The BusinessWeek 50 Ranking
46
Cisco Systems
Truly, it's priced for perfection. Despite 19% higher revenues and profits that grew by 24% in the past year, Cisco saw its stock drop on fears that it could not keep up the pace. Not that the San Jose (Calif.) company is doing poorly. Cisco continues to dominate basic corporate networking gear, and it has a lead position in security software, Net telephony equipment, and other new markets. But industry analysts wonder how this behemoth can keep posting double-digit growth without entering markets that have gross margins far below Cisco's 65%-plus average.
Company Info
| 2004 Rank | 63 |
| STOCK INFO | CSCO |
| Market Value | $112.9 BILLION |
| Total Return | (1-yr.) -24.8%
(3-yr.) 22.1% |
| 2004 sales | $23.6 BILLION |
| Sales Growth | (1-yr.) 19%
(3-yr.) 8.3% |
| Net income | $5.4 BILLION |
| Net Income Growth | (1-yr.) 24%
(3-yr.) 31.6% |
| Net Margin* | 22.8% |
| Return on Equity* | 22.7% |
| Industry | TECHNOLOGY HARDWARE & EQUIPMENT |
| CORPORATE WEB SITE | |
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*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat
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Company Snapshot
Cisco Systems, Inc. engages in the manufacture and sale of networking and communications products worldwide. The company provides a line of products for transporting data, voice, and video within buildings and across campuses. Its offerings include routing, which interconnects computer networks by moving data, voice, and video from one network to another; switching, which is used in buildings and campuses to build local-area networks (LAN), across cities to build metropolitan-area networks, and across various distances to build wide-area networks. The company’s technology products and services comprise home networking products, which enable users to share Internet access, printers, music, movies, and games; Internet protocol telephony products, for transmitting voice communications; optical networking products, which provide a path for telecommunications carriers, as well as for carriers and enterprises; and security products, which protects information systems from unauthorized use. It also offers storage networking products that deliver connectivity between servers and storage systems. These products incorporate network features, such as security, traffic management, virtualization, and tools. In addition, Cisco also offers wireless LAN and outdoor wireless bridging products. These products include access points, an integrated wireless and wireline switching system; wireless LAN client adapters; bridges; antennas; and accessories. Its products and services enable customers build their network infrastructures while providing tools to allow them to communicate with stakeholders, including customers, prospects, business partners, suppliers, and employees. The company’s products are installed at corporations, public institutions, telecommunication companies, and commercial businesses, as well as in personal residences. It offers its products and services primarily through its direct sales force, as well as through distributors and retail partners. Cisco has strategic alliances with AT&T Corp.; BearingPoint, Inc.; Bell South Corporation; Cap Gemini S.A.; Electronic Data Systems Corporation; Fujitsu, Ltd.; Hewlett-Packard Company; Intel Corporation; International Business Machines Corporation; Italtel SpA; Microsoft Corporation; Motorola, Inc.; SBC Communications, Inc.; and Sprint Corporation. Cisco Systems was founded in 1984 and is headquartered in Son Jose, California.
No. of Employees
34,000
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