with sales rising 27%. John Chambers

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Regardless of the growth rate, Cisco is a cash machine, piling up more than $39 billion in cash and investments as of July 31. And after years of paying no dividend, Chambers is making noises about a payout.
Cisco’s earning yield is close to 6% and isn’t bad for such a high-quality company.

If Cisco share price continue to bounce around, snagging some closer to $20 could be a bargain.
Over time, that would make Cisco shares more attractive under YCharts’ proprietary investment model, which currently rates the company’s fundamentals as good, and finds the shares overpriced, but by a tiny amount.

Revenue,[link widoczny dla zalogowanych], after a dip around the financial crisis, is rising again. The fiscal fourth quarter, ended July 31, was particularly strong, with sales rising 27%. John Chambers, CEO, says Cisco is positioned to grow faster than the overall market. (Ever heard a CEO say his company wasn’t?)
Chambers is particularly excited about selling equipment and systems that handle data-rich video, and that’s a growth area. But in fiscal 2010, the old warhorse, switches, powered Cisco’s growth, with sales rising 12% to $13.6 billion.
Cisco Systems (CSCO) in recent years has been a stock sliding sideways, a not-so-sexy manufacturer of routers and switches that make vast IT systems function.

Profits have been growing nicely, even if the stock didn’t move much.
As a manufacturer, with big fixed costs, when sales rise a bit, profits rise more swiftly �leverage�so an 11% rise in sales in fiscal 2010 yielded a 28% increase in profit. Chambers, pushing hard for faster growth, spent about $6.2 billion on acquisitions in the fiscal year.
It’s all encouraging. But Cisco is in a tough industry with stiff competition. Even though its equipment boosts corporate productivity, the stuff doesn’t sell itself. Cisco spent $8.7 billion on sales and marketing during the year to bring in $40 billion in revenue.
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