News Update: Barclays Capital Says New CRS-3 Unlikely to Sustainably Boost Cisco's Market Share

3/9/2010-Barclays Capital said Tuesday that the launch of Cisco's (NASDAQ:CSCO) new CRS-3 router, which was announced earlier today, is unlikely to sustainably boost the company's 55% market share.

Equity analyst Jeff Kvaal said, "Cisco today launched a very powerful new CRS-3 router, an anticipated upgrade to the six-year-old CRS-1 core router launched in 2004. In conjunction with the launch, Cisco announced that AT&T is in field trials with the CRS-3-- Cisco has a particularly strong relationship with AT&T, so the trial makes sense in our view. Overall, we believe the announcement may drive modest share gains for Cisco as the product ramps, but material share shifts are unlikely. We anticipate trials are likely to persist for much of calendar 2010, with initial revenues likely to begin in Q1 to Q2 of fiscal 2011, and material revenue contributions likely ramping in calendar 2011."

Kvaal added, "Typically, we consider new products most likely to drive refreshes of the existing installed base, and market share gains to a much lesser extent."

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