<Raw materials (000's) $51,802 $89,226
Work in process 97,751 114,724
Finished goods 69,754 21,733
Demonstration systems 21,815 28,994
$241,122 $254,677
As a percentage of total revenues, Cisco's "finished goods" rose from
8.5% of total inventories to 28.9%. Assembled systems ready for sale
increased 221.0% quarter-over-quarter, a sign that even nigh
invulnerable Cisco may be seeing the same kind of weakness 3Com (Nasdaq:
COMS), Cabletron (NYSE: CS), Bay Networks (NYSE: BAY) and Ascend
Communications (Nasdaq: ASND) have all reported in the past few weeks.
This could also explain the weakness at Kent Electronics' (NYSE: KNT)
K*TEC contract manufacturing unit reported last night, as it does
business with Cisco.>>
Misleading in first saying percentage of total revenues and
then used it on total inventory. These numbers (69m$ for finished goods) considering the 2B$(2,000m$) per qtr revenue is nothing. Kent is just one of the many vendors.
companies tend to do stock splits when they have visible backlog
and orders; also, csco has more products that sell to retail
channels now and therefore needs a larger inventory for finished goods. This built-up of inventory reported as part of the news and also acknowledged by an official person is to satisfy these demand.
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