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

To: Lizzie Tudor who wrote (65424)	5/11/2004 11:36:38 PM
From: Elroy	Respond to of 77400

I'm pretty sure Cisco is looking to push more and more of their business into the service model. Not that I'm aware of. Some level of service business is natural as a result of network installation and support (especially in the service provider customer vertical). I don't think CSCO is doing anything along the line of IBM's OnDemand computing (where the customer's servers/mainframes/storage systems are hosted offsite by a 3rd party, and the enterprise pays a monthly "rental" fee to the 3rd party for usage). Numbers looked good to me. Revenues, EPS, operating and free cash flows looked better than expected. Only negatives I saw were lower inventory turns and (I think) a dip in gross margins. Pretty surprised the stock dipped after hours considering CSCO is now cruising into its fiscal year end in July. April is always the seasonally WEAKEST month of the year for CSCO, so with the bad quarter out of the way I figured its up from here. We'll see. Elroy