Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ahhaha who wrote (60432)	7/24/2002 8:53:19 PM
From: RetiredNow	Respond to of 77400

Either way, it's a problem. But take a look at what Cisco is doing now. How many companies have they purchased recently? Not many. They seem to be hoarding cash. Last quarter they converted their leases and that cost $2B, but other than that, they are really hoarding. They should be doing the opposite. I understand the desire to have plenty of cash to ride out a downturn, but they should be investing during the downturn as well. They don't need a $21 B cash hoard to ride out a downturn. Instead, we're seeing that their ROI is plummeting. Oh well.

To: ahhaha who wrote (60432)	7/24/2002 9:05:23 PM
From: ahhaha	Read Replies (1) \| Respond to of 77400

On July 17, Nuti spoke with BusinessWeek Online reporter Olga Kharif about why he left and what his plans for Symbol. Edited excerpts of their conversation follow: Q: You were considered heir apparent at Cisco. Why did you leave? A: The No. 1 reason is the opportunity at Symbol. It has a unique value proposition. I really, truly believe that the future is not just purely about infrastructure, in terms of hardware and software of the networks. It's really about how do you vertically integrate applications and infrastructure so that you can bring value to customers? This is a serious allegatioin against CSCO. And I think Symbol is extremely well positioned to take advantage of that. So it's really about Symbol's growth opportunity in the future. Q: Had you been looking around? A: No. I don't think I've been on an interview, with the exception of Symbol, for 11 years. This was something that just really came up out of the blue. Sure, Nuti, sure. It also happens to be very close to my home. That's certainly a low-priority part of the decision, but it also happens to be another benefit. Q: What do you hope to bring to the company? A: One, just a wealth of experience in terms of building businesses, from those that are very small to those that are very large. Second, I have operational expertise in terms of executing the strategic business plan that [Symbol CEO] Rich Bravman has been working so hard on these last several months. I will be his arms and legs, and will help him to execute that business plan. Third, I bring a different perspective. Sometimes the best ideas are born from those who have little knowledge of your past and are not bound by nostalgia. Another blow against the vertcially stiff corporate structure at CSCO that is close to IBM of the '60s. Q: The Securities & Exchange Commission is looking into Symbol's accounting practices. Were you concerned about coming on board at this time? A: I've done a really good job, in terms of due diligence, during my interviewing and recruiting process. I tried to understand these issues. And I feel comfortable that Symbol is handling them extremely well and is cooperating fully with the SEC and other parties. Q: Will Symbol be competing more against Cisco in the future? A: I don't consider Symbol a tremendous Cisco competitor, although, in the wireless space, there will certainly be some level of competition. I do think they are two dramatically different companies. Cisco mainly focuses on infrastructure sales and on building networks. Symbol takes networks as an artist would take a piece of clay and molds them around customers' requirements and then vertically integrates the business process. Q: Do you like Cisco's strategy at this point? A: Cisco is a great company. I think [CEO] John Chambers and the entire executive leadership team are doing all they need to do in terms of returning the company back to growth. But ipso facto they aren't doing that, else why would he be going to a company that is doing what CSCO needs to do? I don't see them changing their strategy, although, at this stage, I am not in the position to say whether or not that's going to change. Another blow against the empire. They are outperforming in their market by orders of magnitude compared to their competitors. Given their competitors are mostly near bankruptcy the comparison hardly is encouraging. Q: Some investors seem to be wondering if something is wrong with Cisco's service-provider business... A: That's a hogwash. When you're building a service-provider strategy, as we have at Cisco, you're running a marathon race, not a 40-meter dash. His reply is hogwash. You're running a 20 meter dash because forces of technological obsolescence are coming from everywhere. That strategy is working extremely well. Personally, I think their chance of success with service providers is very, very high. I wish them nothing but the best of success. Q: Why do you think so many people are leaving Cisco? A: Over the past few years, a number of dynamics in the market have certainly changed the landscape of this business. Then how could he make the above asertions? The guy is getting out mainly because he sees the handwriting on the wall. And any time there's a little bit of turmoil, you are certainly going to have people make career changes. That being said, on the percentage basis, Cisco is not losing many people at all. There were a couple of high-profile cases, including myself. But, considering its overall workforce, there haven't been many people leaving at all. But that side stepped the question just like a politician would. I guess that's what you end up becoming when you work in a straight jacket. Q: Who do you see as the successor to John Chambers now? A: I have no idea. I feel fortunate to have worked with John Chambers. The only person who knows who the successor will be is John Chambers. Q: Do you see any signs of a recovery in the equipment industry at this point? A: Until visibility returns in this industry, I don't think you'll see anyone stepping out and saying there's a light at the end of the tunnel. Next year could, possibly, be better. Of course, the guy doesn't think that's true for Symbol.