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

To: RetiredNow who wrote (23559)	3/10/1999 8:08:00 AM
From: John Carragher	Read Replies (2) \| Respond to of 77400

Cisco Warns of Shrinking Margin Cisco Systems Inc., the leading manufacturer of computer-networking equipment, warned in a U.S. Securities and Exchange Commission filing that its gross profit margin will shrink and its research and development expenses to rise quicker than sales. Cisco expects its gross margin to continue to decrease because the market for lower-margin remote-access and switching products for small to medium-sized businesses, which Cisco doesn't specialize in, is growing faster than the market for Cisco's higher-margin router and high-performance switching products for big companies and Internet-service providers. The company also warned that competitive pressure from large telecommunications-equipment suppliers and well-funded startup companies, as well as an increase in the price of components, could also hurt its profit margin. In addition, its R&D expenses are expected to grow more quickly than its sales "as the company invests in technology to address potential market opportunities."