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2005, November 18th -


Cisco Systems Inc (CSCO) agrees to acquire Scientific Atlanta (SFA, 42.1***) for about $6.9B;
expect financing via cash and debt. We view the purchase price of Scientifc Atlanta, at about 20X our FY 06 (June) EPS estimate for SFA, adjusting for $10 in cash/share, as attractive.

CSCO sees the deal neutral to its FY 06 (July) EPS and slightly accretive to FY 07's.
While SFA sales growth and gross margins are below CSCO's
advanced technologies segment average, we see SFA's video convergence expertise helping to
pull through additional network transport demand, especially in attractive IPTV and
video-on-demand markets.

- A.Bensinger
11/18/2005 11:18:50

Source: S&P Stars
View: PDF (45 KB)

Feb 21, 2005:



Feb. 15, 2005:

Here's a new rule for web publishing. Anytime you write an article, or make a web page, you datestamp it with the day you first published it, and the last time you updated it.

I am so tired of looking at articles, technical papers, opinion pieces, etc., published on the web, that don't have a date.

You don't know if it was written in the 90's, or last week. Come on people: you know how to sign your articles (e.g. "By Jennifer Kyrnin"), how hard is it to date them? (e.g. "By Jennifer Kyrnin; 2005 Feb 15") .

2005, February 8th -

John Chambers Announces 2nd Quarter Fiscal Year 2005 Financial Results for Cisco Systems, Inc.

-- 2nd Quarter Net SALES (revenue): $6.1 billion
(12.3% increase year over year; 1.5% increase quarter over quarter)

-- 2nd Quarter Net INCOME (earnings): $1.40 billion .........GAAP; $1.5 billion pro forma

-- 2nd Quarter Earnings Per Share: $0.21 ......GAAP; $0.22 pro forma

"posting our eleventh consecutive quarter of pro forma net income exceeding $1B . . ."

" our pro forma profits exceeding 20% of revenue. "

"Cash flow from operations was a solid $1.8B. During the quarter we repurchased $2.7B of common stock and exited the quarter with approximately $17B in cash, cash equivalents, and marketable investments. "

product orders grew 12% year over year.
10 to 15% year-over-year growth.

Networked Home and IP Telephony : possible $1B in sales...


JMP Securities analyst Sam Wilson, characterized the results ($1,400,000,000 in profit over the last 3 months) as "mediocre."

By way of comparison, Microsoft had an operating INCOME for the second quarter of $4.75 billion (which was an increase of $3.27 billion over the same period in the prior year.) IBM had an INCOME of $3.10 billion for their last quarter.

What's the difference between "Sales" and "Revenue"?
A: Gross income is listed as revenue for service companies and as sales for manufacturing companies.

Gross income is commonly defined as all the money, goods, and property received by the company that must be included as taxable income.

Net income, or merely "income", is income after outlays are deducted.
Synonyms: earnings, lucre, net, net profit, profit, profits.

So "Sales" is revenue, but "Income" is profit.

(sometimes also referred to as "Sales Revenue" = Price x Quantity ;

for reporting purposes, "Sales Revenue" is Gross Revenue (the amount customers actually pay the company when they make their purchases) minus allowances for products expected to be returned, lost in delivery, or otherwise requiring the company to refund the customers' money.)

Revenue = Sales ;
Sales Revenue = ( Gross Revenue- Refunded Monies)

May 24, 2005:

May 2005 was a very good month for Cisco Systems. . .



January 24th, 2005:


If your investment outlook is at least one year, there's lots of good value out there right now. There's been a corrective dip since the beginning of the year, making some big-name stocks real values:

Cisco (CSCO) has dropped to 17.75 !! [52-week high: 28.50]

Pfizer (PFE), after some recent bad press,
is finally buyable again at around 24.26
[52-week high: 38.89](3.1% dividend yield too)

Microsoft (MSFT) at 25.67 ? Now that's a bargain! [52-week high: 30.20]

These techs offer you more short-term risk, but much better reward. These may not bust out tomorrow, or next month, but when they move, they'll really move:

NVIDIA (NVDA) : down 4% today to 20.58. [52-week high: 27.35]

Intel [INTC] has been out of favor over the last year, but they've got a strong future (Remember the golden rule: buy low, sell high) currently 21.99.

Western Digital [WDC] has an upside potential of $14 (or better). That would be a 39% increase from its current price of 10.10 !

Got a long term perspective? So do the Japanese. Sony [SNE] is the future.
(PSPs and Play Station 3s for everyone!)
Had a nice little dip starting last Thrusday. Currently: 36.60

blog archive 2005.1 (Dec 2004, Jan 2005)

blog archive 2004
blog archive 2001 - 2003

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