HELSINKI, Sept 24 (Reuters) - Intel, the giant computer
chip maker, seeks both organic and acquisitive growth in
networking, a non-core area where it aims to expand, the
group's chief executive Craig Barrett said on Thursday.
"It is one of the areas we have targetted for growth, and I
think it will come from two different directions, one will be
internal development, products and capability, and also the
acquitision of external capability," Barrett told Reuters.
But he said Cisco (NASDAQ:CSCO), a leading maker of computer
network equipment whose shares have surged on the Internet
boom, would be too expensive based on price to earnings ratios
at the moment, although Intel has a higher market
capitalisation.
On Thursday, Cisco traded at price to earnings ratios of
almost twice Intel's corresponding ratios.
Following is a table of Intel's and Cisco's market value
data on Thursday, according to data in Reuters Securities
3000:
Market capitalisation p/e 1998 p/e 1999
Intel $146.4 bln 27.8 22.9
Cisco $103.0 bln 45.6 36.8
NOTE - Price to earnings ratios are based on I/B/E/S
estimates available in the system, updated on September 21,
which is after Intel said its third quarter should be better
than expected. |
