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Wednesday, February 3, 1999

"Do not seek to follow in the footsteps of the men of old; seek what they sought." -- Matsuo Basho

Latest Market Numbers

Strong Growth at Cisco

Internet networking giant Cisco Systems (Nasdaq: CSCO) reported fiscal second quarter results after the bell yesterday, posting earnings of $0.36 a share (before charges) compared with last year's $0.29. That was a penny ahead of the First Call analysts' mean estimate. Including the effect of merger-related write-offs of in-process R&D (research and development), Cisco netted $0.17 a share during the quarter. Revenues increased 40% to $2.83 billion, the highest growth in seven quarters.

In an interview with The Wall Street Journal, Cisco President and CEO John Chambers said the company can continue to grow 30% to 50% a year for at least the next three years. The company launched 13 new products during its fiscal second quarter, more than any previous quarter and equal to the number the company usually introduces in an entire year. Sales to telecommunications companies, which rose more than 50% from the year before, offset slowing corporate sales.

During Cisco's Q2 conference call, the company said it had a good balance across all of its lines of business with each reporting year-over-year bookings growth in excess of 30%. About 73% of its sales are now done over the Internet. In the next 12 to 18 months, Cisco said its biggest concerns involve global economics, competition and industry consolidation, government regulation of the Internet, and the Year 2000 problem. (The company doesn't expect any huge problems resulting from Y2K and has no plans to change its operating strategy. However, it anticipates slightly lower expenditures by corporate customers as they spend more to the address Y2K.)

To listen to a full replay of the conference call, click here.

Earnings to Go

Incyte Pharmaceuticals (Nasdaq: INCY) -- Q4 EPS: $0.23 (before charges) vs. $0.17 last year; estimate: $0.20
Knoll Inc. (NYSE: KNL) -- Q4 EPS: $0.55 vs. $0.42 last year; estimate: $0.51
La-Z-Boy (NYSE: LZB) -- fiscal Q3 EPS: $0.33 vs. $0.21 last year; estimate: $0.25
Linens 'n Things (NYSE: LIN) -- Q4 EPS: $0.56 vs. $0.42 last year; estimate: $0.54
Ocular Sciences (Nasdaq: OCLR) -- Q4 EPS: $0.37 vs. $0.31 last year; estimate: $0.35
Qwest Communications (Nasdaq: QWST) -- Q4 EPS: $0.03 (before charges) vs. $0.06 last year; estimate: $0.02
Reebok (NYSE: RBK) -- Q4 EPS: loss of $0.13 (from operations) vs. profit of $0.32 last year; estimate: loss of $0.14
Time Warner (NYSE: TWX) -- Q4 EPS: loss of $0.17 vs. profit of $0.14 last year; estimate: loss of $0.19

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Yi-Hsin Chang (TMF Puck), Writer
Jennifer Silber (TMF Amused), Editor