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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (52707)	6/5/2002 1:18:28 PM
From: Jim Willie CB	Respond to of 65232

sounds like WhiteVille, north Chicago wealthy suburbs /jw

To: Boplicity who wrote (52707)	6/5/2002 3:56:06 PM
From: stockman_scott	Read Replies (3) \| Respond to of 65232

Cisco CEO Looks for a Recovery Next Year By Ben Klayman Wednesday June 5, 1:35 pm Eastern Time ATLANTA (Reuters) - Cisco Systems Inc. (NasdaqNM:CSCO - News) Chief Executive John Chambers said on Wednesday he sees a revival in telecommunications industry spending next year, led by a rebound in the U.S. economy. "I'd say next year, as soon as the economy comes back as people expect," he told Reuters in an interview at the Supercomm, a major communications equipment conference in Atlanta. "We believe the commercial marketplace will come back first," Chambers added. "That will be followed by the enterprise, and that will be followed by the service providers. Unfortunately, service providers lagging two to six months behind the enterprise." Enterprise, or large corporate customers outside telecommunications, make up almost 80 percent of Cisco's revenue, while telecom accounts for more than 20 percent. Telecom accounts include service providers, which are traditional phone carriers. Chambers said Cisco, the world's largest maker of equipment that directs Internet traffic, wants to boost telecom's share of its revenues in three to five years to 40 percent to 50 percent. "I'm a little bit more optimistic about spending in the second half (of the year) for the enterprise customers than my counterparts are," he said. Chambers repeated statements he's made previously that chief information officers at enterprise customers tell him they see second-half spending in that sector of the U.S. economy flat to up. Chambers declined to say how the current quarter, Cisco's fiscal fourth quarter, was shaping up. "We do want to be boringly predictable," he said. "In and of itself, that's a signal." Historically, before the slowdown hit the communications industry last year, Cisco had beat analyst earnings forecasts by a penny. Analysts expect Cisco to earn 12 cents a share on revenues of $4.92 billion in the fiscal fourth quarter ending in June, according to Thomson First Call, which tracks such data. Cisco's stock was off 40 cents, at $15.68, in afternoon trade on Nasdaq. Since the start of the year, it has declined about 14.5 percent, but has outperformed its peers in the American Stock Exchange Network Index (AMEX:^NWX - News), which has slumped more than 40 percent in the same period. San Jose, California-based Cisco has been pushing to boost its telecom business. It has signed agreements since late last year to supply gear for such carriers as Britain's Cable & Wireless Plc (London:CW.L - News) and Sprint Corp. (NYSE:FON - News), the No. 3 U.S. long-distance telephone carrier, while promoting those companies' efforts with Cisco's corporate customers. During the dot-com bubble, Cisco focused more on the smaller, emerging carriers that were rapidly appearing and expanding in the telecom sector, while largely ignoring the larger, incumbent players. In fact, the slowdown led to the collapse of many of those smaller players and a refocusing by a more contrite Cisco. "Cisco made a lot of mistakes earlier by not being driven as much by our customers in the carrier market place and I apologize for that. It won't happen again," Chambers said earlier in a speech to industry officials. Chambers also reiterated to Reuters his company's commitment to its approach on acquisitions, saying he prefers buying privately held small- to medium-sized companies to larger ones. He said that the communications industry's major segments will continue consolidating. "The market's consolidating faster than people realize," he said. "The industry is going to come down to three to five players. There's a good chance Cisco will break away by itself and there will be a second-tier pack." Cisco, largely from its large cash position of more than $21 billion, is constantly linked in rumors and reports to smaller rivals.