To: Paul Shread who wrote (2730 ) 3/13/2001 11:42:05 AM From: Stephen Read Replies (2) | Respond to of 52237 Re CSCO - Chambers comments ... all I could find ... fwiw ... NEW YORK, Mar 13, 2001 (The Canadian Press via COMTEX) -- Business is weakening in Asia on top of a severe U.S. slowdown, according to another dismal update from Cisco Systems Inc., the network equipment maker that led the technology bull market which now is being ripped to shreds. Chief executive John Chambers told a Merrill Lynch conference Tuesday that conditions haven't improved from the sharp downturn Cisco experienced in January, and the near-term outlook is still grim. However, Chambers didn't officially lower his company's forecasts as he did in January. The company warned then that revenue could fall five per cent in the current quarter - the first decline in its 11-year history as a public company. "We have seen the same slow growth in orders in the first six weeks of this quarter that we saw in January," Chambers said. "It's becoming more challenging, especially in the Asia-Pacific region." He added that there are signs of sluggishness in Latin America and Europe. The San Jose, Calif.-based company is already taking steps to counteract the sluggish economy. Late last week, Cisco unveiled plans to cut 5,000 full-time employees - 11 per cent of its regular workforce - and up to 3,000 temporary and contract workers. The latest remarks from Cisco, one of the most popular technology companies among investors, came amid a frightening fall in the Nasdaq stock market that has wiped out more than two years of thrilling gains. More than any other sector, the slide has battered the so-called Internet economy which had been based on projections of exploding online usage. Chambers said Cisco, the world's biggest supplier of equipment for building the Internet, is still confident about long-term demand for online services and network capacity, standing by long-term revenue growth projections of 30 to 50 per cent a year. However, "visibility is tight," Chambers said. "We're not able to see out into future like we normally would." The online source for news sports entertainment finance and business news in Canada Copyright (C) 2001 The Canadian Press (CP), All rights rese Regards Stephen