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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (15774)	12/15/1999 9:24:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

CNET News: Cisco expects sales slowdownÿ yahoo.cnet.com ÿÿÿ Cisco expects sales slowdown ÿÿÿ By Sandeep Junnarkar ÿÿÿ Staff Writer, CNET News.com ÿÿÿ December 15, 1999, 5:55 a.m. PTÿ ÿÿÿ Networking giant Cisco Systems warned that net sales could grow at a lower pace in the future, and that it expected its gross ÿÿÿ margins to continue declining. ÿÿÿ In its quarterly 10-Q filing with the Securities and Exchange Commission, Cisco said that its gross margins decreased to 64.8 percent in the first ÿÿÿ quarter of 2000 from 65.5 percent in the year-ago quarter.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The decline was primarily due to the company's continued shift toward lower-margin products and persistent pricing ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ pressure from competitors, Cisco said.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ "The prices of component parts have fluctuated in the recent past, and we expect that this trend may continue," the ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ company said in its 10-Q filing. "We expect that gross margins will continue to decrease in the future."ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The company cited faster growth in the market for lower-margin remote access and switching products than the market ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ for its higher-margin router and high-performance switching products.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ While net sales grew to $3.9 billion in the first quarter of 2000 from $2.6 billion in the year-ago quarter, the company ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ expects its growth rate to slow.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ "We expect that in the future, our net sales may grow at a slower rate than experienced in previous periods, and that on ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ a quarter-to-quarter basis our growth in net sales may be significantly lower than our historical quarterly growth rate," ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Cisco said in its filing.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ

To: Tunica Albuginea who wrote (15774)	12/15/1999 9:35:00 AM
From: Tunica Albuginea	Respond to of 18016

CNET: CRISCO sales slowing down. yahoo.cnet.com Cisco warns of sales slowdown ÿÿÿ By Sandeep Junnarkar ÿÿÿ Staff Writer, CNET News.com ÿÿÿ December 15, 1999, 5:55 a.m. PTÿ ÿÿÿ Networking giant Cisco Systems warned that net sales could grow at a lower pace in the future, and that it expected its gross ÿÿÿ margins to continue declining. ÿÿÿ In its quarterly 10-Q filing with the Securities and Exchange Commission,ÿ Cisco said that its gross margins decreased to 64.8 percent in the first ÿÿÿ quarter of 2000 from 65.5 percent in the year-ago quarter.ÿ ÿÿÿ The decline was primarily due to the company's continued shift towardÿ lower-margin products and persistent pricing ÿÿÿÿÿ pressure from competitors, Cisco said.ÿ ÿ In quarterly filings, companies tend to cite a laundry list of factorsÿ that might have a negative impact on their prospects in ÿ the future. The potentially detrimental factors cited tend to be somewhat unpredictable, such as the rise of new competitors, changing technologies, and economic and market fluctuations.ÿ ÿÿÿ "The prices of component parts have fluctuated in the recent past,ÿ and we expect that this trend may continue," the ÿÿÿÿÿÿ company said in its 10-Q filing. "We expect that gross marginsÿ will continue to decrease in the future."ÿ ÿÿÿÿ The company cited faster growth in the market for lower-margin remote access and switching products than the market ÿÿÿÿÿÿ for its higher-margin router and high-performance switching products.ÿ ÿÿÿ While net sales grew to $3.9 billion in the first quarter of 2000 from $2.6 billion in the year-ago quarter, the company ÿÿÿÿÿ expects its growth rate to slow.ÿ ÿÿÿÿÿÿÿÿÿÿÿ "We expect that in the future, our net sales may growÿ at a slower rate than experienced in previous periods, and that on ÿÿÿÿÿÿÿ a quarter-to-quarter basis our growth in net salesÿ may be significantly lower than our historical quarterly growth rate," ÿÿÿ Cisco said in its filing.ÿ