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

To: gbh who wrote (27916)	8/25/1999 11:42:00 PM
From: JRH	Read Replies (1) \| Respond to of 77400

Cisco, San Jose, Calif., plans to announce the acquisition Thursday, along with a deal to buy Monterey Networks Inc., a Richardson, Texas, networking concern, for about $450 million in stock. Two optical networkers at once! This is a huge move for Cisco. I just hope that they didn't pay too much! Justin

To: gbh who wrote (27916)	8/26/1999 12:24:00 AM
From: Don Pueblo	Read Replies (1) \| Respond to of 77400

"Mr. Khosla, Mr. Chambers on line one." [picks up phone] "Yes, John, how are you?" "Good. Yes, certainly. "Of course, that would be fine. "6.9 billion in stock? "Uh...well, yes. That would be acceptable, yes. "Certainly, yes. "Yes, I look forward to it, and thank you, yes. "Goodbye." [hangs up phone] "AHAHA AHAHA HAHAHAHAHA AHAHAHA AHAHHAH AHAHAHAHAHAHAH AHAHAHA AHAH AHAHAHAHAHAHAHA AHHAHAHA AHAHA AHAHA AHAHA AHAHA AHAHAHAA AHAH AHAHAHAHAHA AHAHAH AHAHAHA HAHAHA AHAHAH A AHAHAA AHA AHAHAHAHAHAHA AHAHA AHAHAHAH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

To: gbh who wrote (27916)	8/26/1999 11:44:00 PM
From: Tony Viola	Respond to of 77400

gbh, I don't think that part of the article you posted about Cerent got enough emphasis on this thread today, and it is the part that, even though their sales have totaled something like 10 million to date, they are selling at a 100 million dollar annualized run rate right now. In two separate interviews with Chambers, on CNBC and Fox Business News, he did emphasize these points. He said that run rate exceeds that of any of the "hot IPO companies" this year, (read Juniper, Redback). Mr. Chambers said he initially blanched when he heard the deal price but began to see the logic in the amount. Though Cerent had less than $10 million in revenue in the six months ended June 30, it is increasing product shipments so quickly that it is now on an annualized run rate exceeding $100 million, he said. Cisco expects revenue to swell to about $300 million next year, making the purchase price about 23 times sales, a multiple in keeping with Cisco's financial structure, he said. Chambers also likened the two buyouts today as being similar to the one that brought Crescendo into the fold in '93. He said the market for Cerent and Monterey type product could be 4 billion in 2002, similar to what Crescend grew into. Mr. Chambers also compared Cerent with Crescendo Communications Inc., which had roughly $10 million in annual sales when Cisco acquired it for $92 million in 1993. Today, Crescendo's products are at the core of a Cisco unit with annual sales of $4.5 billion. Tony