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To: Martin Milani who wrote (12202)	12/14/1997 2:22:00 AM
From: Mang Cheng	Respond to of 45548

Quite negative on Cisco : "Analysts Concerned by Cisco" The Motley Fool - December 12, 1997 17:48 December 12, 1997/FOOLWIRE/ -- Cisco Systems (Nasdaq: CSCO) dropped $6 1/8 to $76 9/16 today after some analysts looking at the company's inventory breakdown in the latest 10-Q filing began to get antsy. Although overall inventory levels dropped 5.3% from July to October, the breakdown of the inventory itself is what has everyone worried. In Note 4 to the Consolidated Financial Statements, the following appeared: Inventories (In thousands) October 25, July 26, 1997 1997 (Unaudited) Raw materials (000's) $51,802 $ 89,226 Work in process 97,751 114,724 Finished goods 69,754 21,733 Demonstration systems 21,815 28,994 $241,122 $254,677 As a percentage of total revenues, Cisco's "finished goods" rose from 8.5% of total inventories to 28.9%. Assembled systems ready for sale increased 221.0% quarter-over-quarter, a sign that even nigh invulnerable Cisco may be seeing the same kind of weakness 3Com (Nasdaq: COMS), Cabletron (NYSE: CS), Bay Networks (NYSE: BAY) and Ascend Communications (Nasdaq: ASND) have all reported in the past few weeks. This could also explain the weakness at Kent Electronics' (NYSE: KNT) K*TEC contract manufacturing unit reported last night, as it does business with Cisco. www1.newsalert.com