Topic: How To Invest

Pat: Can I have your recommendation on Cisco Systems, CSCO on Nasdaq? Thank you.

Article Excerpt

Cisco Systems Inc., $24.56, symbol CSCO on Nasdaq (Shares outstanding: 5.6 billion; Market cap: $137.1 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. (Servers are computers that manage shared files or programs on a network.) 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 on networks. Cisco gets about 45% of its revenue from overseas customers. In its 2010 fiscal year, which ended July 31, 2010, Cisco’s revenue rose 10.9%, to $40.0 billion from $36.1 billion in fiscal 2009. The improving economy has prompted many businesses to update their networking equipment. Excluding one-time items, earnings rose 18.6%, to $9.4 billion from $8.0 billion. The company bought back 325 million shares during fiscal 2010, at a cost of $7.8 billion…