Cisco Systems, Inc. (NASDAQ:CSCO) is a big piece of the Nasdaq 100 index, which means it has been dealt in recent action along with everything else following the breakout higher in long-term interest rates nearly two weeks ago. The action has been far more volatile than anything we’ve seen since February, with the VIX index well above 20 for most of the past week. That’s going to make times tough for CSCO shareholders. But Q3 earnings sits just ahead, and we may see a peak number.
In addition, the company recently announced that, based on its recent analysis of the global network access control (NAC) market, Frost & Sullivan recognized the company with the 2018 Global Market Leadership Award for capturing 34.3% of the market with its broad security product portfolio and strategic acquisitions. According to the release, “The Cisco Identity Services Engine (ISE) has completely dominated the enterprise and large enterprise segments, as well as every vertical market and geographic region. It effectively serves these large organizations by integrating ISE with its comprehensive and scalable solutions, which have a wide set of features and functions.”
Cisco Systems, Inc. (NASDAQ:CSCO) trumpets itself as a company that designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide.
The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications.
It also provides collaboration products comprising unified communications, TelePresence, and conferencing, as well as the Internet of Things and analytics software.
In addition, the company offers security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, advisory, integration, and managed services; and other products, such as service provider video software and solutions, and cloud and system management products.
Further, it offers technical support services and advanced services; and hyperconvergence software, cloud calling and contact center solutions, and AI-driven relationship intelligence platform.
The company serves businesses of various sizes, public institutions, governments, and service providers. It sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors.
The company was founded in 1984 and is headquartered in San Jose, California.
Healthy
We started off by noting that CSCO just hit the wires with the announcement that, based on its recent analysis of the global network access control (NAC) market, Frost & Sullivan recognized the company with the 2018 Global Market Leadership Award for capturing 34.3% of the market with its broad security product portfolio and strategic acquisitions.
CSCO has had a rough past five days of trading action, with shares sinking something like -5% in that time. Naturally, this is a major index component, and we have seen a strong bout of index-based selling ahead of Q3 earnings. So, we would hardly see the stock’s action as having anything to do with its recent press.
Nonetheless, this is a sign of a healthy corporate culture.
“Cisco has focused on expanding its third-party ecosystem and partnerships to enhance its security offering. ISE already works closely with other Cisco technologies such as Talos (threat intelligence organization), Stealthwatch, Advanced Malware Protection (AMP), and Firepower next-generation firewall and intrusion prevention technologies,” said Tony Massimini, Cybersecurity Senior Industry Analyst, Frost & Sullivan. “Unlike competitors that deliver point solutions, ISE is the centerpiece of a complete security strategy framework that covers the campus, network, data center, and cloud. Consequently, Cisco’s total security segment grew by 9.3% in fiscal 2017, while the total corporate revenues dropped by 4.2%.”
Cisco Systems, Inc. (NASDAQ:CSCO) pulled in sales of $12.8B in its last reported quarterly financials, representing top line growth of 5.9%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($46.5B against $27B).