IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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54

Cisco Systems

(NasdaqNM: CSCO)

USA

Along with fellow tech titans such as Microsoft, Dell, and Intel, Cisco has found life can be frustrating at the top. Although it continues to dominate the corporate networking world and has taken a big chunk of related markets for computer security and home routers, investors want more than the 12% revenue growth it posted in 2005. That's one reason Wall Street cheered Cisco's $6.9 billion acquisition of settop-box giant Scientific Atlanta last November. Still, the stock has given back much of those gains in recent weeks, leaving many to wonder if CEO John Chambers needs to make another bold move.

Company Info

2005 Rank

53

Sales*
($ Millions)

27,081.0

Sales Growth
(over prev. year)

12 %

Profits*
($ Millions)

5,576.0

Return on Equity

22.7 %

Total Return on Sales (12-mo.)

1.4

Share Price
As of 5/31/06

19.68

CURRENT
MARKET INFO

NasdaqNM: CSCO

No. of Employees

38,413

Industry Communications Equipment
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Cisco Systems engages in the manufacture and sale of networking and communications products worldwide. The company provides products for transporting data, voice, and video within buildings and across campuses. It offers routers, which interconnect computer networks by moving data, voice, and video from one network to another; and switching systems that are used to build local-area networks (LAN), metropolitan-area networks, and wide-area networks. Cisco's technology products 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 protect information systems from unauthorized use. It also offers storage networking products that deliver connectivity between servers and storage systems. In addition, the company 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. Cisco offers its products and services primarily through its direct salesforce, as well as through distributors and retail partners. The company has strategic alliances with AT&T, BearingPoint, BellSouth, Cap Gemini, Electronic Data Systems, Fujitsu, Hewlett-Packard, Intel, IBM, Italtel, Microsoft, Motorola, SBC Communications, T-Systems, and Sprint. Cisco was founded in 1984 and is headquartered in San Jose, Calif.


Data provided by Capital IQ
 
John T. Chambers

John T. Chambers, 56

President and Chief Executive Officer

Total Compensation

$1,658,977

Value of Options

$182,341,100

Indiana University - Bloomington - MBA, West Virginia University - BA, West Virginia University - BS, West Virginia University - Other Education

John Chambers has been president and chief executive officer of Cisco Systems since January, 1995. Chambers joined Cisco as senior vice-president, worldwide sales and operations, in January, 1991, and became an executive vice-president in June, 1994. Prior to Cisco, he was with Wang Laboratories for eight years, most recently as senior vice-president of U.S. operations. He served as president and CEO of StrataCom. He has been a member of the board of Cisco Systems since November, 1993. Chambers also serves on the board of Wal-Mart Stores. Chambers has served two American presidents, most recently as vice-chairman of President George W. Bush's National Infrastructure Advisory Council. Chambers was 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 Ron Brown Award for Corporate Leadership from the Business Council. He holds a law degree and a bachelor's degree from West Virginia University. He holds an MBA from Indiana University.



Executive Data provided by Capital IQ