Fri, Sep. 23, 7:30 PM
- Cisco Systems' (CSCO -1%) ongoing appetite for snapping up companies -- with Imperva perhaps next -- shouldn't worry dividend-focused investors, analysts say.
- The company raised its dividend 24% in February, to $0.26/quarter; forward yield now is 3.28% -- still higher than Intel's (2.77%), Microsoft's (2.7%) and Apple's (1.99%).
- Cisco's expected to keep generating free cash flow, and much of its cash on hand is overseas (only $6B held domestically). Moody's analyst Richard Lane expects the company will generate about $7B in free cash flow each year and "management will retain significant liquidity and financial flexibility."
- And the company's move up the stack -- toward more software and services -- should keep pushing profit margin expansion, along with the company's job cuts.
- Previously: Salesforce, Cisco enter into strategic alliance (Sep. 22 2016)
Thu, Sep. 22, 9:33 AM
- Solutions to be developed by both companies to bring Salesforce's (CRM +1.2%) Sales Cloud, IoT Cloud and Service cloud together with Cisco Systems' (CSCO +0.5%) collaboration, IoT and contact center platforms.
- Connected device and customer experience use cases highlighted.
- Cisco: "Our goal is for technology to fade into the background so people can get their best work done. Cisco and Salesforce coming together to form a strategic alliance can eliminate the friction users experience today so they can become more productive."
- Salesforce: "Nothing is more important than making our customers more successful. We're thrilled to announce this strategic alliance with Cisco, which will simplify the customer experience across sales, service and IoT and empower our mutual customers to be far more productive."
- Collaboration and IoT integrations to become in available in H2 2017 with Cisco Unified Contact Center Enterprise and Salesforce Service cloud integrations available today.
Wed, Sep. 14, 7:03 PM
- An outlook for slightly higher demand in a few sectors leads Deutsche Bank to give a small bump to its price target on Cisco Systems (CSCO -0.2%).
- The firm lifted its target to $37, from $35, implying just over 19% upside from today's close.
- Headwinds abound for analyst Vijay Bhagavath, including smaller deals, a back-loaded year for service provider upgrades and some near-term weakness in Europe and emerging markets.
- But plays in new growth areas -- cloud security, advanced services, big data analytics, machine learning, and cloud automation tools -- are "likely to be viewed positively by investors given their above corporate margin contribution to FY17+ fundamentals," he says. Valuing the company as a "systems" business leaves potential for rerating its multiple in the future.
Mon, Sep. 12, 5:49 PM
- Cisco Systems (CSCO +1.9%) can still meet profit guidance even if it lowers a long-term revenue outlook, says UBS in raising its price target on the stock.
- UBS boosted its target to $35, from $32, implying 11% upside from today's closing price.
- The company's moving up the stack, analyst Steven Milunovich notes, to provide more software, security and analytics -- which could bring more deferred revenue growth. Long-term, revenue growth targets of 3%-6% could get cut to 2% to 4%.
- But "the previously articulated 5% to 7% EPS growth still looks attainable over the next three years," Milunovich writes.
Fri, Sep. 9, 11:25 PM
Thu, Sep. 8, 7:13 PM
- Cisco Systems (CSCO -1%) says in a filing that it won't face action from U.S. authorities tied to a multi-year investigation of its business in Russia.
- The SEC and Department of Justice asked the company to investigate allegations regarding the U.S. Foreign Corrupt Practices Act in Russia and certain countries in the Commonwealth of Independent States, a probe it disclosed in 2014.
- Cisco says it cooperated fully with the authorities and: "Based on the investigation results, both the SEC and the Department of Justice have recently informed us that they have decided not to bring enforcement actions," Cisco says in the 10-K filing.
Tue, Aug. 30, 8:23 PM
- Cisco Systems (NASDAQ:CSCO) is buying software-container start-up ContainerX, a firm just 18 months old.
- ContainerX had previously raised $2.7M in a funding round. It developers containers for packaging software applications for installation and deployment across various data centers and the cloud.
- Terms were undisclosed.
Tue, Aug. 23, 2:26 PM
- The U.S. Trade Representative has upheld an import ban on Arista Networks (ANET +0.9%) products recommended by the International Trade Commission -- a result of a finding that Arista infringed on patents owned by Cisco Systems (CSCO +1%), Cisco says in a blog entry.
- In June, the ITC upheld a February decision that Arista infringed on three of Cisco's patents.
- "The ITC ruling documents that Arista set out to use Cisco’s technology, knowing exactly what it was doing," writes Cisco's Mark Chandler.
- "Arista has also noted in several public forums that it intends to continue selling the affected products," he continues. "It does this without any ITC or CBP approval. If Arista does not change its course, Cisco will bring an enforcement action in the ITC later this week."
