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.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (46778)	2/6/2001 5:22:29 PM
From: Softechie	Read Replies (1) \| Respond to of 57584

Look at inventory building up! How long does it take to work off that inventory in 0%-2% GDP economy. Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Chambers says quarter was mixed: blames "dramatic" slowing of capital spending in US service provider marketplace, but also notes that there were "early signs of some softness with a few US enterprise customers." Says sales softness began in the 2nd week of December and continued through January.

To: American Spirit who wrote (46778)	2/6/2001 6:28:38 PM
From: maverick61	Read Replies (3) \| Respond to of 57584

CSCO Conf Call so far: * Next several quarters will be challenging * Too much inventory - up 25% * DSO up 7 days * A/R up 22% to 3.5B * Gross margin down 170 basis points * Forward contracts for component suppliers now hurting them (ie they locked into expecting X demand - but demand is now lower) * Will have to be more selective on giving vendor financing going forward * Weakness will continue at least thru first half of the year * Q3 revenues flat to down 5% * Q4 revenues flat with Q3 * revenue growth for 2001 40% 0ver 2000 * Inventory related issues likely to pull down GM next quarter * Inventory could be up again next quarter * Visibility weak no matter which way you cut this, its a bad quarter and weak outlook. Only a fool would believe otherwise. Now, whether it is all priced into the stock is another story (I know I was expecting this - so many may have already priced it in) - could also be so many shorts in it covering that it doesn't go down further or actually rises - or it could fall more given its high p/e and this guidance / results. that no one can predict. but it was a bad quarter and weak outlook - make no mistake about that PS - to all, if i missed any key points, please post them. I wanted to recap what I heard for the benefit of others who didn't have the chance to listen