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

To: sandeep who wrote (62845)	1/31/2003 1:34:34 PM
From: REH	Read Replies (1) \| Respond to of 77400

Overselling CSCO must and will benefit from the government (defense and otherwise) spending. Just look at the massive orders FDRY pulled latly. REH/long

To: sandeep who wrote (62845)	1/31/2003 2:07:50 PM
From: Mick Mørmøny	Respond to of 77400

UPDATE 1-Router sales to fall this year, then grow -study 1/30/2003 4:51:46 PM REDWOOD CITY, Calif., Jan 30 (Reuters) - Global sales of routers used to direct network traffic will decline for the third straight year in 2003 before returning to growth next year as businesses gain confidence in their outlooks, according to a report released on Thursday. The market for routers, machines that connect two computer networks for the transmission of data and information, is forecast to fall 2 percent this year to $6.2 billion, according to a study prepared by research firm the Dell'Oro Group. The market is then expected to grow at an average annual rate of 6 percent through 2007, hitting $7.9 billion at that point, Dell'Oro said. Global wireline spending by telecom service providers is expected to decline by 5 to 10 percent in 2003, according to the study. However, the study said service providers will place routers at the top of their spending priority lists as they expand Internet Protocol infrastructures. Sales of low-end routers, which cost less than $2,000 per unit, likely will grow 5 percent in 2003 to $1.5 billion, but begin a gradual and steady decline in 2004 as service providers offer alternatives services, Dell'Oro said. Sales of mid-range routers are expected to be flat this year at $1.6 billion, and then grow 10 percent a year through 2007. Sales of the high-end routers, used by telecom service providers to manage and carry Internet traffic, are expected to see minimal growth in 2003, ending the year at $1.4 billion, Dell'Oro said. Starting in 2004, however, that segment, which is dominated by Cisco Systems Inc. (CSCO) and its smaller rival Juniper Networks Inc. (JNPR) , is expected to see growth of 10 percent a year through 2007, according to the study. In a separate study, Dell'Oro expects sales for Ethernet switches, used to direct data traffic on a network, to grow 3 percent this year to $11.7 billion. Sales in the segment, also dominated by Cisco, will then grow between 6 and 10 percent a year until it hits $16 billion in 2007. (Reporting by Ben Klayman; Reuters Messaging: ben.klayman.reuters.com@reuters.net; 312-408-8787; benjamin.klayman@reuters.com)