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

To: chaz who wrote (59482)	5/13/2002 6:42:07 AM
From: puborectalis	Respond to of 77400

Cisco Positioned To Profit From Changing Market May 13, 2002 Company focuses on growth areas, including security and storage By John Rendleman Technology managers have started to buy more networking equipment. But they're not buying a lot, and Cisco Systems, the market leader, isn't sure they're going to keep buying. Still, the stock market soared last week when Cisco reported higher sales and profits. "It was nice to see revenue growth year over year, even if it was only a small amount," Cisco CEO John Chambers says. But it isn't clear whether the company's improved financial results are because of an overall increase in spending on networking equipment or Cisco increasing its market share at the expense of rivals, Chambers says. For the third fiscal quarter ending April 27, Cisco reported $4.82 billion in revenue, resulting in net income for the period of $729 million. The company improved or matched revenue and net income from the previous quarter and from the same period a year ago. The results were issued while Chambers was attending a networking trade show at which he said Cisco would focus on markets it expects will show strong growth: voice over IP, wireless LANs, virtual private networks, security, storage, and integrated voice, data, and video. Cisco last week launched a batch of content-networking and security and intrusion-detection products. The high-end, gigabit-speed Intrusion Detection System-4250 will be available this month for $25,000. The more economical IDS-4235 will be priced at $12,500. At the same time, Cisco launched its IDS Device Manager and its IDS Event Viewer, two software tools available free with Cisco IDS sensor software. The content-networking products, which store and distribute multimedia content within organizations, include the Content Services Switch 11500, the Content Switching Module 3.1 for its Catalyst 6500 switch, and new software and software enhancements for content hosting and distribution. Cisco is on the right track with its strategy of acquiring companies and technologies to broaden its product portfolio, says Michael Jude, research director at market-research firm Enterprise Management Associates, but the vendor needs to do a better job of integrating its acquisitions with its own products.