O.K. Not to question Chambers' judgement, but why did Cisco just
purchase a company for $2 billion when its FY 98 revenues are just
$45 million. That's 44 times 12 month revenues. I know GEOC is a
great company with a great future, but doesn't the price seem
a bit excessive? I think the market must be thinking the same thing,
because Cisco stock got dinged for this acquisition, while prior
acquisitions didn't move the stock at all. Once again, great
company to have bought, but the price may have been too steep.
GEOC I/S from 10K:
(in thousands) 1998 1997 1996 1995
------- ------- ------ -------
Revenues $44,852 $18,611 $9,047 $ 1,534
Gross profit 36,379 15,027 7,336 659
------ ------ ----- -------
Net inc(loss) 9,039 6,253 754 (3,862)
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