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

To: jach who wrote (19017)	11/6/1998 2:18:00 AM
From: Eric	Read Replies (2) \| Respond to of 77400

They have been saying that for over two years and yet per employee revenue is going up!

To: jach who wrote (19017)	11/6/1998 3:17:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 77400

Eric wrote "Cisco's revenue per employee has been going up..." Jach replied "Not anymore, CSCO said that margins will go lower in the future." Jach, margin reductions would not affect revenue per employee. Revenue is synonymous with net sales, which can go up even if margins decrease. BTW, I'm not sure I accept the inevitability of Cisco's margins declining. I think they put that cautionary in as standard boiler plate, like "past performance is not a guarantee of future results". MSFT plays the same game with every earnings release. This was a tough quarter, and csco's margins only dipped 0.2% over the prior quarter on sales that were up by more than 8%.

To: jach who wrote (19017)	11/6/1998 8:34:00 AM
From: jach	Read Replies (2) \| Respond to of 77400

Most investors are still unaware of the drastic changes taking place in this market. When they actually start to realize the facts, it may be too late. What are these drastic changes: (1) This is the first time in CSCO's history that the large telecom companies are competing directly with CSCO in their own turf. LU PacketStar IP Router, LU PortMaster 4 RAC; NT with BAY and so on. Even INTC is going into the networking business by buying SHVA. Why, because the margin are still very good. Most busineses will love to get 40% margin, not to mention 60% margin that one can get in the high-end networking segment. (2) This is the first time in CSCO's history that so many well organized and technically competent startups are trying to steal mkt share. The GBit startups Extreme, Foundry, Alteon, etc. have already stole some market away from CSCO. Next year, the high-end IP switch router startups (AVICI, NetCore, Pluris, Juniper) will likely do the same. (3) This is the first time in CSCO's history that large European telecom companies such as Alcatel, Erisson are competing directly with CSCO. In Europe, it will be very tough for CSCO to compete with them (4) This is the fisrt time in CSCO's history that ASIA is so much in trouble. So, based on these facts, imho, it's very likely that CSCO is going to be in tough times ahead. Possible that more downgrades will come.