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To: Roy F who wrote (2019)	3/24/1999 9:42:00 AM
From: SteveG	Read Replies (1) \| Respond to of 3299

<A> Cisco May Buy "Eight To 10" Cos In Next 18 Months - Exec HONG KONG (Dow Jones)--Shrugging off both Asia's currency crisis and the year-2000 computer problem, networking company Cisco Systems, Inc. (CSCO) said it will acquire about 10 companies worldwide in the next 18 months and will beef up its Asian presence by 40% over the next year. "We look at, literally, an investment acquisition opportunity a day," Cisco's regional president, Bill Nuti, adding that company has "eight to 10" companies, mainly in the area of voice technology, in its sights. But he declined to elaborate on the type of companies Cisco's eying to avoid tipping its hand to competitors or to potential targets. Nuti also said he thinks the worst is over for Asia. "The economic crisis will eventually subside. I think it's safe to say we're...past the bottom and looking up," said Nuti, after unveiling a proposed US$40 million Asian expansion plan. "Despite the tough economic environment, in Asia, our business in the region increased dramatically by 40% in 1998," Nuti said. Of Cisco's 1998 revenue of US$8.5 billion, about 59% came from the U.S., about 30% from Europe. Asia contributed about 10%, but that's likely to rise, he said. "I suspect that long-term we will be a much larger part of revenue because of growth in Asia," he said. Nuti said he expects solid growth in Internet usage in Asia, saying that Asia is expected to account for about 20 million Internet users at the end of 2000, out of a total of 177 million at the end of 2000. He also expects Internet usage to continue to surge. According to one "very conservative forecast," Internet users will total 325 million by the end of 2002, Nuti said. Cisco claims to provide more than 85% of the Internet's hardware and software. He expects Internet traffic in Asia to grow tenfold by the end of 2000. Cisco is opening new regional offices in China and Vietnam, a technical assistance center in South Korea and more spare parts depots in Asia. Nuti was upbeat on Asia's ability to cope with the Y2K problem, which stems from the fact that most computers use two digits instead of four to represent a year. He said many Asian companies' network systems are newer than their counterparts in the United States or Europe and are largely Y2K compliant. Unless programmed for the change, computers can mistake the year 2000 for 1900 when internal clocks roll over on Jan. 1. The glitch could affect millions of computer microchips in machines across the globe. Nuti also hit out at critics of technology companies' high stock prices. While he admitted that there's a grain of truth to criticism that some technology companies are overvalued, Nuti said investors are looking at revenue growth patterns rather than profits when they buy tech stocks. He pointed to bookseller Amazon.com, which in only a few months built up its Internet business to compete with Barnes and Noble, a major bookseller in the U.S., which took 30 years to build its business to more than 1,000 outlets. Nuti said Nasdaq-listed Cisco is valued at a price earnings ratio of between 60 times and 70 times current earnings, valuing the company at between US$140 billion US$160 billion. That puts it in the world's top 15, he said. Fortune 500 ranks Cisco Systems 253 in the world. - By Sean Kennedy (END) DOW JONES NEWS 03-24-99 02:40 AM