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

To: Curtis E. Bemis who wrote (30321)	12/15/1999 2:33:00 PM
From: Mephisto	Read Replies (1) \| Respond to of 77400

Short sellers may try to manipulate the market. As you know, if you read SEC reports regularly, all companies always say competition may impact future earnings etc., etc. Mephisto

To: Curtis E. Bemis who wrote (30321)	12/15/1999 2:39:00 PM
From: Mephisto	Respond to of 77400

Cisco: Strong Sales Growth to Continue NEW YORK (Reuters) - Despite conservative warnings in its government filing Tuesday, Cisco Systems Inc. (NasdaqNM:CSCO - news) expressed confidence on Wednesday that the company's strong growth would continue and that it was comfortable with analysts' estimates for its current fiscal year. Shares of the top Internet equipment maker fell more than 5 percent early in the Nasdaq trading session on reports that it said in its quarterly 10-Q filing with the U.S. Securities & Exchange Commission that net sales could grow at a slower pace in the future. But shares retraced part of their losses later in the morning as the company said that the statement in the 10-Q SEC filing reiterated a long-standing view. At midday, shares were down about 3.5 percent, or 3-7/16, to 94-1/2. ``We've provided the same cautious guidance for years and it's really long-term guidance,' Doug Wills, the company's spokesman told Reuters in a telephone interview. ``Guidance for the quarter and the year remains the same. We're very comfortable with analysts estimates for the quarter and the year.' The Wall Street consensus estimate for the company's fiscal second quarter ending in January is 23 cents a share and $1.00 a share for the year ending in May. Both estimates exclude goodwill and amortization costs tied to acquisitions. ``The company has made these conservative statements in its 10-Q and 10-K's in the past,' said Matt Barzowskas, an analyst with FAC/Equities. ``If news items like this give weakness to the stock, I would view it as a buying opportunity.' He forecast second-quarter 2000 revenues of $3.90 billion for the company, a 37 percent increase from the year-ago period. ``A growth rate of 35 percent is sustainable for the long term,' he added. In the first fiscal quarter ending in October, Cisco's revenues grew 50 percent from the year-earlier period. The company has said in the past that its networking equipment for corporate office customers is growing at 30 to 50 percent annually and 50 to 70 percent for Internet service providers and other telecommunications customers. ``We consider these risk factors as relatively boiler plate and largely well understood,' said Credit Suisse First Boston analyst Paul Weinstein. In a research note to investors entitled ``Cisco stock overreacts to 10Q -- Again!' Weinstein wrote: ``We believe there is no new fundamental information in this report.' He added that: ``We would use any weakness as a chance to build positions in this core name.' In its quarterly 10-Q filing with the SEC, the company said, ``We expect that in the future our net sales may grow at a slower rate than experienced in previous periods, and that on a quarter-to-quarter basis our growth in net sales may be significantly lower than our historical quarterly growth rate.' Cisco also said, in the filing, that gross margins could decline over time because the market for its lower-margin access products is growing at a faster rate than the market for its higher-margin router and high-performance Internet switching products. The company made virtually identical statements in previous filings including its annual 10-K filing earlier this year.