Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: jhild who wrote (14008)	3/19/1998 9:58:00 PM
From: Moonray	Read Replies (1) \| Respond to of 22053

Cisco confident growth will stay strong HANOVER, March 19 (Reuters) - Cisco Systems Inc, the acquisitive California company that sells Internet enabling equipment, said on Thursday it expects powerful growth to continue, despite nervousness about some high-tech corporate prospects and the debacle in Asia. In an interview with Reuters, Cisco Systems Europe vice- president Yvon Le Roux said that, despite a slowdown in Japan, the overall company would still grow as fast as last year. Earlier this week, Bay Networks, the third biggest U.S. networking company behind first placed Cisco and 3Com Corp, shook up the sector with news that fiscal third quarter revenues were likely to fall about 10 percent compared with the second quarter. On March 3, fourth placed Cabletron Systems Inc announced a profit warning. Last month, the high-technology sector was spooked by bearish statements from semiconductor giant Intel Corp, electronics maker Motorola Inc and world personal computer leader COMPAQ Computer Corp. Prices rallied when experts said that, despite some short-term hiccups, the long-term prospects for information technology remained strong. Le Roux saw no reason for these problems to hurt Cisco, talking on the company's stand at the annual CeBIT high technology fair which opened today. "The outlook is still strong in Europe and, in the overall corporation, probably stronger here than in some parts of the world," he said. "In Asia we've had negative impact like everybody else, but the overall corporation continues to grow in several digits and we feel it will continue to grow faster than the overall market, which is growing (revenues) between 30 and 50 percent." "There is a slowdown in demand (in Asia) overall, particularly in Japan. We have grown significantly there in the last few years from a $40 million operation to a $400 million operation. We've slowed there because of a problem with the economy. It's impacting us overall as a company, but we are still growing at the same pace as last year," Le Roux said. At a conference in Paris last September, Palo Alto, California based Cisco said it was looking to acquire high technology companies in Europe. Since then the California based company has announced a string of multi-million dollar takeovers, but none in Europe. "We have people that are charged with looking at technology in Europe. We are not ruling out maybe an acquisition in that sector. If there's interesting technology in Europe, we will evaluate it and maybe even buy a company," he said. Is a European deal imminent? "NO," he added. Cisco recently acquired NetSpeed Inc, which makes consumer products based on Digital Subscriber Line (DSL) technology. DSL turbocharges regular copper wire to allow vast streams of data to flow into personal computers. Until recently, the huge and rapid flows of data that would be the bedrock for a viable information superhighway, were only thought to be possible after a huge investment in expanding the physical capacity of telephone networks. DSL technology promises a cheap solution to that problem. "We are continuing to expand further down to small and medium business and are very interested in the DSL technology. I think there is a massive consumer market, not necessarily waiting for DSL technology, but with our acquisition of Netspeed we are evaluating how far into that market we can go and how fast," said Le Roux. o~~~ O