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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.22+0.1%Nov 24 3:59 PM EST
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To: HammerHead who wrote (11320)1/5/1998 11:51:00 AM
From: Zoltan!  Read Replies (4) of 77400
 
>>It may or may not mean anything to CSCO. However, Bloomberg News just
reported heavy insider selling in Sybase two weeks ago. On Friday Sybase issued a profit warning. You make your own judgement. (sic)

The judgment has been rendered:

NEW YORK (Dow Jones Newswires -- January 5, 1998 )--A definite industry pickup in the second half of 1997 has analysts optimistic that network equipment companies will not deliver any earnings shortfalls for the December period.

After two industry leaders met only drastically scaled back earnings
expectations for their November quarters, Wall Street worried that the slow
international demand and domestic spending that plagued networkers in the
first half of 1997 might be contining.

But, analysts believe a strengthening that began in the third quarter did
indeed run through the end of 1997.

Driving demand for networkers is the explosive growth of the Internet and
network-intensive enterprise applications, said Lazard Freres & Co. analyst
Michael Duran.

"This is a business with huge, huge growth ahead of it," said Hambrecht &
Quist Inc. analyst Farrokh Billimoria. "The demand is there and sustainable.

"Deutsche Morgan Grenfell's Lindsay believes industry bellwether Cisco
Systems Inc. (CSCO) will earn 42 cents a share in its second quarter ending
in January, up from the profit of 34 cents a share a year ago.

Cowen & Co. analyst Chris Stix said business is particularly robust for
Cisco since the company "has a strong new product suite." These products
include Cisco's Catalyst 5500 modular local-area network switch, which
began to ship in early 1997; and its AS5300 access concentrator and its
12000 gigabit switch router, which shipped more recently.

Hambrecht & Quist's Billimoria noted that Cisco is one of the stronger
networking players because it is in most parts of the business and is not
overly dependent on any one segment.

.....This robust Ethernet cycle should benefit Cisco at the higher end of the
market and 3Com and Bay Networks at the lower end.

.....In addition, lower prices and stiff competition have over the last 18 months
dragged operating margins down to the midteens from the 20%-to-30%
range for most networking companies other than Cisco, NationsBanc
Montgomery Securities analyst Tobia said.

excerpt from "Steady Earns Seen For Networking Cos. As Pickup Continues"
interactive.wsj.com!DI01/04++1218!&time=01/05+11:05

By Joelle Tessler

Regards
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