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Technology Stocks : Forecross Corporation : Y/2000 -- Ignore unavailable to you. Want to Upgrade?

To: Rick Voteau who wrote (1449)	10/6/1998 9:04:00 PM
From: Ruyi	Read Replies (1) \| Respond to of 1654

technology budgets are being readjusted for calendar 1999. Cowen surveyed 22 companies and saw over one-third of the 11 financial services companies responding to its survey changing IT investment projections, which isn't surprising given job cutbacks in money center banks and investment-related financial services companies. Given that these are data-intensive companies and that 75% of Cisco's revenues come from large customers with highly complex networking needs, slower sales of less complex products hurts margins. Cowen also recently published a report linking 30% of changes in networking industry spending to changes in developed economy growth rates. With Europe and the U.S. slowing, Cowen's direct work surveying enterprises and its channel checks that have shown some pushouts evidence a strong thesis. In addition to this, Y2K spending was also named as a possible reason for a change in IT spending, which is another highly plausible idea. Potholes in capital budgets could be seen in the upcoming year as marginal IT disbursements shift from capital budgets to Y2K spending.