Cisco 2004 Annual Report Download - page 11
Download and view the complete annual report
Please find page 11 of the 2004 Cisco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.14CISCOSYSTEMS,INC.
CiscoCRS-1CarrierRoutingSystem.Thesesolutions
continuetoprovidesignificantperformanceenhance-
ments,oftenwithpricereductions,ensuringthe
balancebetweencustomersuccess,Cisco’sprofitability,
andourleadershipinthemarketplace.
Asignificantgrowthopportunitycontinuestobein
theserviceprovidermarket,wherewehavemade
significantinvestmentsoverthepastseveralyears.
Fiscal2004wasasuccessfulyearforusinthismarket.
Weexpandedourserviceprovidercustomerbasein
allgeographies,byofferingacombinationofcapabili-
tiesthatcanhelpthesecustomersbuildpacket-based
networks,deployrevenue-generatingservicesover
thosenetworks,andacceleratedemandfrom
businessestousethoseservices.Wearepleased
withourabilitytowinarchitecturalbuild-outs,
aswellascollaboratewithmajorplayersinthis
market,andareexcitedbytheopportunities
weseeinfiscal2005asthecapitalspending
environmentimproves.
AdvancedTechnologiesexceededour
expectationsintermsofrevenuegrowth
andmarketacceptanceduringfiscal2004.
ThesixAdvancedTechnologiesweiden-
tifiedlastyearinclude:homenetworking,
IPtelephony,opticalnetworking,security,
storageareanetworking,andwireless
technology.Revenuefromthesemarkets
increasedyear-over-yearbyapproximately
70percent,duetogrowthinallareas.We
reachedseveralmilestonesinthesemarkets
duringfiscal2004,suchasshippingour3
millionthIPphoneandreaching$1billionin
annualrevenuerunratefromoursecurity
business.Whilewebelieveeachofthesesixmarkets
hasthepotentialtogrowintoabillion-dollarbusiness,
wewillcontinuetolookforopportunitiestoexpand
intoadditionalAdvancedTechnologyareasoverthe
nextseveralyears.
InnovationhasbeenamajorcomponentofCisco’s
successoverthelast20yearsandisintegraltoour
growthoverthenext20.Ourabilitytoinnovate
internallyand,atthesametime,formstrategic
alliancesandsuccessfullyintegrateacquisitionswill
beacompetitiveadvantagethatwebelievewillac-
celerateourgrowthinnewandexistingmarkets.In
fiscal2004,wecontinuedtocollaboratewithour
alliancepartnersinordertoadvanceandaccelerate
ourgrowthopportunities.WealsoacquiredAndiamo
Systems,LatitudeCommunications,Riverhead
Networks,andTwingoSystemsduringthefiscal
year,andclosedActonaTechnologies,Parc
Technologies,andProcketNetworksinearly
fiscal2005.Theseacquisitionsbringleading-
edgetalentandtechnologytoCisco’sfamily,
enhancingbothourcoremarketsandour
newareasofgrowth,includingIPtelephony,
security,andstorageareanetworking.
Webelieveitisverydifficulttoachievethe
typeofgrowththatCiscohasachieved
withouttakinggoodbusinessrisks.Taking
goodbusinessrisksisanintegralpartofour
growthstrategy,andyoushouldexpectCisco
tocontinuetobeaggressiveinourbusiness
strategyandconservativeinourfinancialreporting.
DONALDT.VALENTINE
VICECHAIRMANOFTHEBOARD