Matt DiehlThursday December 8, 2011

Business Overview

• High-performance networking company• Sells products and services that provide

network infrastructure• Routing and switching products• Protect the network, enhance bandwidth, and

speeds up applications

Fundamentals

Fundamentals

SWOT (Strengths)

• Gained market share largely at the expense of Cisco

• One of the few financially healthy telecom vendors

• Strong growth and new technology over the next few years

SWOT (Threats)

• Competition with Cisco• Asian vendors• Alcatel-Lucent (ALU), Huawei• Riverbed Technology (RVBD)

SWOT (Weaknesses)

• Weak carrier demand• Macroeconomic issues• If new products don’t sell

Fair Value

• Current Price: $21.31• 52 Week Range: $16.67-$45.01• Fair Value: $30.00• Consider Buy: $21.00• Consider Sell: $40.50• 4 star Morningstar rating

YTD Chart

Checklist

Recommendation

• Buy• 100 shares• Take advantage of beat down of price• Price under the fair value and at the buying

recommendation