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

To: RetiredNow who wrote (24627)	4/26/1999 6:54:00 AM
From: Dragonfly	Read Replies (1) \| Respond to of 77397

mindmeld- I have no reason to doubt you. I'm impressed that Ciscos' margins are %65. I suspect, though, that we are looking at numbers that are calculated differently. For Cisco, a large amount of the product is IP and software, but they have to spend real money on hardware. For Microsoft, the product is completely software, and they pay almost nothing for manufacturing. However, it could be that Microsoft has to pay a lot more for marketing than Cisco and that's why their margin is less.... but I think Cisco's are going to be harder to maintain because they have a higher fixed cost per unit. On the other hand, there's not much to stop Cisco from becoming more of a software company (services and software for the comm. infrastructure) and thereby preserve margins. This would play well with the "box" business and help growth. Dragonfly