Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jach who wrote (23531)	3/8/1999 10:22:00 AM
From: puborectalis	Respond to of 77398

Why don't you move on with your negative vibes.....don't you know a growth company when you see one?

To: jach who wrote (23531)	3/8/1999 10:26:00 AM
From: Zoltan!	Respond to of 77398

FORE will be a casualty of any competition for Cisco. If you knew anything about business competition you would know that weak sisters like FORE are the ultimate victims when titans clash. The best that FORE can hope for is to be bought by another now that the better companies have already been taken. Too bad FORE is too pricey now to justify such action. FORE looks better at a realistic $7/sh or below. That's the eventuality. Just like you being the ultimate victim of your mindless (and seemingly endless) sophistry.

To: jach who wrote (23531)	3/8/1999 1:35:00 PM
From: Eric	Respond to of 77398

Sadly your opinion isn't worth much here. I'd sell Fore before it gets acquired. They should disappear in the next year. Looks like they will be bought out.

To: jach who wrote (23531)	3/13/1999 12:43:00 PM
From: jach	Read Replies (3) \| Respond to of 77398

These numbers indicate margins are in fact going to suffer, not good for CSCO in the long run. IMO, a revenue slow down like ORCL can potentially cut its price by 30$ in one day. Sales and Mkt increased to 20% from 17.9%. That's a big jump. From two recent 10Q reports -------------- extract from March 10Q Sales and marketing expenses increased by $207 million in the second quarter of 1999 over the second quarter of 1998, and increased $387 million in the first six months of 1999 over the first six months of 1998. This represents an increase from 18.0% to 20.2% of net sales for the quarter to quarter period and from 17.9% to 20.0% for the first six months of each fiscal year. The increase is due principally to an increase in the size of the Company's direct sales force and its commissions, additional marketing and advertising costs associated with the introduction of new products and the expansion of distribution channels. The increase also reflects the Company's efforts to invest in certain key areas such as expansion of its end-to-end strategy and service provider coverage in order to position itself to take advantage of future market opportunities. ------------ extract from last December 10Q Sales and marketing expenses increased by $180 million in the first quarter of 1999 over the first quarter of 1998, an increase to 19.9% from 17.9% of net sales. The increase is due principally to an increase in the size of the Company's direct sales force and its commissions, additional marketing and advertising costs associated with the introduction of new products and the expansion of distribution channels. The increase also reflects the Company's efforts to invest in certain key areas such as expansion of its end-to-end strategy and service provider coverage in order to position itself to take advantage of future market opportunities.

To: jach who wrote (23531)	3/13/1999 1:04:00 PM
From: jach	Read Replies (3) \| Respond to of 77398

Competitions coming on strong in GBit ethernet. Look at recent Lucent's addition. Very low prices that will reduce profits for everyone. Remember the disk drives and memory price wars, it's now coming soon to the networking arena. IMO, csco would be hard pressed to maintain its margins. ----------------- Gigabit Ethernet On A Tear, Study Reports (03/09/99, 4:36 p.m. ET) By John Fontana, InternetWeek IT managers with a need for high-performance LANs are gobbling up Gigabit Ethernet and are likely to use it at every level of the network, according to a new study released Tuesday. For IT managers with centralized server farms and a growing number of 100-megabit-per-second desktops, the technology is fast becoming a requirement. With the advent of the convergence of voice and data on a single network, the fatter pipe will become a necessity. With that in mind, the major vendors are scrambling to add Gigabit Ethernet ports up and down their product lines. "There is no doubt Gigabit Ethernet is taking off, and by the end of this year and into 2000, it will be at all levels of the network," said Mike McConnell, an analyst with Infonetics Research, "even at the desktop for a small number of users." According to a study released Tuesday by Infonetics called "User Plans for High Performance LANs 1999," Gigabit Ethernet will make up 8 percent of ports in the enterprise backbone and 4 percent of the ports in server farms by November 2000. "From zero to 8 percent in about 18 months is pretty significant," said McConnell. The study showed Gigabit Ethernet is on a rocket ride through the enterprise and is blowing away ATM as the technology of choice for backbones and servers. Pricing also is playing a part. Layer 3 Gigabit Ethernet ports have dropped $200 in the past quarter to $1,700; port shipments climbed 153 percent between the third and fourth quarters of last year, according to Cahners In-Stat Group. It is into that environment vendors are rushing to emphasize Gigabit Ethernet support from top to bottom; this includes recent announcements from Cisco, Nortel Networks, 3Com, and Alcatel/Xylan. "I think it's a wise move for these vendors to add Gigabit Ethernet ports," said McConnell. Meanwhile, Lucent completed on Tuesday Gigabit Ethernet support for its Cajun line of LAN switches it announced in October. The Murray Hill, N.J.-based company added a new switch to its workgroup P110 line and modules for its M400 and M770 switches that provide multiple Gigabit Ethernet ports. Lucent's new stackable P118 has two Gigabit Ethernet ports and eight 10/100 ports. Four of the units can be stacked together or can be combined with other switches in the P110 line that include ATM interfaces, high-density 10/100 ports, or all fiber 100-Mbps ports. The P118 supports 802.1p prioritization and 802.1Q VLANs and Lucent's Open Trunk link aggregation. It also supports SNMP and Lucent's Switch Monitoring. The LGE-2000 module for the M400, a chassis-based switch that integrates Ethernet, FDDI, and ATM, has one Gigabit Ethernet port and one redundant port. The M2-1000 for the M770, a large format switch that integrates ATM and Ethernet, has two Gigabit Ethernet ports and six 10/100 ports. "It's a necessary condition for quality of service and voice and data integration to have enough capacity, and Gigabit Ethernet gives us those fat pipes," said Doug Ruby, vice president of product marketing for Lucent's LAN switching group. Lucent's new products are available now. The P118 pricing is $3,995 for short wavelength and $5,495 for long wavelength. The LGE-2000 is $4,995 (short) and $6,495 (long). The M2-1000 is $9,995 (short) and $11,995 (long).