Cisco Systems

[CityFarmer]

I started a new thread for Cisco. The company performance serves as another indicator for global economic..., IMO

(not vested)

Cisco to cut 4,000 jobs despite a rise in Q4 profit

SAN FRANCISCO — Network equipment maker Cisco Systems yesterday said that it would cut 4,000 jobs, or 5 per cent of its workforce, as weaker sales in Japan, China and Europe weigh on revenue growth, and the company looks to reduce costs and refocus on growth areas as it faces uncertain demand for its networking equipment.

“The environment in terms of our business is improving slightly but nowhere near the pace that we want,” said Chief Executive John Chambers on a conference call following its quarterly earnings.

Shares of the world’s biggest network equipment maker fell 9 per cent after hours.

Cisco forecast 3 to 5 per cent revenue growth this quarter, towards the low end of expectations, as it continues to grapple with an uncertain global IT spending environment.

Executives also forecast earnings-per-share of 50 to 51 US cents in its fiscal current quarter.

Mr Chambers’ commentary on the global corporate IT environment is closely watched by investors, as Cisco is regarded a strong indicator of the general health of the technology industry because of its broad customer base.

http://www.todayonline.com/business/cisc...-q4-profit

[sgd]

I think I remember seeing 1 time in the aftermath of Sept 11 stock market crash cisco was trading at like $10 / shr & had like cash reserves ard $10bil tempted but also scared lah - alas ..

[CityFarmer]

Both Cisco and IBM performance, serve as good indicators for corporate capital expense. The corporate CAPEX doesn't seem as promising as the consumer spending, as of now...

Cisco to cut another 6,000 jobs as forecast falls flat

Cisco Systems Inc forecast tepid current-quarter results and said it plans to cut another 6,000 jobs, as the network equipment maker works through a transition toward a new cycle of high-end switches and routers.

The latest round of layoffs is at least the third workforce reduction in about as many years for a company once synonymous with the Internet boom, but which has lately struggled to sustain growth.

The company announced in August 2013 that it would cut 4,000 jobs. And in 2011, it said it planned to reduce its workforce by more than 11,000.
...
http://www.todayonline.com/business/cisc...er-revenue

[CityFarmer]

The emerging markets' IT capex still weak. Corporation still not willing to spend, amid uncertainties...

Weak telecom spending, emerging markets weigh on Cisco forecast

Network equipment maker Cisco Systems Inc forecast current-quarter profit below analysts' average estimate, weighed down by capital budget cuts at telecom service providers and weak sales in emerging markets.

Cisco's shares reversed course in extended trading following the forecast and fell 1 percent. They had risen after the company reported a better-than-expected revenue and profit for the first quarter.

"Service provider is the big challenge...that's due to two to three U.S. service providers who have dramatically slowed the order rates with us," Chief Executive John Chambers said on a post-earnings conference call with analysts.
...
http://www.todayonline.com/business/cisc...13-percent

[CityFarmer]

The disruption is fast and fierce, even to large tech companies. The cycle is shorten, and crueler to even top talents...

Cisco Systems to lay off about 14,000 employees: CRN
17 Aug 2016 14:08
[BENGALURU] Cisco Systems Inc is laying off about 14,000 employees, representing nearly 20 per cent of the network equipment maker's global workforce, technology news site CRN reported, citing sources close to the company.

San Jose, California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company transition from its hardware roots into a software-centric organisation.
...
REUTERS

Source: Business Times Breaking News