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To: Ashley Campbell who wrote (56901)	11/6/1998 8:01:00 PM
From: Immi	Respond to of 61433

Technology News Fri, 6 Nov 1998, 7:54pm EST Cisco's Telecom Sales Growth Accelerating, CEO Chambers Says Cisco's Telecom Sales Growth Accelerating, CEO Chambers Says San Jose, California, Nov. 6 (Bloomberg) -- Cisco Systems Inc. Chief Executive John Chambers said he expects sales of the company's computer-networking equipment to phone companies will grow at least 50 percent annually, more than previously expected. ''We've been surprised somewhat by our success'' in the telecommunications market, Chambers told a group of investors and analysts at the company's annual investor conference in San Francisco late Thursday. Cisco, the top networking-equipment maker, has been looking to sell more gear to phone companies as sales growth to the corporate market slows. Cisco is racing against large phone equipment makers such as Lucent Technologies Inc. and Northern Telecom Ltd. that are pushing into data networking. ''They're better positioned than anyone right now, including Lucent,'' in the market for networking equipment sold to phone companies, said Esmerelda Silva, an analyst at market researcher International Data Corp. in Framingham, Massachusetts. The company doesn't release a detailed breakdown of sales figures. Analyst estimate telecommunications sales contributed about 20 percent to 25 percent of Cisco's fiscal first-quarter revenue of $2.59 billion. Executive Vice President Don Listwin told analysts that the company has sold about 1,000 of its GSR 12000 products in the past 18 months. That product, which usually sells for about $200,000 to $300,000, is used by Internet service providers to route data communications on their networks. Chambers has said previously he expects sales to telecommunications service providers to contribute more than half of the company's revenue by 2002. Yet that may happen sooner than expected, depending on the growth rate of the enterprise market, how fast phone companies expand their data networks and how worldwide economic turmoil affects spending on communications equipment, Chambers said. © Copyright 1998, Bloomberg L.P. All Rights Reserved.