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

To: Curtis E. Bemis who wrote (31698)	2/4/2000 9:30:00 AM
From: Jeffrey D	Read Replies (2) \| Respond to of 77399

Cisco Breaks Down Its Revenue by Product Line in Response to U.S. Request By Scott Lanman Cisco Breaks Down Sales of Products in Response to U.S. Request San Jose, California, Feb. 3 (Bloomberg) -- Cisco Systems Inc., the world's largest maker of Internet equipment, revealed a breakdown of revenue by product line, responding to a request from U.S. securities regulators. In its first quarter ended Oct. 30, sales of data-traffic routers rose 38 percent to $1.61 billion, switches climbed 39 percent to $1.57 billion and Internet-access devices more than doubled to $465 million. Other products and services accounted for $437 million, up 74 percent from a year earlier. Sales adjustments reduced revenue by $205 million. The disclosure came in amended quarterly and annual filings with the U.S. Securities and Exchange Commission today. Market research firms and analysts have for years estimated Cisco's revenue from individual product lines by surveying the company and distributors. Several analysts said they couldn't recall Cisco ever publicly giving such a revenue breakdown. ``It's helpful that they break this out for us,' said Credit Suisse First Boston analyst Paul Weinstein, who rates Cisco a ``strong buy.' Cisco spokesman Steve Langdon said the SEC asked Cisco ``to break down the information in a different way.' He said he didn't know when the request was made. Rivals including 3Com Corp., Nortel Networks Corp. and Lucent Technologies Inc. already break down sales in a similar fashion. That helps analysts and investors better understand the companies and make forecasts. Weinstein said Cisco executives told analysts at a meeting in July that Cisco planned to list sales by product line. The figures were close to his own estimates, culled from market-research firms and talks with Cisco employees. Breakout In the fiscal year ended in August, router sales rose 35 percent to $5.2 billion; switch sales rose 43 percent to $5.16 billion; and access-device revenue increased 79 percent to $1.13 billion. Revenue from other products and services climbed 61 percent, while sales adjustments widened to $522 million from $351 million. Routers generally differ from switches in that they use software to direct data to its intended destination, while switches simply transmit the data and are usually less expensive. The distinction has blurred recently with the introduction of equipment that blends functions of both. In the filings, Cisco also revealed ``standard margins' for its four geographic regions, showing that Japan was most profitable and the Asia-Pacific area, not including Japan, the least profitable in the first quarter by this measure. Shares of San Jose, California-based Cisco rose 3 15/16 to 117 13/16. Cisco filed the documents after the 4 p.m. close of the Nasdaq Stock Market. Cisco is scheduled to report its fiscal second-quarter results Tuesday after the Nasdaq market closes.