Silicon Investor (SI) -- The First Internet Community

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) -- Ignore unavailable to you. Want to Upgrade?

To: The Philosopher who wrote (26838)	7/13/1999 12:59:00 PM
From: The Phoenix	Respond to of 77400

Yes, if the margin drops so does the PE and so does the CSCO stock price. And yes, of course this worries me. BUT, every quarter management talks about margin pressure and every quarter there is little - if any. Cisco continue to get into and re-invent the business model and moving SP's from bandwidth based pricing to service based pricing models will help to keep margins up. Furthermore, contrary to what some may think, Cisco does a good job of staying away from low margin products and recently has started a campaign of delivering software to these consumer electronics manufacturers. This moves this portion of the business to more a of Microsoft margin model. So, does margin pressure concern me - Yes! Do I think Cisco can manage this problem - Yes! OG

To: The Philosopher who wrote (26838)	7/13/1999 1:52:00 PM
From: Mighty Mizzou	Read Replies (2) \| Respond to of 77400

Or do you have some reason to believe that CSCO can maintain its margins for the next several years? It HAS to remain dominant in the large enterprise and put A LOT more focus in carrier equipment, especially in the core. It has no business getting into the nickel and dime SOHO market. Leave that to COMS and the like. But the top priority is network management software. CSCO reminds me of IBM, great hardware, lousy software. CSCO HAS to come up with a viable competitor to IP Navigator!!!