Cisco 2006 Annual Report Download - page 12

2006 Annual Report 15
Cisco is also committed to education. Our company supports Networking Academy programs in more than 160
countries, with approximately 10,000 academies and over 430,000 students. Students in high schools, technical
schools, colleges, and community organizations learn hands-on networking skills to prepare for the workforce of today
and the future. The Jordan Education Initiative, spearheaded by Cisco in partnership with the World Economic Forum
and several other organizations, continued its momentum of expanding its interactive e-curriculum-based education
programs by moving into new geographic areas such as Egypt and India. The education initiatives in the Mississippi
and Louisiana school systems after Hurricane Katrina are rebuilding schools for the 21st century. These are all examples
of how technology has the power to change the way people work, live, play, and learn. More importantly, it can actually
improve lives.
Looking Back
Looking at all that was achieved in fiscal 2006, it is hard to imagine the humble beginnings of Cisco. When John
Morgridge became president and CEO in 1988, Cisco’s annual revenues were $5 million, less than 0.02 percent of
our annual revenues today. We were a competitor in the single product category of routing, and our entire corporation
employed only 29 employees. At the time, we were thrilled to have a customer, any customer, visit our modest offices
in Menlo Park.
Today, we are a global company with a strong and diverse product line and annual revenues approaching $30 billion.
We are proud of our position as the number 1 or number 2 competitor in almost every technology segment in which
we compete. In the last year, our San Jose headquarters was visited by hundreds of business, government, and tech-
nology leaders, including U.S. President George Bush and Britain’s Prime Minister Tony Blair. Cisco’s operations on a
global basis now reach geographies that we considered previously unreachable. We employ approximately 50,000 of
the best and brightest talent in the world. We continue to grow our technological capabilities to meet new challenges
and state-of-the-art applications.
At this year’s annual meeting in November 2006, John Morgridge will step down from his day-to-day responsibilities
as chairman of the board. We thank John for his many years of service to Cisco, and for his invaluable contributions to
our business as well as the fundamental nature of our culture. When you look at Cisco’s success, John Morgridge has
played a key role in making that happen, including the business results, management evolution, and the development
of a distinctive corporate culture. He will continue to serve as chairman emeritus and lead the Cisco Systems Founda-
tion. At that time, John Chambers will assume the role of chairman and CEO. On behalf of the board of directors, it
has been our distinct honor to serve at the request of the shareholders. We wish to thank our customers, partners,
employees, and shareholders for their continued trust, confidence, and support as we move into the next exciting
phase of Cisco’s history.
John T. Chambers
President and Chief Executive Ofcer
John P. Morgridge
Chairman of the Board