Topic: How To Invest

Pat: Could you please give me your opinion on Cisco Systems? Thank you kindly.

Article Excerpt

Cisco Systems Inc., $18.85, symbol CSCO on Nasdaq (Shares outstanding: 5.4 billion; Market cap: $101.8 billion; www.cisco.com), is a leading maker of hardware and software that links and manages computer networks. The company’s hardware includes routers, local-area network (LAN) and asynchronous transfer mode (ATM) switches and dial-up access servers. Cisco’s Internet Operating System (IOS) software ties these products together, delivers network services (which interconnect and move information between networks) and lets programs run across networks. Cisco gets about 46% of its revenue from overseas customers. The company also sells home routers and networking products to consumers under the Linksys brand. Consumer products account for less than 5% of Cisco’s sales. Cisco recently announced a major restructuring plan that includes closing its Flip camcorder operations and other underperforming businesses. In addition, Cisco will cut 9% of its workforce. In all, these moves should cut Cisco’s yearly costs by $1 billion, starting within the next 12 months. These savings will help it compete…