Raiders,
Does the post below really affect csco directly it seems to be more coms specific (i.e. modems)? Is csco really a modem play? I agree that qcom may get people worried about Asia again but with the warning that anad (anadigics) gave a week or so earlier wasn't this expected from qcom?
I seem to recall that asia was not a huge portion of csco's revenue, or was that specifically Japan?
Thanks,
Perry
<To: hitesh puri (13752 )
From: Mang Cheng
Thursday, Feb 5 1998 5:48PM EST
Reply # of 13764
"3Com Off 6%; Analyst Says May Not Hit Modem Inventory Goal "
Dow Jones Newswires -- February 5, 1998
NEW YORK (Dow Jones)--A 6.1% selloff in the shares of 3Com Corp.
(COMS) could be the result of comments from Cowen & Co. that suggest
the company may be struggling to reduce its inventory of modems.
Cowen analyst Christopher Stix wasn't immediately available, but in a
research note Thursday morning, he said 3Com may not hit its targeted
reductions in its modem inventory.
Stix also said that while 3Com has an "exceptionally strong" new product
cycle coming, it may face difficulty exceeding industry growth rates, and
expanding its margins may be hindered by a challenging pricing
environment.
"We believe that the company will achieve recognition in the market for its
inventory reductions, assuming they are complete at the end of the (fiscal)
third quarter, even if the company does not achieve consensus earnings per
share of 14 cents," Stix said in his note.
Stix said 3Com's expense controls are on track.
Officials at the Santa Clara, Calif., concern weren't immediately available.
Mang> |
