SUSIE GHARIB: A major restructuring at Cisco Systems. After the market closed today, Cisco announced a new business structure. It's dividing the company into 11 technology groups. Currently it has just three. It also created a new position: chief development officer. Cisco Chief Executive John Chambers reiterated today that the company's fiscal first quarter sales will be flat to down 5 percent, but added "our business is stabilizing." A short while ago, I spoke with Cisco analyst Nikos Theodosopoulos of UBS Warburg, and began by asking him what all the changes mean for Cisco.

NIKOS THEODOSOPOULOS, TELECOM ANALYST, UBS WARBURG: Well, I think what it means is that Cisco is trying to better utilize their internal development, product development so that products that are cared for the enterprise market and the service provider market, they can share resources.So I see it as better leverage of R&D resources.

GHARIB: Will this in any way help the bottom line at Cisco?

THEODOSOPOULOS: It should in that if they'd better leveraged the R&D resources, they will reduce duplication. So I think that's the way to look at this. It's an effort to better utilize the internal development resources across all the products that Cisco is working on.

GHARIB: Why is this happening now, Nikos? Why the announcement today?

THEODOSOPOULOS: Well, we are entering a new fiscal year for Cisco. Remember, their fiscal year ends in July. So this is the time to be doing steps like this as you plan for the next year.

GHARIB: But it hasn't been, the Cisco doesn't do these kinds of reorganizations that frequently. I think the last one was a couple of years ago. Is there anything meaningful about the timing right now?

THEODOSOPOULOS: Well, the timing in the sense that we are seeing a major industry downturn. We are seeing Cisco already earlier in the year taking a restructuring and a downsizing and now that they've got the company sized to what they think is proper, this would make sense in terms of doing it at this point.

GHARIB: Nikos, Chief Executive John Chambers said today that he sees signs that the business is stabilizing. What's your view?

THEODOSOPOULOS: Well, that has been our view. We upgraded the stock a month or so ago with the aame feeling that we've seen business at Cisco's enterprise market in the United States stabilize. So we think that this is, you know, confirmation of what we saw when we upgraded the stock.

GHARIB: Chambers also said today that he reiterated his guidance, that sales will still be flat for its fiscal first quarter, maybe slightly down. So when are we going to see the turn around in the marketplace and at Cisco?

THEODOSOPOULOS: We expect Cisco to show up sequential revenues in the January quarter. As once again, Cisco derives 70 percent of their business to Fortune 1000 or enterprise type companies and 30 percent of their business to telecomm operators. We don't see the telecomm operator business turning around probably until 2003.

GHARIB: What about the stock? So you said you upgraded it. The stock was up in after hours trading but long-term do you see Cisco getting back to the levels that we saw about a year ago?

THEODOSOPOULOS: No, we don't see the stock going back to those levels. We have a year, a 12-month price target of $24. So that's kind of the range we're looking for.

GHARIB: OK. Nikos, thank you very much for talking to "NIGHTLY BUSINESS REPORT."

THEODOSOPOULOS: OK.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

PAUL KANGAS: Lucent was talking to analysts today in New York, reaffirming its goal of returning to profitability. But did those analysts like what they heard? Scott Gurvey reports.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Lucent executives told analysts the company is raising twice as much money as it will need to execute its recovery plan. They say Lucent will reach break-even in 2002 and return to profitability in March 2003. Its strategy will be to concentrate on the top 30 telecom carriers.

VOICE OF HENRY SCHACHT, CHAIRMAN & CEO, LUCENT: We will be the only one of the major companies to do that. But in doing that we will, even after being somewhat smaller, we'll be the largest provider of communications infrastructure to this set of customers.

GURVEY: Being somewhat smaller will mean the loss of half the company's workforce. There were 123,000 at the start of this year, and analysts say the profitability target will be hard to hit.

DAVID POWERS, TELECOM ANALYST, EDWARD JONES: That is going to be a close call, but there is room for them to hit those numbers because the way they define profitability for that specific issue is a lot different than what other people would look at on the actual earnings release itself.

GURVEY: Once CEO Henry Schacht meets that goal, analysts say he will probably confront another challenge: finding another successor.

