Cisco management indicated that it believed that there would be little to no market for its excess inventory in secondary market because there is already an oversupply of components. |
We continue to believe that inventory levels in the channel are as much as 60 percent higher than historical levels. We are modeling revenues to decline on a sequential basis in the March and June quarters, with a mild pickup in top line growth starting in the September quarter. |
We continue to believe that most of the communications [chip] companies will either have to preannounce disappointing results, or lower expectations during the June quarter reporting season. |