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

To: kvkkc1 who wrote (55925)	10/12/2001 11:12:01 AM
From: Stock Farmer	Respond to of 77400

kvkkc1: I'd also like a breakdown of revenues between "product" and "services". One wouldn't expect revenues from existing service contracts to be affected by a slowdown. Except for bad debts. In cost-containment exercises, existing contracts are treated in a different light than new contracts. So anything ongoing will survive the first pass critical eye. Renewal time is when the spotlight shines. Depending on the mix, service contracts may represent an artificial and temporary bottom on the networking sector. And we aren't even a year from when Cisco ran into the wall, so they still have substantial service revenue contracts to count on. However, IT managers who are having their budget cast for next year are likely looking at baseline from this year in a downward trend as a directive from the CFO's office. Yikes. They've already cut staff. They've already cut new programs. They've already been squeezed. The next few slices will be very close to the bone. So if this is going on in their customers... one's got to think about the impact on any "recovery". John