Cisco
San Jose, California, United States
Industry: Technology/Networking
Region: US 🇺🇸
Year Founded: 1984
IPO Date: 02-16-1990
Market Cap: $240 billion (as of 2021)
Number of Employees: Approx. 75,000
Revenue: $49.3 billion (2021)
Net Income: $11.9 billion (2021)
Cisco Systems, Inc.
Cisco IPO
Cisco Systems, Inc.’s initial public offering (IPO) took place on February 16, 1990. The company was listed on the NASDAQ stock exchange under the ticker symbol “CSCO.”
At the time of the IPO, Cisco priced its shares at $18 per share. The IPO gave the company a market cap of $224 million.
Cisco’s IPO came six years after the company was founded by Leonard Bosack in 1984, who had worked to develop the Advanced Gateway Server based on Stanford University’s router. Initially focused on developing and selling networking products, Cisco became a major player in the networking industry.
Following its IPO, Cisco went on to log an incredible 30,000% gain over the next decade, becoming the poster child for dot-com mania. By March 2000, Cisco’s market cap had expanded to more than $500 billion, making it the most valuable company in the world at the time.
However, Cisco faced significant setbacks when the dot-com bubble burst. From March 27, 2000, to March 27, 2001, Cisco lost 77.4% of its market cap. Today, Cisco’s market cap has bounced back significantly to $200 billion, but it’s still less than half of its peak value.
Despite the challenges, Cisco has remained a leading innovator in the technology industry, particularly in networking and internet technology. The company has expanded its product lineup to include a wide range of networking products, software, and services, maintaining a strong presence in areas such as routers, switches, and cybersecurity.
Investors who bought Cisco at its IPO price and held on to their shares have seen remarkable returns, as Cisco’s share price has risen significantly over the years, reflecting the company’s success and influence in the technology industry.
Cisco IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Cisco’s Prospectus here.
Company Overview & History
Cisco Systems, Inc., founded in 1984, is a global technology leader in networking and communications. With its headquarters in San Jose, California, Cisco has become a prominent name in the industry.
The company designs, manufactures, and sells networking equipment, software, and services, enabling organizations to connect and collaborate securely.
Cisco’s history is closely tied to the development and growth of the internet. As one of the pioneers in the networking industry, Cisco played a crucial role in building the infrastructure that forms the backbone of the internet.
Over the years, the company has expanded its product portfolio to include a wide range of solutions for enterprise networking, data centers, security, collaboration, and the Internet of Things (IoT).
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2022 | 49.82 | 10.55 | 15.51 | 15.51 |
| 2021 | 49.82 | 10.55 | 15.51 | 15.51 |
| 2020 | 49.3 | 11.2 | 15.9 | 15.9 |
| 2019 | 51.9 | 11.6 | 17.1 | 15.8 |
| 2018 | 49.3 | 0.1 | 13.7 | 13.7 |
| 2017 | 48.0 | 9.6 | 13.3 | 13.3 |
| 2016 | 49.2 | 10.7 | 14.3 | 13.6 |
| 2015 | 49.2 | 8.9 | 13.5 | 12.8 |
| 2014 | 47.1 | 7.9 | 12.6 | 12.1 |
| 2013 | 48.6 | 10.0 | 13.4 | 12.9 |
| 2012 | 46.1 | 8.0 | 12.1 | 11.5 |
| 2011 | 43.2 | 6.5 | 11.2 | 10.5 |
| 2010 | 40.0 | 7.8 | 10.9 | 10.2 |
| 2009 | 36.1 | 6.1 | 9.8 | 9.3 |
| 2008 | 39.5 | 8.1 | 11.3 | 10.4 |
| 2007 | 34.9 | 7.3 | 10.1 | 9.5 |
| 2006 | 28.5 | 5.6 | 8.1 | 7.6 |
| 2005 | 24.8 | 5.7 | 7.2 | 6.9 |
| 2004 | 22.0 | 4.4 | 6.3 | 6.0 |
| 2003 | 18.9 | 3.6 | 5.5 | 5.3 |
| 2002 | 18.9 | 1.9 | 4.7 | 4.6 |
| 2001 | 22.3 | 0.7 | 5.1 | 5.0 |
| 2000 | 18.9 | 2.7 | 4.6 | 4.5 |
| 1999 | 12.2 | 1.9 | 3.1 | 3.0 |
| 1998 | 8.5 | 1.3 | 2.1 | 2.0 |
| 1997 | 6.4 | 1.0 | 1.6 | 1.5 |
| 1996 | 4.1 | 0.6 | 1.0 | 0.9 |
Business Model
Cisco operates on a business model centered around providing networking solutions and services to organizations of all sizes. The company offers a comprehensive portfolio of hardware, software, and cloud-based products that enable customers to build and manage robust networks.
Cisco’s solutions span multiple areas, including routing, switching, security, wireless connectivity, and cloud networking.
In addition to its product offerings, Cisco provides a range of services, including technical support, consulting, and managed services.
The company’s business model focuses on delivering integrated solutions that address the evolving needs of its customers. Cisco’s network-centric approach enables organizations to enhance productivity, improve security, and drive innovation.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2023 | 225.9 |
| 2022 | 209.3 |
| 2021 | 198.7 |
| 2020 | 187.1 |
| 2019 | 176.5 |
| 2018 | 165.9 |
| 2017 | 155.3 |
| 2016 | 144.7 |
| 2015 | 134.1 |
| 2014 | 123.5 |
| 2013 | 112.9 |
| 2012 | 102.3 |
| 2011 | 91.7 |
| 2010 | 81.1 |
| 2009 | 70.5 |
| 2008 | 59.9 |
| 2007 | 49.3 |
| 2006 | 38.7 |
| 2005 | 28.1 |
| 2004 | 17.5 |
| 2003 | 6.9 |
Risk Factors
As with any technology company, Cisco faces certain risk factors that may impact its operations and financial performance.
These risks include intense competition from other networking equipment vendors, rapid technological advancements, changes in customer preferences, and global economic conditions. Cisco is also exposed to potential supply chain disruptions, cybersecurity threats, and legal and regulatory challenges.
The company actively manages these risks through ongoing research and development, strategic partnerships, and a focus on customer satisfaction.
Market Opportunity
Cisco operates in a dynamic market with significant opportunities driven by digital transformation, the proliferation of connected devices, and the growth of cloud computing.
The increasing demand for secure and reliable networking infrastructure presents a substantial market opportunity for Cisco’s solutions.
The company aims to capitalize on this opportunity by continuing to innovate, expand its product portfolio, and provide solutions that enable organizations to connect, communicate, and collaborate effectively.
Competitors
- Juniper Networks, Inc.
- Arista Networks, Inc.
- Huawei Technologies Co., Ltd.
- Nokia Corporation
- Hewlett Packard Enterprise Company
- Fortinet, Inc.
- Palo Alto Networks, Inc.
- Extreme Networks, Inc.
Key/Fun Company Facts
- Cisco was founded by Leonard Bosack and Sandy Lerner, who were both computer scientists at Stanford University.
- The company’s name “Cisco” is derived from the city name San Francisco, where the company was originally headquartered.
- Cisco has been a pioneer in the development and standardization of networking protocols, including Ethernet and IP (Internet Protocol).
- The company is known for its commitment to corporate social responsibility, including initiatives related to sustainability, education, and community development.