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

To: lkj who wrote (25683)	5/14/1999 8:50:00 AM
From: Zoltan!	Read Replies (1) \| Respond to of 77398

You are wrong. Cisco exceeded expectations in every measure. Cisco's top line growth in sales and earnings will continue to far outstrip LU's for years to come. LU pumps earnings by cutting its sizable overhead - it is a far less efficient company than Cisco, LU's legacy as a utility. Very good news is that Cisco has already taken the lead away from ASND in supplying remote access gear and now leads in market share in that fast growing area - a trend that shall accelerate.

To: lkj who wrote (25683)	5/14/1999 9:17:00 AM
From: jach	Read Replies (2) \| Respond to of 77398

<Cisco's margin has only one direction to go, and that is DOWN.> absolutely, with so many companies coming into play (from startups to big gorillas) how can one still maintain this kind of margin. Guess what will happen when the margin for CSCO drops to the average range of what LU and IBM are getting ?? For LU, it'll be no problem as they're already comfortable with this type of margin. CSCO is getting these margins only because of historical monopoly on Router mkt (and this is not because of one is so good, the only reson was that the big gorillas left CSCO alone in this arcance mkt before as the forest is so small). This factor is dissapearing as we've seen from the many startups getting share from CSCO in GBit and high-speed switch-router segments, as well as LU and NT getting significant data share. Therefore, common sense said, when the margin goes down the stock will very quickly follow in a downward spiral too. All imo.

To: lkj who wrote (25683)	5/18/1999 3:29:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77398

Hey lkj, I can see your point. You are concerned that Cisco's expenses are growing faster than their revenues, while Lucent has the opposite going on. Let me tell you why this makes sense and why this is a good thing for Cisco, not a bad thing. After Lucent was spun off, it had a lot of fat. To this day they are still finding efficiencies in cutting costs. Lucent is a terrific company and has an excellent and large customer service organization. They are equiped to handle growth if they can get the new products out there fast enough to satisfy their existing customers. Cisco on the other hand is a very small company by comparison (if you look at # of employees). Cisco simply MUST expand the company in order to handle the growth it expects to have over the next several years. So what we have seen is a large growth in # of employees over the past year. This is largely why expenses are rising faster than revenues. The way to look at it is that Cisco is investing in their future by investing in people and customer service. Now if revenue growth slows down signigicantly, then maybe we all need to get worried. But right now, there is nothing substantial to worry about.