California Investment Association

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California Investment Association

• Thomas R York
• CISCO Systems

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CISCO SYSTEMS

• Cisco Systems, which supplies the majority of
  networking gear used for the Internet, is the
  world's largest supplier of high-performance
  computer internetworking systems. Product
  families are categorized into four segments
  switches (42 of total FY 07 (Jul.) product
  sales), routers (23), advanced technologies
  (27), and other.

• 70 of Ethernet switching market
• 50 of Router market
• For core routers (speeds of over 2.5 gigabits per
  second), Cisco and Juniper dominate the market
  with over 95 market share.
• 23bn in cash, generates 700mn per month. Return
  on equity gt 25.

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The service provider market should benefit from
an intensifying competitive environment as
telecom and cable operators race to build a
unified voice and data network. - Ari
Bensinger, Standard and Poors
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Financial Highlights
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Major Competitors

• Advanced networking
• Ericsson, Rev. 32bn (187bn SEK)
• Alcatel-Lucent, Rev. 29bn (17.8bn euro)
• Huawei, Rev. 16bn
• Nortel, Rev. 11bn
• Juniper, Rev . 2.8bn
• Tellabs, Rev. 2bn