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

To: Tony Viola who wrote (30306)	12/15/1999 10:11:00 AM
From: Curtis E. Bemis	Read Replies (1) \| Respond to of 77400

08:44 ET Cisco Systems (CSCO) 97 15/16: --Update-- Brokerage firms starting to come to Cisco's defense -- Merrill Lynch says that "we do not believe there is any new news in the 10Q." Merrill says that declining gross margins were already factored in and that lower DSOs (days sales outstanding) reflect reduced lead times rather than lower revenue visibility. Off briefing.com

To: Tony Viola who wrote (30306)	12/15/1999 10:12:00 AM
From: Michael Gaudet	Respond to of 77400

Merrill's take on it: Cisco (CSCO, $97 15/16, B-1-1-9) Filed its 10Q, Concerns Raised, Reiterate Buy (Michael Ching 212-449-0187) ú Some investors have raised concerns about some issues in the filing but we beleve there is no new news in it. The two issues that have been raised are declining gross margins and lower visibility. ú We have modeled in declining gross margins which reflect product mix shift. Lower DSOs & higher inventory turns are occurring as CSCO has worked to reduce lead times. Lower DSO & higher inventory turn ratio is desirable from a working capital standpoint. ú Therefore we do not believe there is any new news in the 10Q. We reiterate our Buy rating.