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By eweek  |  Posted 2003-04-14 Print this article Print

Chambers: If the company executes well, the stock will take care of itself. Wall Street has voted the value of Ciscos future is that of our 11 closest competitors times three plus. Its quite an honor. During the height of the bubble, the market cap of those competitors was $937 billion. Today its $32 billion. [Editors note: a Cisco spokesman said these competitors are: Nortel Networks, Ltd., Lucent Technologies, 3Com Corp., Foundry Networks, Inc., Redback Networks, Inc., Extreme Networks, Inc., Juniper Networks, Inc., Enterasys Networks, Inc., Riverstone Networks, Inc., Sycamore Networks, Inc. and CIENA Corp.] Wall Street has pretty high expectations of Cisco. The issue for the street is whats our growth rate.
eWEEK: What should be the growth rate for a company of Ciscos size and maturity?
Chambers: You tell me the growth rate of the industry and the GDP and I can be pretty accurate. But nobody knows what the GDP growth rate is. It depends on GDP growth because capital spending it tied to GDP growth. eWEEK: Has the 100-year flood of the past couple of years subsided? What lessons did you learn from it? Chambers: If you talk to companies outside of IT, they will tell you how to handle peaks and valleys in their industries. Slowdowns will surprise you. The first thing you ask is did you do it yourself or did the industry do it to you. Thats important. We did some soul-searching. eWEEK: Was it a combination of both?


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