Wed, Aug. 17, 4:41 PM
- Cisco Systems (NASDAQ:CSCO) has pared postmarket losses, now down just 0.8% after it posted its fiscal Q4 beat along with confirmation that it's cutting 7% of its workforce.
- Gross and operating margins increased -- to 64.6% and 31.4% respectively, on a non-GAAP basis, with the help of productivity improvements and product mix, partly offset by pricing.
- Revenue breakout: Product, $9.55B (down 3.6%); Service, $3.09B (up 5.3%). By geography: Americas up 3%; EMEA up 3%; APJC down 2%.
- Cash flow from operations rose sequentially to $3.8B from Q3's $3.1B, but was down slightly from the prior year's $4.1B.
- Deferred revenue was up 8% to $16.5B, with increases in subscription-based and software offerings contributing. Product backlog was about $4.6B, up about 1% Y/Y excluding the SP Video CPE business, which was divested in November.
- "I am particularly pleased with our performance in priority areas including security, data center switching, collaboration, services as well as our overall performance, with revenues up 2% in Q4 excluding the SP Video CPE business," said CEO Chuck Robbins.
- Conference call link
- Press release
Wed, Aug. 17, 4:11 PM
- Cisco Systems (NASDAQ:CSCO) has slipped 1.5% after hours in the immediate aftermath of fiscal Q4 earnings where it beat expectations and confirmed coming layoffs, of some 5,500 positions -- about 7% of its workforce.
- Earlier reports suggested the company plans to cut more than 14,000. "Today, we announced a restructuring enabling us to optimize our cost base in lower growth areas of our portfolio and further invest in key priority areas such as security, IoT, collaboration, next generation data center and cloud."
- Its financials beat expectations on top and bottom lines, though revenue dropped 1.6% from the prior year. Non-GAAP net income rose 7% and EPS was up 9% Y/Y.
- For Q1, it's expecting flat revenues: growth of -1% to 1% Y/Y, and EPS (non-GAAP) of $0.58-$0.60 vs. consensus for $0.60.
- Conference call to come at 4:30 p.m. ET.
- Press release
Wed, Aug. 17, 4:06 PM
Wed, Aug. 17, 2:04 AM
- Shifting its focus away from hardware, Cisco (NASDAQ:CSCO) is reportedly laying off upward of 14,000 employees, representing nearly 20% of the networking giant's global workforce.
- "They need different skill sets for the software-defined future than they used to have," sources told CRN.
- Cisco is expected to announce the cuts within the next few weeks and many early retirement package plans have already been offered to employees.
Tue, Aug. 16, 5:35 PM
Mon, Aug. 15, 5:31 PM
- Barclays has raised its price target on Cisco Systems (CSCO +1%) ahead of earnings, suggesting that valuation looks at the company might need to evolve the way they have for Microsoft.
- Analyst Mark Moskowitz has an Overweight rating on the stock and bumped his price target to $34 from $31, implying 9% upside from today's closing price.
- "Relative stability in margin and cash flow metrics, alongside being better levered to the cloud, have in part helped rerate Microsoft's valuation metrics," Moskowitz says. "With technology categories converging due to the cloud, we think a similar argument can be made for Cisco's valuation metrics to be the next large-cap tech stock to rerate higher."
- There are still differences, he notes; such a rerating would likely still leave Cisco's P/E gains less than Microsoft's multiple has shown over the past 24 months, as the company is still closer in make-up to IBM than Microsoft.
- Cisco's due to release its fiscal Q4 earnings after the closing bell Wednesday; analysts are expecting (non-GAAP) EPS of $0.60 on revenues of $12.572B.
Mon, Aug. 8, 5:52 AM
- The Rio 2016 Olympics are shaping up to be key event in the sponsorship calendar with brands battling it out for a slice of the sporting pie.
- Among the partners, sponsors and supporters: KO, DOW, GE, MCD, PG, V, CSCO
- The U.S. has taken an early lead in the medal tallies boosted by strong results from swimmers Michael Phelps and Katie Ledecky.
Tue, Aug. 2, 9:02 AM
- July monthly performance was: +3.84%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in July
- Top 10 Holdings as of 3/31/2016: Public Storage (PSA): 2.03299%, SkyCity Entertainment Group Ltd (OTCPK:SKYZF): 2.02912%, CYS Investments Inc (CYS): 1.99742%, Cisco Systems Inc (CSCO): 1.97543%, Vestas Wind Systems A/S (OTCPK:VWSYF): 1.96004%, Intrum Justitia AB (IJ): 1.9455%, Bezeq The Israeli Telecommunication Corp Ltd (OTCPK:BZQIF): 1.94472%, SSE PLC (OTCPK:SSEZF): 1.93715%, Annaly Capital Management Inc (NLY): 1.93635%, Spark New Zealand Ltd (OTCPK:NZTCF): 1.92084%