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

To: Gerald Walls who wrote (10252)	11/5/1997 12:46:00 AM
From: Zoltan!	Respond to of 77400

Banner WSJ article has Cisco pulling away from "all other": interactive.wsj.com (excerpt) Tuesday's earnings showed several of the reasons that Cisco ranks behind only Microsoft Corp. and Intel Corp. as the most valuable company on the Nasdaq Stock Market. The $15 billion computer-networking market, which spooked investors earlier this year with a slowdown in growth, has rebounded, said Smith Barney analyst Therese M. Murphy. Cisco's sales were not only up 30% from a year ago, they grew 6% from the preceding quarter, double the rate at which they were growing two quarters ago. Revenue, Profit Surge In addition, Tuesday's results show Cisco continuing to pull away from its competitors. Paul Johnson, an analyst with Robertson Stephens, said Cisco is now making almost 54% of the profit of the entire networking industry -- up from 48% last year -- and collecting 44% of the revenue, up from 41%. Cisco has built up that position by persuading big companies that it should be their one-stop provider for all of the disparate machines needed to link computers over the Internet and corporate networks. The company's products are usually more costly than those of its competitors, and in some cases they come without all the latest bells and whistles. But Cisco has nonetheless won its dominant position by promising to hold its customers' hands as networks grow both more complex as well as more vital to everyday business operations. Tuesday's report came in a quarter that is usually a slow one for the industry. But analysts said Cisco is benefiting from strong new products in the two product categories, routers and switches, which together make up a majority of its sales. Cisco also has brought out new versions of communications products that are expected to help it make inroads at Internet service providers, one of the hottest portions of the networking marketplace. Cisco's gross profit margins remain close to 65% and the company is managing to keep them high despite an industrywide technology shift toward less costly, and thus less-profitable, networking devices. One reason, said Eric Blachno of Bear Stearns, is tight business controls. "They are managing the company in an excellent fashion," he said. Another WSJ article recounts bullish conference call: interactive2.wsj.com!BT11/0417:554794!BT11/0417:134509!BT11/0416:214069!BT11/0416:194056!&time=11/04+22:02 (excerpt) The industry leader said its book-to-bill ratio was "slightly greater than one" after four quarters of the measure being equal to one. The increase, which Cisco said was spread across its product line and through most of its geographies, shows that orders were coming in significantly faster than products were shipped. "It means that business is really healthy," said Smith Barney analyst Therese Murphy. "They weren't going down to the wire to make the quarter."...... Cisco's Chief Executive John Chambers said the company appeared to gain market share against competitors in most market segments. Regards

To: Gerald Walls who wrote (10252)	11/5/1997 1:55:00 AM
From: Eric	Respond to of 77400

Cisco's CC number: 1-800-633-8284 reservation #3219514