ALEX HENDERSON, TELECOM ANALYST, SALOMON SMITH BARNEY: I think Henry's been around long enough to know how to do the painful and difficult restructuring actions while stabilizing company operations, which is the type of leadership you need at this juncture. Down the line I don't think, at the age of 67, I think that's how old he is, he's going to stay around that much longer.

GURVEY: Investors are still shell-shocked with the once high-flying Lucent now trading at $6.65 a share, but analysts see an end to the decline.

MIKE CRISTINZIANO, TELECOM ANALYST, GERARD KLAUER MATTISON: Lucent is kind of bounced off the bottom here, I would say. They were sliding down the slippery slope. Now, I think, as a stock it's going to be very stable here in the current range.

GURVEY: More bad news is expected. Lucent's leaders admitted today that the earnings for the current quarter will be what they called, "messy." Scott Gurvey, "NIGHTLY BUSINESS REPORT," New York.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

08/23/01: Prime Movers: Ben Cohen & Jerry Greenfield, Founders of Ben & Jerry's Ice Cream

SUSIE GHARIB: With flavors like "Phish Food" and "Chunky Monkey," Ben and Jerry's is a favorite among ice cream lovers everywhere. But the company's founders are as unique as the confections they create. Ben Cohen and Jerry Greenfield opened their first store more than 20 years ago in Burlington, Vermont. Now their ice cream is in hundreds of shops and supermarkets worldwide. But they don't own the company any more. Last year, Ben and Jerry's was bought by the Dutch conglomerate Unilever (U.N.). In tonight's prime mover segment, myprimetime.com's Donald van de Mark reports that the company's success was a surprise to everyone, including Ben and Jerry.

JERRY GREENFIELD, CO-FOUNDER, BEN & JERRY'S: Yes, you know, we're pretty shocked at what the company has accomplished. And as I've said many times, people who know us are even more shocked.

DONALD VAN DE MARK, MYPRIMETIME.COM: Jerry Greenfield and Ben Cohen are two aging hippies, a failed potter and a guy who couldn't get into medical school, but they both like to eat. So in 1978, they scraped up $12,000 and started churning.

BEN COHEN, CO-FOUNDER, BEN & JERRY'S: We ended up in Burlington, Vermont, which is a beautiful place. And there were no other ice cream parlors because the climate is so cold that nobody in their right mind would open up here. And we just, sort of, were making homemade ice cream in an old abandoned gas station, and trying to figure it out as we went along.

VAN DE MARK: The way they figured it out was as unorthodox as they are. Jerry made the ice cream but Ben would test all the new flavors because Ben has hardly any sense of smell.

GREENFIELD: He was in charge for making ice cream, and for him to give me a taste of it, and I was supposed to be able to tell what flavor it was with my eyes closed, and usually I could never tell. He kept making me put in these bigger and bigger pieces of chunks.

COHEN: Jerry always wanted to make them smaller so that there would be better chunk distribution in each scoop, or in each pint, and I insisted that it was critical that the chunks be really, really huge. And he said, "but Ben, somebody might take a spoonful and they won't get a chunk at all." And I said, "that's OK, that's a sacrifice you have to make. It's worth it, for the big chunk they'll get in the next spoon."

VAN DE MARK: Ben & Jerry's genius for getting good results from a bizarre process extends to nearly all parts of their business.

COHEN: Jerry was into production and I was into sales and marketing. And that's what we did, and neither one of us was into the books, and nobody did the books.

GREENFIELD: And I made Ben fire everybody. (LAUGHTER ) I couldn't do it. I couldn't stand to do it, it was, you know, and Ben didn't like to do it but he did it.

COHEN: When somebody needed to get fired, we would go around saying "the monster is hungry, the monster must eat."

GREENFIELD: Yes, because, I mean, Ben couldn't even do it. He had to make himself into this persona, this monster in order to do it. We were not very good bosses.

VAN DE MARK: But they were good neighbors. To share their prosperity with their community, they originally sold stock to Vermonters only.

GREENFIELD: The lawyers and accountants were all saying, you know, we were crazy and this was never going to work. And, you know, nobody had ever done this before, and there weren't that many people in Vermont. Those that were there didn't have much money and we'd never raise enough money.

