Zeev's Turnips Patch-No Politics (ZEEV)

[langostino]

Not true mogul

Well ... in the generic it's certainly true that rising inventories are a must in order to meet rising backlog and higher sequential seasonal demand .... IF that's what you have.

But order backlogs for Cisco FELL from $2.0 billion to $1.9 billion.

The rationale Cisco gave for rising inventories is that it's cutting its the length of its supply chain delivery time by that amount (5%), so the backlog remains proportional in equivalent terms -- i.e. no drop in end-demand.

Whether you buy that or not ... that's a judgment call.

I think the reaction here is severely overdone as much of telecom and telecom-related semis are getting whacked in pre-market (i.e. SSB came out and downgraded Cypress Semi - nice job penguin morons!!)