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

To: Road Walker who wrote (39113)	8/9/2000 6:02:22 AM
From: JDN	Read Replies (2) \| Respond to of 77398

Dear John: As you know I listened to the CC, thanks to you, and I presume everyone has read the Reutgers release of it here at SI. I just wish these people could ONCE get it right. I am going to print out below one paragraph (important one I think) of the Reutgers announcement and comment on its inaccuracy. I know you listened to the CC so if you disagree with me please so state: Chief Financial Officer Larry Carter said on the call that investors and analysts should expect its gross margin -- or the percentage of sales left after subtracting product costs -- to narrow over time. That's because of a shift in product mix, increased sales of services and fewer component cost savings, Carter said. This is INCORRECT. INITIALLY the analyst asking that question did get that impression but John Chambers stepped in and said that Larry was referring to NEW FIELDS not their regular products. He said that when you (the analysts) are factoring NEW SALES you should shave the GP margin but for the normal reoccurring business they will be the same or improve. Later in the CC this came up again and John Chambers AGAIN tried to straighten out the meaning of what was said. So I am quite sure of what I say. JDN