VAN DE MARK: In May 1984, they did raise enough. Vermonters paid almost $800,000 for a piece of the pie. Those original shareholders were paid more than 37 times their investment, when Ben and Jerry's was bought out last year by Dutch food and soap giant Unilever. As for their well-publicized focus on community charities and protecting the environment, Ben and Jerry say they're as committed as ever.

COHEN: As you help others, you are helped in return. You know, they write about that in the bible. That is the marketing textbook that we use.

VAN DE MARK: For "NIGHTLY BUSINESS REPORT," I'm Donald van de Mark, myprimetime.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

SUSIE GHARIB: In tonight's commentary: the key to getting more out of your employees. Here's Polly LaBarre, senior editor at Fast Company.

POLLY LABARRE, COMMENTARY: Ask any CEO "what's the primary source of your competitive advantage?" Chances are, the answer will be, "our unique culture." But the fact is, you'd be hard-pressed to find a CEO who has much of a clue about the strength of that culture. Let's look at the numbers. When it comes to people and performance, CEO's tend to fixate on two questions: how is our average performance improving over time? And how do we stack up against our competitors? But those numbers don't measure what really matters. Averages hide the range of performance within each organization. According to interviews conducted by the Gallup organization with more than two million workers, just 26 percent of the US working population is engaged, 55 percent is not engaged and 19 percent is actively disengaged. There's even more dramatic range within 200 organizations studied. As you might suspect, there's a powerful link between employee engagement and performance. Gallup found that the most engaged workplaces were more likely to have lower turnover and higher-than-average customer loyalty, productivity and profitability. The message? Stop talking about culture and start making the link between individual engagement, talent and performance. In these resource-constrained times, the CEO's job is simple but not easy: get better at getting the most out of your people. I'm Polly LaBarre.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

PAUL KANGAS: Wall Street opened on a mixed note today, with the blue chips giving back some of yesterday's 102 point, or 1 percent advance in the Dow Industrial Average as it was down nearly 25 points by 10:00 a.m. But some of the tech sector was firm on news CIENA (CIEN) would be added to the Standard & Poor's 500 Index, so the NASDAQ Index added to yesterday's 28 point, or 1.6 percent rise, by posting a 16-point gain after 30 minutes of trading. The larger cap stocks remained moderately lower for the rest of the morning, partly because Salomon Smith Barney cut earnings estimates on the Standard & Poor's 500 Index for this year and next, saying 2001 results would fall 15 percent, while 2002 would show only 5 percent growth. At noontime, the Dow fell to a 37-point deficit, but thanks to strength in the biotech sector, the NASDAQ Index was still up seven points. Afternoon trading slowed to a crawl and the market edged steadily lower, especially after the Federal Reserve released the minutes of is June FOMC meeting which painted a gloomy picture of the economy. The Dow Industrial Average slumped to a closing loss of exactly 47 3/4 points, putting it at 10,229.15. The NASDAQ Index ended with a loss of 17.04 at 1842.97.

Big board volume definitely summer doldrum level, 972 million, well down from yesterday. About a 5 to 3 margin of down volume over up volume.

The Dow Transport Index down nearly 5 points.

But the Utility Index managed to gain exactly 1 1/2.

The Closing Tick neutral at -44.

Standard & Poor's 500 off nearly 3 1/4 points.

Exactly a 1 3/4 point drop in the 100.

The MidCap 400 edged up 4 1/4 of a point.

Bridge Futures Price Index rose 1.31.

A loss of .88 in the New York Composite.

Value Line down nearly 2 points.

Just over a 3 ¾ point loss in the Russell2000 Small Cap Index.

And the broadly based Wilshire 5000 down 32.82.

The bond market recouped most of yesterday's losses today thanks partly to news that the weekly, latest weekly jobless benefit claims rose by a less than expected 8,000. The market was also bolstered by the minutes of the Fed's June rate setting meeting, which we'll have more on in just a moment. Today's upturn in bonds was somewhat subdued however, by a weak dollar and higher New York oil futures.

So tax free and corporates edged up only 1/8 point at best. Longer Treasuries did a little bit better than that but not the short end, up 3/32 on the 5-year note.

10-year note up 5/32.

And the 30-year bond up 10/32.

