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

To: Glenn D. Rudolph who wrote (10300)	11/6/1997 9:24:00 AM
From: Zoltan!	Respond to of 77400

See Cisco Sys Seen Secure As Dominant Data-Networking Co. By Lisa Bransten The Wall Street Journal Interactive Edition interactive.wsj.com!DI11/0518:167036!BT11/0518:155285!&time=11/06+08:46 (excerpt) Late Tuesday, the world's No. 1 data-networking company, reported a 30% revenue increase for the three months ended Oct. 25 from a year earlier. First-quarter net income was $336.5 million, or 48 cents a share, compared with $180.9 million, or 26 cents a share, in the year-ago period. Several analysts raised their ratings on Cisco in the wake of the release. That was a turnaround from last winter when the company saw its shares plunge as sales softened and nervousness emerged that either 3Com Corp. (COMS) or Bay Networks Inc. (BAY) might be able to steal market share. Cisco has supplied about 80% of the equipment on which the Internet backbone is built. Signs from the company's results that the market for data-networking equipment continues to improve had little effect on several of the large competitors in the sector. Bay slipped 9/16, or 1.6%, to 34 1/8 on the Big Board and 3Com was 3/16, or 0.4%, weaker at 43 7/16 on Nasdaq. More importantly for Cisco, analysts said the results showed that worries about competitive pressures were unfounded. Cisco's growth rate indicates the company is taking market share away from traditional competitors in most product sectors, according to Chief Executive John Chambers. "Twelve months ago, some of the others had a fighting chance," said Volpe Brown & Whelan Co. analyst Amar Senan. "You had a whole bunch of networking companies that were roughly the same size and Cisco has just broken away from the pack." Volpe Brown analyst Senan has rated the stock a buy and believes it may go to $105 over the next 12 months. "It looks as if [Cisco] is on a roll," he said. "They are doing well in today's networks and are positioned to do extremely well in tomorrow's networks." BancAmerica Robertson Stephens analyst Paul Johnson said he was never worried that Cisco would lose its dominant position. "It was dopey reasoning" that led investors to conclude that 3Com, which derives about one-third of its revenue from networking equipment, could take on Cisco, he said. Johnson has a buy rating on the stock even though he concedes it's not cheap and it will be difficult for the company to maintain revenue growth that outpaces the sector's. He said Cisco will continue to dominate its markets and come out with new products quickly. "The stock is fairly valued knowing what we know now," he said, "but I fundamentally believe that Cisco is going to be able to keep this gig going longer than is valued in the price of the stock." Regards