"Cisco could hit $20 billion in revenues by 2000"
09:51 PM ET 11/18/97
LAS VEGAS, Nov 18 (Reuters) - Electronic commerce is
growing at such a speed that networking giant Cisco Systems
Inc. could see revenues of $15 billion to $20 billion
by the year 2000, President and Chief Executive John Chambers
said Tuesday.
Chambers told the COMDEX computer trade show in Las Vegas
that current estimates for electronic commerce, which includes
selling over the Internet, are vastly under estimated.
"Network commerce will grow faster than people realize,"
Chambers said in a keynote address that compared the "Internet
revoltion" to the Industrial Revolution.
He said recent estimates that electronic commerce will
generate anywhere from $20 billion to $300 billion by the
beginning of the millennium are too small and electronic
commerce could reach $1.5 trillion in revenues by 2000-2001.
Chambers told reporters afterward that most of the growth
in electronic commerce will be fueled by business-to-business
transactions, and that currently 39 percent of orders for
Cicso's products, such as networking equipment, are placed by
customers over the Internet.
"By the year 2000, we could be in the range of $15
(billion) to $20 billion, if we are successful," Chambers said.
In fiscal 1997, Cisco's revenues were $6.5 billion.
Chambers also said that the company's business in Asia has
now become its slowest growing, as a result of the Asian
currency crises.
He said Asia represented 12 percent of Cisco's total
revenues in the most recent first quarter, compared with 16
percent previously.
He declined to specify any further how the slowdown in the
Asian markets would impact its earnings.
He said that while the Asian markets represent a challenge
to Cisco, China is still a booming market, and the United
States still represents its fastest growing market. "We don't
see the U.S. slowing down," he said.
"We are seeing many countries in Europe starting to pick up
(capital) spending," Chambers added.
He declined to make any projections about the company's
second fiscal quarter.
Last week, Cisco reported earnings per share of 59 cents in
its first quarter, excluding a write-off for purchased research
and development.
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