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Cisco Systems, Inc. (CSCO)

  • Apr. 23, 2013, 7:56 PM
    Telecom equipment and optical component makers fall in AH trading in response to Juniper's revenue miss and light Q2 guidance, and (in what's arguably the bigger news) AT&T's $2B/year capex budget cuts for 2014 and 2015. CSCO -1.8% AH. CIEN -2.5%. RVBD -1.4%. JDSU -3.4%. FNSR -1.3%. TLAB -1.6%. Many of these companies had surged last November when AT&T set lofty 2014/2015 capex targets. Other names that could fall tomorrow: INFN. FN. OPLK. CALX. ADTN.
    | Apr. 23, 2013, 7:56 PM | 1 Comment
  • Apr. 23, 2013, 3:15 PM
    'We are not interested in the U.S. market anymore," says Huawei VP Eric Xu. The U.S. government's hard-line stance towards the telecom equipment/IT giant (ostensibly due to to its Chinese military ties) is undoubtedly a major factor here. Xu also says Huawei is now aiming for 2017 enterprise sales of $10B, below a prior goal of $15B - its 2012 enterprise sales stood at $1.9B. Cisco (CSCO +1.4%), which has made it clear it considers Huawei a top rival, must be pleased with both remarks.
    | Apr. 23, 2013, 3:15 PM | 1 Comment
  • Apr. 18, 2013, 5:45 PM
    Once again this year, some enterprise IT names are falling in AH trading in response to a weak earnings report. This time, the culprit is IBM, which posted a huge revenue miss thanks in large part to a 17% Y/Y drop in hardware sales. Flat software sales didn't help either. Big Blue tried to put much of the blame on deal-closing/execution issues, but the fact U.S. federal and China were named as weak spots might have some investors an edge. EMC -1.3%. HPQ -1.1%. CSCO -0.7%. RHT -1.2%.
    | Apr. 18, 2013, 5:45 PM | Comment!
  • Apr. 10, 2013, 11:04 AM
    Adtran's (ADTN +13%) Q1 beat is contributing to strong gains in telecom equipment, chip, and component stocks, as investors take it as another sign of improving telecom capex going into earnings season. Adtran's remarks about strong demand from both U..S. and international carriers can't be hurting. CSCO +2.5%. CIEN +6.4%. JDSU +4.6%. ALU +4.6%. FN +4.8%. FNSR +6%. PKT +4.2%. RKUS +4.2%. JNPR +3.9%. CAVM +3%. INFN +2.9%. OCLR +4%. SONS +2.5%. 2013 has seen a string of rallies (I, II, III) tied to capex hopes.
    | Apr. 10, 2013, 11:04 AM | Comment!
  • Apr. 9, 2013, 5:42 PM
    John McCool, the sales chief for Cisco's (CSCO) Global Enterprise unit (though he was officially called the unit's CTO), is leaving the company. His position will be assumed by wireless sales VP Tom Wilburn. A 17-year-vet, McCool played a key role in the growth of Cisco's dominant Ethernet switching business. He was moved over to a sales role in 2011. Paul Mountford, another top enterprise sales exec, left last August.
    | Apr. 9, 2013, 5:42 PM | Comment!
  • Apr. 5, 2013, 8:24 AM
    Lazard cuts its price target on F5 (FFIV) to $100 from $115 following yesterday's AH Q2 warning. The related commentary was somewhat upbeat however as analyst Ryan Hutchison says the profit warning wasn't "company-specific" and notes F5 should benefit from "several meaningful tailwinds" including a "major product refresh and Cisco's (CSCO) exit from the market." Nonetheless, shares are -17% premarket. 
    | Apr. 5, 2013, 8:24 AM | Comment!
  • Apr. 4, 2013, 4:38 PM
    F5 (FFIV) resumes trading and is currently at $75.85, down 16.1% AH in response to its FQ2 warning, which (in the wake of Oracle's results) is bound to heighten concerns about U.S./European enterprise IT demand. Rivals and peers are off in sympathy: CSCO -2.3%. RVBD -3.7% CTXS -3.7%. JNPR -5.1%. VMW -2.2%. EMC -0.9%. RHT -1.7%.
    | Apr. 4, 2013, 4:38 PM | Comment!
