To: Stock Farmer who wrote (48100 ) 2/6/2001 12:13:39 PM From: Tulvio Durand Read Replies (2) | Respond to John, Your and FD's points about inventories buildup are well taken, and I've learned a bit more about accounting from the discussions. But, am also suggesting that suspicion bordering on paranoia surrounding how Cisco will make earnings is unfounded for a company that is a pillar of the American economy. The emphasis should rather be on the business climate, competitiveness, products, and prospects -- this is the real key to profits, and not the accounting. Towards this we should take note of following from Fortune, which should have important bearing on Cisco's numbers.fortune.com ... Cisco's wounds aren't as deep as they appear. The slowdown in spending by carriers is not affecting all areas of technology equally. In fact, U.S. carriers are expected to boost spending on Internet infrastructure by 34%, to $22 billion, in the coming year, vs. a 23% jump in 2000. SBC Communications, one of the country's largest local phone companies, is among the carriers that have started buying lots more equipment from Cisco. Two years ago SBC's purchases from Cisco totaled "tens of millions,'' says Ross Ireland, SBC's senior vice president of network planning and engineering. Today it's "hundreds of millions'' a year—and rising.
