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

To: The Phoenix who wrote (47968)	2/5/2001 2:25:52 PM
From: t2	Read Replies (1) \| Respond to of 77399

I heard the PMCS conference call (Cisco being the largest customer--I believe over 25%). Cisco tells PMCS not to ship products. Cisco was probably working off old inventory. The other point to remember is that they probably new that they won't get a shortage or long lead times when the went back to PMCS. Sort of a "just in time" inventory management. Must have happened with many of their suppliers. That is why I feel their inventory levels will decline but the lead times with suppliers get shorter....meaning they don't have to keep as much on hand inventory as in the past. Their problems used to be getting components from one supplier while waiting for the other----meaning they could not fill orders. That may be getting better now. I would not be surprised to hear of improvements even in the last week or so--which will get factored into their outlook.

To: The Phoenix who wrote (47968)	2/5/2001 2:31:07 PM
From: Tulvio Durand	Read Replies (3) \| Respond to of 77399

... - that each product does not have an associated cost.... that this is ignored and COGS are then calculated on the macro. From my many years of program management experience, I can attest that is absolutely not so. Individual cost centers are set up for each contract, each program, each product. Otherwise it would be impossible to manage anything. What is being suggested by John and Disciple would require two sets of books -- would be very unconventional if not also illegal. Tulvio