Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: drmorgan who wrote (17096)	8/18/1998 3:42:00 PM
From: Scrapps	Respond to of 22053

Cisco lands AOL contract By Larry Barrett August 18, 1998 1:32pm Inter@ctive Investor The rich just keep getting richer. On Tuesday, America Online Inc. (NYSE: AOL) chose Cisco Systems Inc. (Nasdaq: CSCO) to supply high-volume network equipment to speed its subscribers' access to the Internet. Cisco shares picked up 1 15/16 to 100 1/16. While financial terms of the pact weren't disclosed, Cisco officials said the deal was one of the largest to date for its gigabit switch router, a high-volume piece of network equipment used in the backbone of AOL's data network to switch billion of bits of data per second. AOL officials said Cisco's 12000 Series gigabit switch routers will increase both the speed and the volume of its Internet backbone that connects subscribers to AOL's online service directly to the Internet. "With the Cisco 12000 gigabit switch router, we found an excellent solution to position ourselves for continued growth," said Joe Barrett, AOL's vice president of Internet Operations in a prepared statement. With more than 12 million subscribers, AOL is the world's largest online service provider. Cisco, which reported rock-solid earnings in its fourth quarter, continues to gain market share as the world's largest network equipment vendor. In the fourth quarter, Cisco earned $491 million, or 45 cents a share, on sales of $2.3 billion. First Call consensus expects the San Jose, Calif.-based firm to earn 50 cents a share in its first fiscal quarter and $2.18 a share in fiscal 1999. Cisco shares were trading at a paltry 45 3/8 in September before zooming up to a 52-week high of $104 « in July. Thirty-one of the 34 institutional investment firms following the stock maintain either a "buy" or "strong buy" recommendation. Company officials said the Cisco gigabit routers could help enable AOL to offer so-called quality of service features for which customers would pay extra in order to guarantee immediate delivery of high-priority communications. AOL shares shot up 4 5/16 to 108 _.