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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (46035)	2/7/2006 8:13:41 PM
From: shades	Respond to of 116555

Blue horseshoe luvs CSCO - who was the insider trader Mish? =DJ Cisco CEO: 2Q Orders Strongest In More Than A Year >CSCO By Mark Boslet Of DOW JONES NEWSWIRES PALO ALTO, Calif. (Dow Jones)--Cisco Systems Inc. (CSCO) turned in strong fiscal second-quarter growth in orders, logging its best performance in more than a year, said Chief Executive John Chambers. Speaking on a conference call Tuesday, Chambers said 20% orders growth in the U.S. was particularly strong. The company also saw am improvement in business in Europe compared with the first quarter, he said. Orders companywide rose at a percentage in the "midteens," he said, compared with the company's prior expectation of 10% to 14% growth. "We view (the second quarter) as a solid revenue quarter and an excellent orders quarter," Chambers said. DJ Cisco CEO: 2Q Orders Strongest In More Than A Year -2- On the second-quarter conference call, Cisco Chief Financial Officer Dennis Powell said router sales in the quarter were up 7% and switching sales up 12%. The company said its high-end CSR router was gaining steam with customers. Sales to corporations, or enterprises, also improved, said Chief Executive Chambers. However, Chambers expressed concern about the business environment in the U.K., where the company's sales were weak. For the third quarter, Chambers said he sees revenue up 10% to 12% compared with the third quarter of last year. Order growth should be 10% to 15%, he said. Cisco expects business momentum to increase quarter to quarter as the fiscal year unfolds, he said. Powell added that the third-quarter gross margin should be about 67%. For the 2006 fiscal year, revenue should be up 10% to 12%, he said. In the years to come, the company believes it can grow at a 10% to 15% pace, Powell said. DJ Cisco CEO: 2Q Orders Strongest In More Than A Year -3- . Cisco anticipates its $6.9 billion merger with Scientific-Altanta Inc. (SFA) will close during the third quarter, said Chief Financial Officer Powell. The company declined to discuss its financing options for the deal. But Powell said he expected to see Scientific-Atlanta contribute $250 million to Cisco's third-quarter revenue and operate with a pro-forma gross margin of 36% to 38%. The revenue contribution should increase to $525 million in the fourth quarter, and overall the company's impact on Cisco's pro-forma earnings should be "neutral" or "slightly positive," Powell said. -By Mark Boslet, Dow Jones Newswires; 650-496-1366; mark.boslet@dowjones.com (END) Dow Jones Newswires February 07, 2006 17:58 ET (22:58 GMT)