Cisco is looking to expand into the consumer-electronics space. The company could well soon start to product such devices as radios, phones, and home-theater equipment. Cisco believes that due to an increasing interest by consumers in devices that connect to the Internet, there is a market for such devices as radios and phones being Internet connected. The company may also become a manufacturer of set-top boxes, or take over a company that makes them.

Last September, the company bought KISS Technology, a Denmark-based consumer-electronics company that specializes in networked-entertainment devices. The move was largely seen as a way for Cisco to develop entertainment products quickly.

Likely, Cisco will face stiff competition in what is considered a highly competitive market, dominated by major brands like Sony, Samsung, and Philips.