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Optical/IP

Cisco: We're Not Talking

NEW YORK -- Cisco Systems Inc. (Nasdaq: CSCO) spoke to investors at the CIBC World Markets communications conference here today, but the talk left many attendees wanting more.

“You have to have some sympathy for Cisco,” says Stephen Kamman, executive director with CIBC. “When they sneeze the whole world gets a cold, so they have to be very careful about what they say in public.”

Jayshree Ullal, a vice president at Cisco, played to a packed house. But by the time she started rehashing the demise of the old packet-centric network and the rise of data in carrier networks, several people in the audience had already buried their noses deep in the Wall Street Journal. Others yawned as she then launched into a list of current Cisco product offerings.

“Let’s just say I didn’t learn anything new from this,” said one investor after the presentation, asking to remain unnamed. “But it was bland for a reason. I’m sure John Chambers would have had her head if she said anything material.”

Unlike executives from Foundry Networks Inc. (Nasdaq: FDRY) and Extreme Networks Inc. (Nasdaq: EXTR), who presented at the conference yesterday, Ullal did not indicate that spending has picked up in the current quarter (see Extreme, Foundry Get Happy ). In fact, she seemed to avoid questions on the issue and only gave investors vague answers regarding the length of the sales cycle.

Even though she was not willing to give specifics, Ullal was still optimistic about the long-term prospects for the company, and she highlighted some markets where she expects future growth -- namely, optical networking in the metro area, edge routing, and storage area networking.

“Carrier spending trends haven’t gotten worse, but they haven’t gotten a whole lot better, either,” she said. “The opportunity remains large, even though we don’t have much visibility into the marketplace right now.”

While Ullal said there would be tremendous growth in edge routing, she seemed to downplay the core routing opportunity. This is not surprising, considering that the company has consistently lost market share to Juniper Networks Inc. (Nasdaq: JNPR) over the past year, said CIBC’s Kamman.

“Cisco seems to be emphasizing the edge router market, where they are stronger,” said Kamman. “I think that is the correct thing for them to do.” Nevertheless, he disagrees with Ullal about the market potential in the core:

“I think the core router market is going to come back, simply because volume on the demand side is growing tremendously. And once broadband gains critical mass in the consumer market, we’ll see a huge need for core routing equipment.”

Cisco was trading down 0.97 (4.76%) at $19.40 a share in midday trading.

- Marguerite Reardon, Senior Editor, Light Reading
http://www.lightreading.com

dumbo 12/4/2012 | 8:14:58 PM
re: Cisco: We're Not Talking Heard there is going to another round of layoffs at Cisco Systems...
gladysnight 12/4/2012 | 8:14:55 PM
re: Cisco: We're Not Talking Sheesh!

Only an "analyst" (read pump and dump whore) could have sympathy for a company with 4 Billion in cash, a lock on the enterprise market and mindshare, and a fairly adroit management team.

Must be crying rivers over the rest of the industry . . . .
red1969a 12/4/2012 | 8:14:53 PM
re: Cisco: We're Not Talking Are these the same Analsyts that had JNPR to go to $60 and then changes its mind to $30 after its announcement.
BTW Lightreading, Did you actually attend the meeting or is it the same source that gave you
the M320 release story. Yawn.
photonic 12/4/2012 | 8:14:49 PM
re: Cisco: We're Not Talking
These guys at lightreading can never seem to get enough of bashing the big three: CSCO, NT, and LU. Their darlings, read JNPR, SCMR, and RBAK, are having similar, if not worse troubles, and these guys still seem to write tens of articles on the big three.

Last week when JNPR warned lightreading blamed the core slowdown. When SCMR warned they blamed the core slowdown. When the big three warn, its the end of the world for them. Give me a big damn break. These companies still have billions in revenue. What do the small guys have to show for???

Wait for a warning for SCMR. I bet their revenue will be below $40 million this quarter.

Lighreading editors are a bunch of immature college kids who know nothing about running a big business but yet claim they can change the world.

NoObjectivity 12/4/2012 | 8:14:47 PM
re: Cisco: We're Not Talking Tell me something new.

It's all in the advertising. These guys are more transparent than a window on the advertising front.
red1969a 12/4/2012 | 8:14:44 PM
re: Cisco: We're Not Talking Looks like somebody at Juniper is selling too - is this is a story ;-)

17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services * 102,000
JNPR Gave as Gift.
Value of $5,188,740.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services 29,924
JNPR Acquired Shares via Exercise of Options at $1.65/Share.
Paper gain of $1,472,859 at a fair market value of $50.87/share on 17-Apr-01.
17-Apr-01 STENSRUD TRUST
Trust, Trustee 60,000
JNPR Proposed Sale (Form 144).
Estimated proceeds of $3,052,200.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services * 7,539
JNPR Sold at $50.03/Share.
Proceeds of $377,176.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services 29,924
JNPR Sold at $50.26/Share.
Proceeds of $1,503,980.
17-Apr-01 STENSRUD, WILLIAM R
Director * 25,000
JNPR Sold at $50.28 -- $50.79/Share.
Proceeds of $1,259,550.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services * 50,000
JNPR Gave as Gift.
Value of $2,543,500.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services * 150,000
JNPR Sold at $46.81/Share.
Proceeds of $7,021,500.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services * 30,000
JNPR Sold at $50.00/Share.
Proceeds of $1,500,000.
17-Apr-01 HALEY, STEVEN R
Divisional Officer, Vice President, Worldwide Sales, Services * 152,000
JNPR Received as Gift at $50.87/Share.
Value of $7,732,240.
NoObjectivity 12/4/2012 | 8:14:42 PM
re: Cisco: We're Not Talking No, this is not a story, because it is not about Lucent, Nortel or Cisco going to Hell in a Handbasket.

Stop bothering us,

Light Reading
red1969a 12/4/2012 | 8:14:41 PM
re: Cisco: We're Not Talking Your Right,
I apologise, guess this is not the right time to post Scotts sold options. Check out the $24 Mil!!!
;)


19-Apr-01 KRIENS, SCOTT G
President, Chief Executive Officer, Director * 100,000
JNPR Sold at $62.25/Share.
Proceeds of $6,225,000.
19-Apr-01 KRIENS, SCOTT G
President, Chief Executive Officer, Director * 310,000
JNPR Sold at $60.54 -- $62.76/Share.
Proceeds of $19,083,591.
19-Apr-01 KRIENS TRUST
Shareholder 400,000
JNPR Proposed Sale (Form 144).
Estimated proceeds of $24,500,000.
19-Apr-01 KRIENS FOUNDATION
Chief Executive Officer 10,000
JNPR Proposed Sale (Form 144).
Estimated proceeds of $62,000.
z2000 12/4/2012 | 8:14:07 PM
re: Cisco: We're Not Talking hmmm...
we are not talking &
not much to report

LOL
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