Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.11

+0.9%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stock Farmer who wrote (61755)	10/9/2002 12:41:50 AM
From: Elroy	Read Replies (2) of 77400

Well, now that the subject of discussion has been explained.... Take a look in the 10-K. The signs are already starting to show. Check the revenue for FY 2000. Check the margins (gross and net). Check the revenue for FY 2002. Incredible... they are the same within 0.1%. But the margins are different. You seem to be implying margins are declining. You didn't say that (for some reason), but I think that's your point. Actually the margins for the most recent quarter (July) are amongst the highest reported in the company's history. Without any revenue growth, Cisco should be able to continue to improve margins (omponent prices are declining while end product prices are stable since Cisco has no serious competition), and even if margins just stabilize at July levels profits (more than 20% of sales) are tremendous. You know Cisco generates $300 to $400 million per month in operating cash flow. That sound like a great business. And looking forward, most employee options have gotta be underwater, so as long as Cisco keeps its current share repurchase program in place (pretty easy with an $8.50 share price, $20 billion cash and strong operating cash flow) you're likely to see the reverse of dilution (Is there one word for the opposite of dilution? share concentration?) in the upcoming year. Personally, I'd like to see Cisco announce a $5 billion share repurchase program. As long as the shares are under $10 that's gotta a better use of cash than acquisition and other options.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next