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

To: IBthinkin who wrote (14996)	7/11/1998 5:25:00 PM
From: Joseph G.	Respond to of 77400

<< they don't exclude the non-recurring charges>> Why non-recurring charges recur every year?

To: IBthinkin who wrote (14996)	7/12/1998 1:44:00 AM
From: jach	Read Replies (1) \| Respond to of 77400

---- key analysis --- June 8, 1998 CISCO SYSTEMS INC (CSCO) Quarterly Report (SEC form 10-Q) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS --- extracted --- Net sales grew to $2,184 million in the third quarter of 1998 from $1,648 million in the third quarter of 1997. Net sales for the first nine months of 1998 were $6,069 million, compared to $4,675 million in the first nine months of 1997. The 32.5% increase in net sales between the two three month periods and the 29.8% increase in net sales between the two nine month periods was primarily a result of increasing unit sales of LAN switching products such as the Catalyst(R) 5000 family, access servers such as the Cisco 3600 family, ------- from this info, in both qtrs LAN switch sales provided majority of growth (portion from 3600 and service contracts), not core routers or WAN switches. The LAN switch mkt is now very competitive and totally unlike 2 qtrs ago with many GB startups and BAY and 3COm with their strong products (note that it is very easy to get a foot-hold in Enterprise level also and unlike core routers or large telco-based switches). Going forward it'll be difficult to retain these strong rate in the LAN and if the core routyer and WAN switches still stay flat the primary contributor growth rate will probably be not the same as last 2 qtrs; looking at insiders trading, no buying - biz.yahoo.com -------------------- and increased service contract sales. The sales growth rate for lower-priced access and switching products targeted toward small and medium-sized businesses has increased faster than that of the Company's high-end core router products. These products typically carry lower average selling prices, and thus have slowed the Company's growth rate versus last year. Additionally, some of the Company's more established product lines, such as the Cisco 2500 product family and the Catalyst(R) 1400, have experienced decelerating growth rates. Sales to international customers declined to 41.8% in the third quarter of 1998, from 49.6% for the third quarter of 1997. International sales in the first nine months of 1998 were 40.9% of net sales compared with 48.7% of net sales for the same period in 1997. The decrease reflects slower sales in international markets, particularly certain countries in Asia. The Company anticipates that sales in Asia will remain weak for the foreseeable future. Sales growth in these markets has generally been impacted by a variety of factors including weaker economic conditions, delayed government spending, a stronger dollar versus the local currencies, and slower adoption of networking technologies.