Tuesday, November 09, 2004
CDWC reported monthly sales for October of $498M , which is above expectations. The sales grew 11.2% over last year and were down 5.4% from September. It could mean two things: either CDWC is gaining share from IM especially in large corporate sector or that the overall IT spending is improving into year-end. I would lean towards the latter. Both IM and CDWC are large channels for CSCO products, which could mean that the month of October was better than expected for CSCO. This uptrend in October could make management have a slightly positive tone. CDWC press release also stated that both SMB and public sector sales posted solid growth in October. Which means government spending did not fall of the cliff after government's fiscal year end in September, another positive. Its important not to take this one data-point out of context, but bias could be turning positive.