Acquisitions broaden Cisco’s expertise

Article Excerpt

CISCO SYSTEMS INC. $44 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.8 billion; Market cap: $211.2 billion; Price-to-sales ratio: 4.4; Dividend yield 3.0%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks. Its main products include routers, switches and Internet conferencing systems. Cisco continues to face strong competition from cheaper generic routers and switches. In response, it has shifted into faster-growing markets such as computer security systems and software. It’s also selling some of its legacy operations. Fluctuating revenue reflects shift in strategy Due to those transactions, the company’s revenue has been somewhat erratic in the past five years. Revenue fell from $48.6 billion in 2013 to $47.1 billion in 2014 (fiscal years end July 31). Revenue improved to $49.2 billion for both 2015 and 2016, but then fell to $48.0 billion in 2017. If you exclude unusual items, Cisco’s overall earnings gained 11.0%, from $10.9 billion in 2013 to $12.1 billion…

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