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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (48848)	5/8/2002 7:30:01 AM
From: JDN	Read Replies (2) \| Respond to of 64865

Anyone seen the promotions for the upcoming TV show? WHO SHOT CHARLES TUTT?? JDN

To: Steve Lee who wrote (48848)	5/8/2002 12:23:48 PM
From: Kevin Rose	Respond to of 64865

Steve: Didn't that April 01 quarter include $2.25b inventory writedown included in the cost of sales? Historically, the cost of sales/margins are more in line with this quarter than the April 01 quarter: Jan 02 Oct 01 Jul 01 Apr 01 Revenue $4,816m $4,448m $4,298m $4,728m Cost Of Rev $1,846m $1,756m $1,862m $4,400m Gross Prof $2,970m $2,692m $2,436m $328m I believe the claims of improved margins by CSCO this quarter are lower component costs and improved cost controls. That would make sense, in that the biggest benefit of this downturn is that companies are really working at cost controls and productivity (remember yesterday's 8+% productivity numbers). I hear many anecdotals about layoffs resulting in fewer people left to do the job. The result is that the people are forced to work longer hours for the same pay, thus a 'jump in productivity'. Of course, this effect is temporary, and as the economy improves, so does the job market, and people are 'released' from productivity hell as more outside opporunities present themselves. Skeptics can indeed point to the fact that CSCO's rev did not improve, they missed the rev number (slightly), and did not guide higher (although I don't think they guided lower). Also, how long will the market bask in CSCO's results? Probably right up until the next disappointment. But then again, the market was hungry for ANY excuse to go up after the recent battering. Optimists will point to CSCO's results as a bottom marker. Meeting (and slightly beating) expectations in a tough economy in a tough quarter is no mean feat. Maybe Scott will actually deliver on his promises this quarter; if so, expect to see SUNW experience the same revival as CSCO...