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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: MU Lation who wrote (34638)	5/5/2000 1:23:00 PM
From: Jeffrey D	Respond to of 77400

=DJ Cisco's Arrowpoint Buy Seen As Classic Cisco Move >ARPT 05/05/2000 Dow Jones News Services (Copyright ¸ 2000 Dow Jones & Company, Inc.) By Janet Whitman NEW YORK (Dow Jones)--Cisco Systems Inc.'s (CSCO) plan to take over Arrowpoint Communications Inc. (ARPT) is viewed as a classic Cisco move. The San Jose, Calif., networking company said early Friday that it signed a definitive agreement to acquire Arrowpoint, a manufacturer of Web switches designed to speed up electronic commerce transactions, in a stock swap valued by Cisco at $5.7 billion. Cisco typically "looks at a market that's growing pretty aggressively and finds out who the best player is and they walk in and pick up market share," said Matthew Barzowskas, an analyst with First Albany Corp. "Web switching is where it's at right now," Ammar Hanafi, Cisco's vice president, business development, said in a conference call early Friday that content switching, which optimizes the delivery of Web content, has become increasingly important to the company as it strives to provide customers with a broader portfolio of services. Analysts were puzzled, however, by the timing of the acquisition, which came on the heels of Arrowpoint's initial public offering in March. "They must really want this badly to pay over $5 billion in stock for it," David Toung, an analyst with Argus Research, told Dow Jones Newswires. "It's a pretty small company." Hanafi defended the move during the conference call, however, saying that Cisco was unable "to seriously engage the company to discuss the possibility of a strategic relationship" until after the IPO. He added that Arrowpoint's valuation is in line with others in the sector. "We think the market opportunity justified our striking this agreement at this time," he said. "We think the market is exploding and there are significant opportunities for new products and different next generation products in this space." (MORE) DOW JONES NEWS 05-05-00