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

To: Stock Farmer who wrote (52609)	5/9/2001 9:57:21 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77397

SG&A and marketing (PS marketing is usually included in SG&A) will go down substantially. They just laid off a bunch of workers so that will help with salaries expense, but also they have cut corners everywhere to save on expenses. For instance, cutting product lines and the related headcount damages margins in the short term, but gets cleared out in the longer term. Their gross margins will probably start to improve after their inventory woes are over (I'd say it will start moving up from 50% range over the next few quarters), and their net margins will improve due to their cost cutting efforts.

To: Stock Farmer who wrote (52609)	5/9/2001 9:57:42 AM
From: RetiredNow	Respond to of 77397

SG&A and marketing (PS marketing is usually included in SG&A) will go down substantially. They just laid off a bunch of workers so that will help with salaries expense, but also they have cut corners everywhere to save on expenses. For instance, cutting product lines and the related headcount, damages margins in the short term, but gets cleared out in the longer term. Their gross margins will probably start to improve after their inventory woes are over (I'd say it will start moving up from 50% range over the next few quarters), and their net margins will improve due to their cost cutting efforts.