Each year, Cisco's success makes CEO John Chambers' challenge even greater: to make good on his pledge to keep the $24 billion networking behemoth growing at more than 12%, while maintaining the best margins for any hardware company on the planet. It would be an unprecedented feat, but Chambers has Cisco positioned in a host of promising markets, from voice-over-Internet-protocol phone systems to wireless home networks.
The result: So far, so good. Cisco has upped sales 12% through the first three quarters of its fiscal year, to $18.2 billion, with gross margins a mouth-watering 68.6% -- nearly twice that of IBM. The trick will be executing on so many fronts at once.
All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
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
Data provided by
John T. Chambers
Bio
John T. Chambers has been President and Chief Executive Officer of Cisco Systems Inc., since January 31, 1995, when he assumed this position, Chambers has grown the company from US$1.2 billion in annual revenues to its current run-rate of approximately US$23.8 billion. Mr. Chambers joined Cisco Systems Inc., as Senior Vice President Worldwide Sales and Operations, in January 1991 and became an Executive Vice President in June 1994. Prior to joining Cisco Systems Inc., he was with Wang Laboratories for eight years, most recently as Senior Vice President of U.S. Operations. He served as President and Chief Executive Officer of Stratacom Inc. He has been a Member of the Board of Directors of Cisco Systems Inc., since November 1993. Mr. Chambers serves on the Board of Directors of Wal-Mart Stores, Inc. Mr. Chambers has been lauded by government leaders and countless publications worldwide for his visionary strategy, his ability to drive an entrepreneurial culture, and his warm-hearted, straight-talking approach. Mr. Chambers has served two American presidents; most recently as Vice Chairman of the President George Bush National Infrastructure Advisory Council (NIAC). On this committee, he provides industry experience and leadership to help protect the critical infrastructure of the United States. He served on President Bush's Transition Team, Education Committee, and previously served on President Bill Clinton's Trade Policy Committee. Recently Mr. Chambers has spearheaded several key global initiatives, including co-sponsorship of the Jordan Education Initiative, in partnership with his Majesty King Abdullah II of Jordan and the World Economic Forum. In March, for the second time, Chambers was given the "Best Investor Relations by a CEO" award by Barrons and IR Magazines, and in April he received the prestigious "Woodrow Wilson Award for Corporate Citizenship" from the Woodrow Wilson International Center for Scholars of the Smithsonian Institution. Recently, Chambers was also named "The Most Influential CEO" in telecommunications by Institutional Investor magazine and "The Most Influential Person in Communications" by Telecom Magazine. He has received numerous other awards including the Smithsonian Lifetime Achievement award and the Presidential Award: Ron Brown Award for Corporate Leadership from the Business Council. He holds a law degree and a bachelor of science/bachelor of arts degree in business from West Virginia University. He later received a masters of business administration degree in finance and management from Indiana University.
AGE: 55
Titles
Chief Executive Officer, President, Director and Chairman of Acquisition Committee
Indiana University - Bloomington (MBA), West Virginia University (JD), West Virginia University (BA/BS)
* Latest available fiscal year
** The sum of the net value of options exercised and held in the latest available fiscal year
Key Executives
John T. Chambers, Larry R. Carter, Mark Chandler, Charles H. Giancarlo, Richard J. Justice, Mario Mazzola, Randy Pond, Dennis D. Powell, Betsy Rafael, James Richardson
Board Members
Larry R. Carter, John T. Chambers, John P. Morgridge, Donald T. Valentine, James Gibbons, Carol A. Bartz, Jerry Yang, Steve West, James C. Morgan, John L. Hennessy, Roderick McGeary, M. Michele Burns, Richard M. Kovacevich
