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

To: Stock Farmer who wrote (61804)	10/10/2002 2:18:12 PM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Yeah, M&A as a means for growth is a tough thing. For instance, many moons ago, I dumped all my Compaq shares when they decided to acquire DEC. I knew that would fail. They managed their topline without any regard to bottom line growth during their acquisitive days. Cisco did the same thing.

To: Stock Farmer who wrote (61804)	10/11/2002 1:06:56 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

It's not a binary question of whether or not there are new products, it's a question of magnitude and degree. Having a new billion dollar product line is wonderful. Unless of course you are paying for having an additional ten billion dollar product line. Well the carrier class mkt is 2 billion currently, down substantially from peak. (Gartner had carrier class growth projections at almost 10x enterprise once) Juniper used to have anywhere from 40-60% in 2000. I can't find a reference now, but I recall seeing cisco at 30% or so. Now cisco is at 60 with Juniper at 17 (of course you have to add unisphere now so thats a 24 share). Does anyone out there disagree that the carrier market is the most important growth area for cisco (that they don't currently dominate)? (serious question- I don't know how large VoIP is, for example). Cisco has been growing their business by aggressive M&A. M&A has all but stopped. Connect the dots. Extrapolate. Since cisco has already made acquisitions to get into the carrier mkt, but was still losing to juniper through 2000, what more can they do from an acquisition perspective to gain share? Buy Juniper, I guess. As it stands they seem to have improved their existing products to the 5-9's (I'm guessing) while jnpr is in a cash crunch and can't devote the same number of resources to the mkt. Conclusion: no acquisition, but tremendous growth gains in 2003 and beyond- do you dispute this? Despite the grim news, Cisco has a commanding 60 percent lead in the SPR market, according to Dataquest. The networking giant shipped 1,862 machines that quarter, more than double the number of shipments made by Juniper, Cisco's nearest competitor. Juniper placed second in sales with 17.7 percent market share and $87.3 million in second-quarter revenue, while Unisphere placed third with 7 percent market share and $34.7 million in revenue. ecommercetimes.com