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

To: The Phoenix who wrote (12337)	2/7/1998 2:38:00 PM
From: johnlea	Respond to of 77400

new to forum. i'd like to ask the group for comments on a couple of things that i heard in the cc. 1. isp activity in the 2nd qtr was very strong. chambers said he was told (by internal people presumably) that isp's traditionally buy heavily in the 2nd half of the calendar year and therefore there was some caution about isp buying strength in the next two quarters. does anyone know if isp's really are cy backend loaded? 2. gross margins are likely to lessen slightly. i believe chambers said close to the 60% level. 3. refocusing over the next 3-5 quarters to take on the telecom equipment giants for voice/video/data switching equipment. any thoughts as to how easy/difficult it will be for csco to compete with lu, ntt, etc? 4. over next quarter (possibly 2, headcount will grow at up to double the normal rate. and over the next few quarter (3-5?) r&d will also increase (can't remember the percent. while csco is undeniably a well run company, i thought that these points made during the cc would impact analysts short term forecasts, but to my knowlege, they have not. are sales growing faster than analysts had forecasted for the next few quarters to offset slightly lower margins and a substantial increase in operating expenses? are there other reasons for the quarterly forecast the remain unchanged or even be increased?