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

To: Howard Feinstein who wrote (21549)	2/2/1999 11:29:00 AM
From: At-a-boy	Read Replies (3) \| Respond to of 77397

It will not be a blowout, in fact CSCO barely made this quarter... Pulled it out of their you know what! There will be a sell-off! DW

To: Howard Feinstein who wrote (21549)	2/2/1999 11:37:00 AM
From: Wanderer	Read Replies (1) \| Respond to of 77397

Year 2000 (that's July of 2000)earnings estimates are around $1.85. Say they beat that and come in at $2.00. At today's price that's a P/E of over 55 which is about the right number for a quality growth company of Cisco's caliber. Unfortunately that's one and half years from now. Seems the market has too much money chasing to few quality growth companies. Throw into that the internet mania and you have a very pricey proposition. I'm a longterm Cisco holder (over 5 years) and have a long term view. I just hope the people buying now also have a long term view as the stock seems to be way ahead of itself at this point.

To: Howard Feinstein who wrote (21549)	2/3/1999 6:53:00 AM
From: Zoltan!	Read Replies (1) \| Respond to of 77397

February 3, 1999 Tech Center Cisco's Strong Revenue Growth Sends Quarterly Earnings up 33% By SCOTT THURM Staff Reporter of THE WALL STREET JOURNAL Even as it grows larger, data-networking powerhouse Cisco Systems Inc. is growing faster. The company, which makes the machines that direct traffic on the Internet, slightly exceeded analysts' expectations for second-quarter earnings, as revenue grew by 40%. Cisco, San Jose, Calif., said it earned $288 million, or 17 cents a diluted share, for the quarter ending Jan. 23, down 37% from net income of $457 million, or 29 cents a share, in the same period a year earlier. Excluding one-time charges related to four acquisitions, Cisco said it would have earned $606 million, or 36 cents a share, a 33% increase from the year-ago period. Analysts had expected operating earnings of 35 cents a share, according to a survey by First Call. Revenue for the quarter increased 40% to $2.83 billion from $2.02 billion in the year-earlier period. It was the fourth consecutive quarter in which Cisco's annual growth rate increased, even as the company prepares to exceed $10 billion in annual sales. John Chambers, Cisco's president and chief executive officer, said in an interview that the company can continue to grow 30% to 50% a year for at least the next three years. "We have never been better positioned to lead in the Internet economy," he told securities analysts. Cisco introduced 13 new products in its fiscal second quarter, more than any other quarter in its history, Mr. Chambers said. Still, he pointed to global economic uncertainty, increased competition and a traditionally difficult third fiscal quarter, which ends in April. But analysts said they heard little to damp expectations. Analysts said Cisco's growth has accelerated because the company is expanding its already dominant market share in networking equipment at large companies, while making inroads at traditional telephone companies. Cisco's rapid growth "is likely to continue for a while," said Chris Stix of SG Cowen Securities. "They're just getting started" with telephone companies. MCI WorldCom Inc., Sprint Corp. and Swisscom AG all have announced plans to use Cisco equipment in recent months. Cisco announced its results after stock markets closed. In Nasdaq Stock Market trading Tuesday, Cisco shares fell $2.609 to $112.391 amid a broad sell-off in technology stocks. In after-hours trading, they continued falling to $109, according to Instinet. Still, Cisco shares have more than doubled in the past four months, giving the company a market value of approximately $175 billion. Cisco controls two-thirds of the market for the machines that route traffic on the Internet, roughly five times the market share of its closest competitor. With little competition in several key markets, Cisco maintained a gross margin of 65% in the second quarter, unchanged from a year earlier. These days, Cisco is moving aggressively to recast its offerings to carry voice signals and video as well as data. The move increasingly will bring it into conflict with traditional makers of telephone-switching equipment such as Lucent Technologies Inc. and Northern Telecom Ltd., both of which have fortified their computer-networking offerings in the past year by buying Cisco rivals. But Cisco says it remains undaunted. "We continue to believe most major acquisitions will fail," Executive Vice President Don Listwin told securities analysts Tuesday. Cisco has been busy acquiring companies as well, but most of its acquisitions are small companies. Cisco completed four acquisitions during the quarter: Summa Four Inc., Clarity Wireless Corp., Selsius Systems Inc. and PipeLinks Inc. for a combined $537 million. All told, Cisco acquired nine companies last year and has said it will continue buying small companies with promising technologies. Cisco took a one-time charge of $349 million, or 19 cents a share, in the quarter, associated with those acquisitions. wsj.com