To: Monty Lenard who wrote (42197 ) 11/4/2000 2:55:02 AM From: Ed Forrest Respond to of 77400 Cisco sales growth seen rising By Bloomberg News November 3, 2000, 12:55 p.m. PT Networking giant Cisco Systems is expected Monday to report that fiscal first-quarter sales rose 61 percent, the 11th straight quarter of faster revenue growth. Whether Cisco will be able to keep the streak going after that is a big question that investors hope will be answered on the company's conference call. Profit excluding acquisition-related and stock-option costs and investment gains rose to 17 cents a share from 11 cents, based on the average forecast of analysts polled by First Call/Thomson Financial. Cisco shares, considered a technology bellwether, are on track for their worst-ever annual performance. Investors became more skittish last week when rival Nortel Networks' third-quarter sales fell short of forecasts, sparking fears of a slowdown for communications-equipment makers. Nortel shares plunged 29 percent last Wednesday after it disclosed results. "Investors are on edge with Cisco," said Bruce Bartlett, a portfolio manager at OppenheimerFunds, which held 19.7 million Cisco shares as of June 30. "Every quarter now is kind of expected to have a higher probability that it's the quarter that shows the company is slowing down." Although Bartlett said he doesn't think Cisco's first-quarter sales growth will slow, he said he believes Cisco's revenue and profit outlook "will have both positive elements to it and some cautionary elements to it." Cisco shares are up 4.1 percent this year. The previous worst annual performance for the stock was 1994, when the shares climbed 8.7 percent. The shares more than doubled in 1998 and 1999. The company will disclose results after the market closes on Monday and will hold a conference call at 4:45 p.m. New York time.