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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.11+0.9%Nov 21 9:30 AM EST

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To: Stock Farmer who wrote (61771)10/9/2002 11:26:49 AM
From: Elroy  Read Replies (2) of 77400
 
True, current quarter had great margins. Quarter before the margins weren't so good and before that they were terrible.

Earth to John. Quarter before op margins were 21%, and before that 15.4%. Few companies call 15.4% operating margins "terrible".

CSCO has no competition, so minimal price pressure, but component prices continue to fall, so gross margins can stay high. Operating margins they can control through expense controls. Unless CSCO has another mega-decline in sequential revenues, keeping operating margins above 20% seems very reasonable.
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