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To: oldirtybastard who wrote (7604)	3/25/2001 10:34:46 PM
From: Tom Hua	Read Replies (1) \| Respond to of 19633

DJ Cisco: US Downturn To Last For At Least 3 More Qtrs -FT 25 Mar 18:47 TOKYO (Dow Jones)--The US economic downturn will continue for "at least three more quarters" and possibly longer, according to John Chambers, the chief executive of Cisco Systems Inc. (CSCO), the Financial Times reported Monday in its international edition. The US economy had deteriorated significantly since Cisco - the leading supplier of computer networking equipment - warned in January that it expected the downturn to last for two quarters or more, Chambers said. Although Chambers did not warn on profits, his comments are likely to fuel anxiety about the deterioration of the US economy that prompted sharp global stock market falls last week, the FT said. The company, which is considered to have one of the most advanced "real-time" internal systems for monitoring day-to-day worldwide customer demand, missed its quarterly earnings target last month for the first time in six years. As recently as November Cisco enjoyed a growth rate of over 70%. By February orders had dropped below those of the same month last year. It may have been the "fastest deceleration that any company had ever experienced," Mr Chambers told the FT. "We thought this [downturn] would last for two quarters. Now we are saying that it will last for at least three quarters," Chambers said. "The slowdown that we saw in January is continuing in February and March. We have seen the issues expand to Asia-Pacific and we see the early signs in Europe." Mr Chambers, known as a close supporter of President George W. Bush, urged US government agencies to take more drastic remedial action. One "big problem", he said, is that "business leaders are making decisions based on real time data, while governments are making decisions based on data that often lags by one to three months, and old economy data rather than new economy data." (END) DOW JONES NEWS 03-25-01 06:47 PM Copyright 2001 Dow Jones & Company, Inc.