Cisco Begins Shipping Gigabit Products

Cisco Systems Inc. said it began shipping its newest high-speed computer-networking equipment, ahead of a standard for the technology, as several of its rivals have unveiled similar products. Cisco’s news comes one week after Chief Executive John Chambers acknowledged that the company is late with its roll-out of the so-called gigabit ethernet switches, and just days after a technical snag delayed the standard for at least three months. Gigabit ethernet products transfer data on computer networks 10 times faster than existing switches for a fraction of the cost. The No. 1 networking company previously said it would wait to ship the products until after the standard was adopted, even as competitors 3Com Corp., Bay Networks Inc. and Cabletron Systems Inc. moved to ship gigabit switches. Cisco said it changed direction as customers began to ask for the products. Shares of San Jose-based Cisco rose 75 cents to close at $64.75 on Nasdaq. . . . In a related development, Cisco said it completed its purchase of closely held LightSpeed International Inc. for $194.3 million in stock, acquiring technology that helps phone companies combine voice and data communications. Cisco said it will take a charge of 16 cents to 18 cents a share for the purchase in its third quarter ending in April. Cisco and other large networking companies have been bolstering the product lines they sell to Internet service providers and phone companies, which are expected to generate a significant share of the industry’s sales growth in 1998.