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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Zoltan! who wrote (27663)	8/16/1999 10:01:00 AM
From: Curtis E. Bemis	Respond to of 77400

Cisco buys Calista Inc. for 55M$--Stock exchange Off Business Wire- 08/16 03:17 Cisco Systems to Acquire Calista Inc.; Technology Allows Different <CSCO.O> Cisco Systems to Acquire Calista Inc.; Technology Allows Different Business Phone Systems to Work With Internet Phone Systems SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 16, 1999--Cisco Systems, Inc. today announced a definitive agreement to acquire privately-held Calista Inc. in Bucks, England and San Jose, Calif. for $55 million in stock. Calista is a leading developer of Internet technology that allows different business phones to work together for the first time over an open Internet-based infrastructure. This acquisition is significant because it offers investment protection for business customers while allowing enterprises to seamlessly transition from circuit-based PBX phone systems to Internet-based PBXs. This acquisition also supports Cisco's strategy to enable new IP-based data, voice and video services, such as unified messaging, over an open, Internet-based infrastructure. Under the terms of the agreement, Cisco common stock will be exchanged for all outstanding shares and options of Calista Inc. The acquisition will be accounted for as a purchase. The transaction is expected to close in the first quarter of Cisco's fiscal year 2000 and will result in a one-time charge of approximately $.01 per share on an after-tax basis for purchased in-process research and development. Cisco is acquiring Calista Inc. to equip large businesses with Internet technology that allows legacy phone systems from different vendors to work together with Internet-based PBXs for the first time. This technology works at the network layer by emulating the closed PBX architecture of different digital phone manufacturers for large businesses. Using Internet Protocol (IP) as the 'lingua franca' between different legacy phone systems, this technology allows Cisco to mix and match Internet-based phones with legacy digital phones inside large companies. This acquisition builds upon Cisco's Internet-based voice architecture for large businesses. It delivers more choice, lower communication costs and investment protection for Cisco business customers. For example, the new Internet technology delivers the benefits of integrated data and voice networks without compelling customers to immediately throw away their legacy phone equipment. Calista Inc. was founded in 1995. Calista President & CEO Mark Richer will continue to lead his team, with sales and support in San Jose and research and development in United Kingdom. Richer will report to Prem Jain, vice president and general manager in the enterprise line of business. About Cisco Systems Cisco Systems (Nasdaq:CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at cisco.com. Note to Editors: Cisco, Cisco IOS, Cisco Systems, the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.

To: Zoltan! who wrote (27663)	8/16/1999 10:09:00 AM
From: Vendit™	Read Replies (1) \| Respond to of 77400

This from an email newsletter this morning; Cisco Systems reported EPS of 21 cents compared to 16 cents a year ago, up 31% year-over-year. Revenues rose to $3.55 billion, up 48% during the same period and up 12% sequentially, which came slightly above expectation. Cisco experienced strong order growth geographically. Asia (excluding Japan) showed an increase of 60% year-over-year, Europe and Middle East grew by 55% and up 45% in US. Gross margin came in at 64.7% compared to 65.7% during the last quarter. Decline in gross margin was due to product mix shift and aggressive pricing, some of which was offset by lower costs. Book-to-bill ratio was above 1.0, which remained above that level for eight quarters in a row. Cisco ended the quarter on a strong financial condition with cash and marketable securities equaling $10.1 billion, up $1.6 billion sequentially. Cisco experienced strong growth from its service provider segment, which grew by almost 80%, orders from small-to-medium sized business grew by 34% and 33% from its enterprise customers. Cisco's overall revenues grew almost twice as much as the industry average and maintained its leadership position across several product lines. Following the earnings release, Merrill Lynch raised earnings estimate for fiscal 2000 from $0.91 to $0.97 and established preliminary fiscal 2001 earnings estimate of $1.22. Merrill reiterated buy rating on the stock with a 12-month price target of $70 based on 65 times their calendar 2000 EPS estimate of $1.07. Technically, shares had been trading in a range of $60-$63 over the past several weeks since reaching a high of $67 in July. The consolidation has helped the stock relieve some of the overbought situation on a near-and-intermediate-term basis. Shares are testing the upper end of the current trading range and a break through this level could carry the stock back up towards its previous high. If overall market continues to rebound after Friday's sold gain, look for an upside breakout. trading-ideas.com Keep an eye on shares of AOL, which appear to be headed towards $100. Shares acted very well the past few days and participated in the rally. While recent rebound helped the stock relieve some of the oversold condition, it would take few more up days before reaching overbought on ashort-term basis. Thus, odds favor the upside over the next few days. AOL has been acting well since management made positive comments in a recent conference call, which brought some stability to the group. This not only helped the stock, but also helped lift the entire group - something to keep an eye on. Keep an eye on shares of CMGI, which are on the verge of breaking through its downtrend. Shares formed a nice base around $72 from which the stock mounted this rebound. Current pattern suggests that the stock could make a decisive break through this level on way to its next area of solid resistance at $88-$90. Technical indicators are on the neutral side of overbought, which favor higher prices ahead. If overall market remains firm in coming sessions, look for CMGI to move up as well. Keep an eye on shares of eBay, which had another good day on Friday, rising 5 3/8 to $98. Shares are now up from $72 to almost $100 over the past couple of weeks and relieved some of the oversold situation in the process. eBay will have to deal with some overhead resistance shortly. The first one is at its 25-day moving average around $100, which the stock could test as early as Monday. If the overall market remains firm on Monday, shares could very well trade above its 25-day moving average on an intra-day basis, but closing above that level might be different proposition.