Is there a competitor out there for Cisco? Message Board

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Technology Stocks : Is there a competitor out there for Cisco?

CSCO 72.77

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1:21 PM EDT

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To: Herb Duncan who wrote (13)	11/2/1996 2:30:00 PM
From: Rudi Strobl	of 29

Herb, I don't think NN is a match for CSCO in terms of product breadth and network management, aside from other critical mass issues. Basically, CSCO IS the Microsoft of networking. By comparison, circa 45% of NN revenues are still highly dependent on TDM, a product that has peaked and is not even being offered by CSCO. NN is much more of a telco market player whereas CSCO's primary competencies are in data networking. NN's ATM WAN investment has yet to play out, and there are uncertainties considering the emergence of Gigabit Ethernet and IP switching. CSCO seems to be much better positioned to cope with any of these areas as it becomes clearer which networking methods will prevail. CSCO is more likely to be a standards setter and outspends NN by far in R&D and is taking a much more aggressive role in acquiring technology both through internal development as well as acquisition. This is not to say that NN is a poor company. I know both companies since their inception and am long in both. NN may be a more attractive buy on an earnings multiple than CSCO which is trading pretty close to its full valuation (i.e. expected earnings).

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