  • Apr. 3, 2013, 9:59 AM
    Though Cisco (CSCO) insists it has no intention of entering the traditional base station market (citing commoditization), its acquisition of small cell base station vendor Ubiquisys makes it more of a mobile infrastructure rival to Alcatel-Lucent (ALU) and Ericsson (ERIC) than ever. The combination of Ubiquisys' 3G/4G small cell solutions and Cisco's Wi-Fi hardware should eventually give it an end-to-end offering to take on market leader ALU's lightRadio line. Cisco is also pushing its new Quantum software suite (the result of the BroadHop/Cariden/Intucell deals) to mobile carriers.
    | Apr. 3, 2013, 9:59 AM | 2 Comments
  • Apr. 3, 2013, 8:41 AM
    Cisco (CSCO) has agreed to acquire U.K.-based Ubiquisys for $310M and retention-based incentives in a deal that is designed to strengthen Cisco's femtocells offerings, which help improve connectivity on 3G and LTE networks. The transaction adds to Cisco's purchase of Intucell for $475M and of BroadHop in January, both of which also expanded Cisco's mobile infrastructure business. (PR)
    | Apr. 3, 2013, 8:41 AM | Comment!
  • Apr. 2, 2013, 4:01 PM
    Juniper (JNPR -1.5%), Allot (ALLT -1.4%), Procera (PKT -1.9%), and BroadSoft (BSFT -0.1%) close lower after Pac Crest's Brent Bracelin cuts his estimates, citing European macro concerns. Though Pac Crest's research suggests the world's 15 biggest carriers (outside of China) could increase capex by 10% this year, it also indicates over half of the growth is expected to come from European carriers, and "there still appears to be a gap between talk and placing orders." Bracelin sees Cisco (CSCO - only 30% of revenue from carriers) as relatively insulated. (previous)
    | Apr. 2, 2013, 4:01 PM | Comment!
  • Apr. 1, 2013, 2:46 PM
    Though software-defined networking (SDN) will "shift some value to software," there will still be "hardware innovation, especially in network elements where performance, latency and resiliency matter," argues UBS in a defense of Cisco (CSCO). The firm also sees incumbent hardware vendors maintaining some software value-add - Cisco is moving aggressively here, but there's plenty of competition - and (in the wake of Oracle/Acme Packet and VMware/Nicira) predicts a pickup in "cross-sector M&A" in the networking space. (FBR)
    | Apr. 1, 2013, 2:46 PM | Comment!
  • Mar. 29, 2013, 8:54 AM
    Cisco (CSCO) bumps its quarterly dividend 21% to $0.17/share. "We are increasing our dividend as part of our strategy to deliver a consistent return to shareholders in line with our capital allocation commitment." The annualized yield on the stock is now 3.25%. (PR)
    | Mar. 29, 2013, 8:54 AM | 12 Comments
  • Mar. 28, 2013, 6:30 PM
    Cisco (CSCO) cut ~500 jobs (less than 1% of its workforce) this week, something the networking giant calls "a limited restructuring." Sources tell Network World "officials involved in Cisco's alliance with EMC" and other data center initiatives were affected. Cisco blogger/critic Brad Reese reports hearing 3 execs tied to the EMC partnership were among those laid off. Both Cisco and EMC execs recently had good things to say about their VCE JV, but the business has seen big cumulative losses, and the Cisco/EMC partnership has become thornier as of late.
    | Mar. 28, 2013, 6:30 PM | Comment!
  • Mar. 26, 2013, 2:29 PM
    Following the lead of VMware's (VMW) Nicira unit, startup Big Switch Networks is rolling out a software-defined networking (SDN) platform it argues will cut dependence on proprietary switches from the likes of Cisco (CSCO) and Juniper (JNPR). Big Switch's platform, called Switch Light, can be used either with commodity switches running on BRCM chips, or "virtual" switches running Linux (BRCD has ambitions here). Unlike Nicira, which only partly leverages the OpenFlow SDN standard, Big Switch is fully throwing its weight behind OpenFlow, and is offering an open-source version of Switch Light to drive its adoption. (FBR)
    | Mar. 26, 2013, 2:29 PM | 3 Comments
  • Mar. 25, 2013, 1:58 PM
    Cisco (CSCO +1%) continues to look overseas for M&A targets: the company discloses it has bought SolveDirect, an Austrian provider of cloud-based software for integrating IT services. Cisco, which is looking to both software and services for growth, talks up SolveDirect's ability to automate service integration, and says its offerings will bolster its IT service portfolio. John Chambers recently stated Cisco will continue acquiring overseas until it can repatriate offshore cash at a lower tax rate.
    | Mar. 25, 2013, 1:58 PM | 3 Comments
  • Mar. 24, 2013, 8:30 AM
    "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%.
    | Mar. 24, 2013, 8:30 AM | 80 Comments
Company Description
Cisco Systems Inc is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.