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

To: Tulvio Durand who wrote (15869)	8/7/1998 5:39:00 PM
From: Zoltan!	Respond to of 77400

Dow Jones Newswires -- August 7, 1998 Cisco Upbeat On Stratacom, Looks Towards New Competition By Mark Boslet SANTA CLARA, Calif. (Dow Jones)--Cisco Systems Inc. (CSCO) gave an upbeat outlook toward growth at its Stratacom division, as it continued shaping its marketing messaging for the coming competition with telecommunications-equipment companies. Speaking at the Networking Connections Conference here, Chief Executive John Chambers said he was optimistic that growth at Stratacom would be faster this year than the 50% growth of the past year. Cisco's fiscal year ends in July. Stratacom has new products, and service providers may latch on to the "end-to-end" concept of seeking a full range of products from a single provider, Chambers said. Alfred Tobia, a Nationsbanc Montgomery Securities analyst, said one key new product is the TGX 8750, an ATM switch the company introduced in June. Preparing for competition with telecom-equipment companies, Cisco will define itself as synonymous with the Internet, Chambers said. "The Internet is driving the new economy," he said. Cisco will also seek to remain agile - and to keep employee productivity high - as new opportunities emerge in the coming convergence of voice and data networks, he said. Chambers went on to say Wall Street assumes the large producers of equipment for today's voice networks, such as Lucent Technologies Inc. (LU), will acquire companies with data technology and make the acquisitions work. But the majority of acquisitions fail, he said. Farrokh Billimoria, an analyst at Hambrech & Quist, said the company is obviously working hard to position itself against competition from telecommunications-equipment providers interested in entering the data market, such as Northern Telecom Ltd. (NT), which plans to purchase Bay Networks Inc. (BAY). This is Cisco on the offense, Billamoria said. interactive2.wsj.com

To: Tulvio Durand who wrote (15869)	8/7/1998 8:53:00 PM
From: Bura	Respond to of 77400

The WSJ and the press always use the actual EPS (ie including write-offs for acquisitions) in their calculations. So the PE is higher since the EPS figures they use are lower. You'll also notice that a lot of people who write business articles (not necessarily just WSJ) use the actual EPS when discussing a quarter. None of the analysts or real investors care since actual EPS are bogus. Look at Cisco 97 Q4 for example, CSCO "earned" .15 when it reality they earned .38 since they completed 3 acquisitions in 97 Q4. Prior to this earnings report, supposedly CSCO's PE based on the nonadjusted earnings was over 100. It's usually a sign of a weak article when someone takes a PE ratio from a stock table. The "true" trailing PE is now 55.7