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

To: Monty Lenard who wrote (59550)	5/17/2002 6:32:09 AM
From: puborectalis	Respond to of 77400

Cisco gaining share in routers, switches CHICAGO (Reuters) - Networking giant Cisco Systems Inc. , the No. 1 maker of gear that directs Internet traffic, picked up market share in almost every router and switch segment in the first quarter, a report said Thursday. Cisco, based in San Jose, California, extended its lead in many segments, including high-end routers that operate at speeds higher than 10 gigabits per second where it competes with Juniper Networks Inc. , and switches, according to networking market research firm Dell'Oro Group. This follows similar gains made by Cisco in the fourth quarter. A router is a machine that connects two computer networks for the transmission of data and information, while a switch looks at incoming data to determine the destination address. In the overall router market, Cisco extended its share of the global market to 85.5 percent in the first quarter from 84.4 percent in the previous quarter, a Dell'Oro spokeswoman said. Juniper, meanwhile, saw its share slip to 6.4 percent from 8 percent. Revenues in the global industry router market slipped to $1.62 billion in the first quarter from $1.67 billion in the fourth quarter, Dell'Oro said. In the overall ethernet switch market, which is made up of seven segments called layers, Cisco extended its share of the global market to 66.9 percent in the first quarter from 62.5 percent in the fourth quarter, the Dell'Oro spokeswoman said. Nortel Networks Corp. of Canada saw its share of that market slip to 5.7 percent from 7.5 percent, Dell'Oro said. Revenues in the global industry ethernet switching market fell to $2.65 billion in the first quarter from $2.7 billion in the fourth quarter, Dell'Oro said. In each of the switch segments and router segments Cisco picked up market share, as well as in the edge switch market and broadband, also called high-speed Internet, aggregation market, Dell'Oro said. SG Cowen analyst Christin Armacost said in a research note that the report reaffirms that the enterprise, or large corporate, market remains stable and Cisco is gaining share across most segments. She added that Extreme Networks Inc. gained share in the Layer 3 switching segment to become the No. 2 player behind Cisco. Armacost said the overall market in the first quarter was flat to slightly down after a sharply rebound in the fourth quarter. She said the best growth opportunities are in ethernet switching, which favors Cisco and Extreme, and edge routing, which favors Cisco and Unisphere Networks Inc. Armacost said Riverstone Networks Inc. and Enterasys Networks Inc. both lost share in the Layer 3 modular switching segment. She said the picture was mixed for Foundry Networks Inc. , which picked up share in the Layer 3 segment, but lost share elsewhere. Redback Networks Inc. passed Nortel to become No. 1 in the broadband aggregation market, while Avici Systems Inc.'s share was unchanged in the core router market, Armacost said.