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

To: Gerald Walls who wrote (34866)	5/8/2000 4:54:00 PM
From: William Hunt	Read Replies (1) \| Respond to of 77400

Gerald ---Take a look at the OAK fund ---with that kind of money invested I think he has a better feel for CSCO than Barrons : Revenue Rising Revenue is forecast to rise 47 percent to $4.67 billion from $3.17 billion, according to First Call. On Feb. 8, when Cisco reported second-quarter results, Chief Executive John Chambers said the company was ``cautiously optimistic'' for the third quarter. He said Cisco will increase expenses ``slightly faster than sales for three to four quarters.'' Cisco's revenue has surged on sales of routers, switches and software to providers of Internet and phone services and smaller offices, as revenue from large corporate customers slows. ``All indications are quite positive,'' said Doug MacKay, a portfolio manager at Oak Associates in Akron, Ohio, one of Cisco's largest shareholders with 103 million shares. `Spooked' He said though the Barron's article has ``spooked people, we're not getting spooked by it.'' Geiling said Cisco could report revenue of almost $5 billion and exceed the average First Call profit estimate by 1 cent or 2 cents a share. If Cisco's revenue tops $4.85 billion, it would be the company's ninth straight quarter of rising sales growth. Cisco beat second-quarter sales estimates by $320 million. Analyst Truc Do of Wit SoundView, who rates Cisco a ``strong buy,'' said he expects Cisco's sales to providers of phone and Internet services, which make up about a third of revenue, to rise more than 80 percent from a year earlier. Such companies are seeking more capacity for the exploding Internet flow of video, audio and online transactions. Helping drive revenue growth is fiber-optic equipment Cisco got when it bought Cerent Corp. in November for $7.15 billion. Geiling said sales of Cerent's product, which links older phone networks with speedier optical lines, will reach $250 million to $300 million in the quarter. Cerent sold $9.9 million of its gear in the first six months of last year. ``That is an ultra-successful acquisition,'' Geiling said. Lower profit margins on Cerent's product and others sold to telecommunications companies may cause Cisco's overall gross margin to decline, Geiling said. The company has repeatedly warned of such a drop. Cisco is also benefiting from sales to corporate customers, especially smaller ones, which are spending their computer budgets more freely now that they no longer have to worry about the Year 2000 changeover, Geiling said. BEST WISHES BILL