While the Lehman Brothers Long-Term Treasury Bond Index edged up .440.

Let's have a look at the closing Dow, off exactly 47 3/4 points, giving back oh, not quite half of yesterday's gain. The broader market lower. For every 14 stocks on the upside, nearly 17 on the downside. 188 new yearly highs though; only 50 new lows.

Lucent Technologies (LU) topped the active list on nearly 23 million shares, down $0.03.

Then Qwest Communications (Q) off $1.53. The company's quarterly SEC filing has apparently raised some accounting questions.

Taiwan Semiconductor (TSM) dropped $0.14.

And then NASDAQ 100 Shares (QQQ) cubes in there with a loss of .37, reflecting the sell off in NASDAQ market of course.

EMC (EMC) gained $0.20, fifth in volume.

NorTel Networks (NT) up $0.13.

No change at all in Pfizer (PFE).

Compaq Computer (CPQ) was down $0.36.

Merck (MRK) fell $2.71 on growing concern that the company's arthritis drug called Vioxx might increase the chance of heart attack.

AOL Time Warner (AOL) edged up $0.58, tenth in big board volume.

Barnes and Noble (BKS) gained $1.21. The company broken even on its second quarter versus a loss of $0.13 a year ago and the Street estimate was for a $0.12 loss, not break even, so the stock did well.

Genentech (DNA) up $4.10. CIBC World Markets Brokerage repeated a "strong buy." Intimate Brands (IBI) down $1.22. Company's second quarter results lower, $0.14 versus $0.20 last year. Sales dropped 5 percent for same stores and the company sees just a break even third quarter. Morgan Stanley downgraded it from "outperform" to just "neutral." Standard & Poor's says avoid.

The Limited (LTD), another weak retailer, down $1.27. Second quarter earnings sharply lower, $0.08 versus $0.17 last year. Same store sales dropped 5 percent in the period and Standard & Poor's says avoid this one too.

Morgan Stanley Dean Witter (MWD) down $0.99. Two firms, Putnam Lovell and Keefe Bruyette both cut earnings estimates not only on Morgan Stanley but also on Goldman Sachs (GS), Lehman Brothers (LEH) and Bear Stearns (BSC).

Procter and Gamble (PG) up $1.29. This was the biggest point gainer in the Dow and the stock acting better on a weak dollar which will increase foreign sales.

Orbital Engine (OE) up $1.16, nice percentage move there. The company said 2001 full year results came in at a loss of 26.8 million

Australian dollars but the second half showed sharply reduced net cash outflow. The company's also in a pact with Delphi

Automotive (DPH) over Delphi will acquire the rights to manufacture and sell Orbital's air assisted direct fuel injection technology. A big day for that stock.

Longs Drug Store (LDG) up $1.83. Second quarter earnings lower, $0.30 versus $0.46 last year, but that was a penny better than the Street expected. Company sees third quarter earnings a penny above the Street estimate of $0.19.

Americredit (ACF) up $3.09. Positive reaction apparently to the Fed's lowering of interest rates.

AirTran Holdings (AAT) the big loser, down $1.22. It warned its third quarter earnings will only be $0.02 to $0.06 a share. The Street was expecting $0.14.

Gateway (GTW) down $1.18 on news Standard & Poor's cut the company's credit rating to junk status.

And Kmart (KM) off $1.13. Second quarter operating loss of $0.04. That was in line but sales dropped 1 percent in the period and the company sees pricing pressures ahead.

NASDAQ trading a loss of 17 points in the Index on falling volume from yesterday. Fifteen stocks for every nearly 21 down.

Microsoft Corp. (MSFT) topped the active list off $1.54.

Followec by Cisco Systems (CSCO), up $0.28. You just heard the news on that of course.

Intel Corp. (INTC) down $0.29.

QUALCOMM Inc. (QCOM) an $0.80 loss.

Amgen (AMGN) in that strong biotech group, up $2.04.

Sun Microsystems (SUNW) up $0.14.

IDEC Pharmaceuticals (IDPH) gained $4.48.

A $0.36 rise in CIENA (CIEN) which will become a member of the S&P 500 Index on a date to be announced. .

eBay (EBAY) down $1.85.

And Synopsys (SNPS) down