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To: The Phoenix who wrote (33802)9/10/1999 3:33:00 PM
From: Stockman_77079  Respond to of 45548
 
Gary, as long as Networking Business is still making money, it is not in the red, and the professional service business will definitely be a plus. They currently have a 47% gross margin on their networking product. If they reorganize to cut down on operating expenses, it could still be very profitable. It's the admin that is killing the margin down to 6% net profit in networking systems, vs 20% net profit in CSCO.


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