Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: optical-editor who wrote (39899)	9/15/2000 7:33:19 AM
From: Mehitabel	Read Replies (1) \| Respond to of 77400

Nice find, op-ed. The part I liked best was the hilarity over the joke about the Monterey product testing well because everyone was drunk. Can't see how they would be joking like that if there were problems anywhere (or if the FUD being sprayed all over about CSCO were one-tenth true) Thanks, and regards

To: optical-editor who wrote (39899)	9/15/2000 9:21:31 AM
From: telecomguy	Read Replies (4) \| Respond to of 77400

Classic Cisco spin. Read this interview. What a JOKE! Either this guy Russo thinks we are all country bumpkins or he is truely incompetent. For CSCO shareholders, you better hope it's the former not the latter. In this interview with LightReading, he claims that owning component mfg is NOT going to ensure a supply when there is a major shortage of the supply. Is this guy smoking dope or what??? He also claims NT is going to spin off the component. What he doesn't say is that NT-Corning component merger broke down BECAUSE NT was going to have CONTROL and INSISTED on GUARANTEED component supply from the merged entity. THERE IS ONLY ONE REASON WHY RUSSO IS BEING SO DISINGENIOUS ABOUT THIS COMPONENT ISSUE (I.E. WHY CSCO DOES NOT HAVE NOR PLAN TO ACQUIRE OPTICS COMPONENT MFG BUSINESS).............READY FOR THE PAINFUL ANSWER? CSCO DOES NOT HAVE ANY OPTICS BUSINESS TO REQUIRE OPTICS COMPONENT! WOW, WHAT A NOVEL CONCEPT. Rather than being honest by coming out and saying we are not at the stage where we need to control the optics component becuase we do not have enough contracts, he spins this laughable, amateurish story about not needing to control supply. NOT IMPRESSED with this Russo character. Here is the interview excerpt........ Light Reading: Cisco has steered clear of buying component manufacturers. Are you going to continue that policy? Carl Russo: Yes, I’m on record as saying that. Light Reading: But there’s a component shortage in the optical networking industry [see Components Shortage Delays Deliveries ]. Don’t you need to acquire component vendors in order to guarantee your supply of a given component? Carl Russo: God, no. Light Reading: But aren’t you running the risk, by not buying component manufacturers, that you’re going to run out of key components? Carl Russo: Excuse me for one moment, but why does owning the source do anything to mitigate that risk? Light Reading: Because you have first right of refusal. Carl Russo: That is a horrible misconception on your part, sir. A horrible, horrible misconception. Light Reading: Well, Nortel would say that I’m right, and you’re wrong. Carl Russo: Which is why they’re trying to spin off their component business. I mean, give me a break. Lucent’s another one. They’re also spinning off their component business. If we were living in a world of rough stasis, where technology wasn’t changing very much, you could say that there’s not very much risk to owning component manufacturing facilities. But the truth is that optical components are being obsoleted every half minute. Why would you want to buy a component vendor just so you could guarantee yourself a source of supply of a component that’s obsolete three weeks later? By staying out of that business we have created the most appealing of customers for all of the components companies. We help them; they help us. The last thing I want to do is own a component source. And the day we buy one is the day every other component vendor goes [makes a curious hand gesture]. --------------------------------------------------------------------------------