Daniel Niles Inventory Quotations

We believe the semiconductor inventory correction is far from over.

We believed that Cisco's results would further magnify the inventory problems facing their semiconductor suppliers -- and they did, ... While revenue increased 14 percent from the previous quarter, total inventory increased 59 percent and raw materials increased 335 percent.

Contract manufacturers have seen their inventory grow 104 percent year-to-date, versus revenue growth of 52 percent, while distributors have seen a 24 percent increase in inventory in the past six months, versus a revenue increase of 15 percent.