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Mark Lipacis
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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.
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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.
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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.
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