSPs ($950 mln), then optical components ($450 mln), and memory products
such as SRAM and flash ($300 mln). Cisco says most inventories are customized for Cisco and the others have little market value and
therefore does not expect to achieve significant income from selling its excess. Finally, Cisco allays fears of future accounting gimmicks by
noting that the excess inventories are stored and tracked separately, and if they are used in the future, they will not benefit pro forma
earnings numbers.
Cisco Systems (CSCO) 20.61 +1.36: -- Update -- Still no guidance, but more color from Chambers: April qtr "ended up pretty much as
we outlined." Regarding geographies, Chambers said US service provider sales were down in excess of 40% sequentially, enterprise
-20%. On Europe, Chambers said that Cisco has seen a "dramatic change since the February timeframe." On Asia, Japan was down about
33% sequentially, with China and India being the lone bright spots. |
