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To: D.B. Cooper who wrote (9755)	11/12/2002 11:04:36 AM
From: D.B. Cooper	Respond to of 13815

Cisco Systems order backlog is rising, CEO says 11/12/2002 10:20:53 AM NEW YORK, Nov 12 (Reuters) - Cisco Systems Inc.'s (CSCO) order backlog, used by analysts to gauge future sales, is rising, the technology bellwether's chief executive said on Tuesday. John Chambers said the backlog at Cisco, the No. 1 maker of equipment that directs Internet traffic, is above the $1.4 billion it reported on Sept. 9. That figure was down from $2 billion a year earlier, leading some analysts to worry that sales could be weakening. "I'm very comfortable with and it is comfortably above $1.4 billion," he told investors at a UBS Warburg telecommunications conference in New York. Backlog includes orders for products to be shipped within 90 days. Cisco, seen as a key benchmark for the health of U.S. companies, previously said backlog is not indicative of actual net sales for any future period, and Chambers warned again on Tuesday that the number at any point is a "snapshot in time." Cisco's stock was up 29 cents, or 2.4 percent, at $12.45 in morning Nasdaq composite trading. So far this year the stock has fallen more than 30 percent. Last week, when Cisco reported its fiscal first-quarter net profit of $618 million, the company told analysts after its conference call that its backlog was rising. At the time, Cisco disappointed analysts and investors when it forecast sales in the quarter ending in January would be flat to down 4 percent compared with the previous quarter's $4.8 billion. Many had been expecting a prediction of flat to rising sales, and the company's forecast dampened hopes for a near-term rebound across the sector After the warning, analysts expect Cisco to earn 13 cents a share before one-time items in its second quarter on sales of $4.75 billion, according to Thomson First Call. When asked on Tuesday why Cisco did not use its strong profit margins to take market share by cutting prices, Chambers said price is not among the top three concerns of Cisco's customers, and companies find it hard to boost prices again after cutting them to take share. marketwatch.com