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Cisco Systems, Inc. (CSCO)

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  • Mar. 21, 2013, 10:52 AM
    More on FBR's downgrades of Cisco (CSCO -3.5%) and Juniper (JNPR -3.3%): the firm sees the adoption of software-defined networking (SDN) leading to a 40% reduction in switch/router ports deployed by service providers/large enterprises over the next 18-36 months. Though SDN can improve network efficiency, that forecast is more aggressive than most. Also, like others, FBR sees SDN adoption driving sales of commodity, low-margin switches at the expense of Cisco/Juniper's proprietary gear. Cisco is trying to respond to the threat with an SDN platform that requires plenty of software licenses. (Juniper's strategy)
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  • Mar. 21, 2013, 8:17 AM
    Cisco (CSCO) is downgraded to Sell at FBR Capital, which says the company will find it difficult to offset weakening router and switching demand. Negative tech trends "could significantly blur the lines between routers, switches, AND servers." FBR throws in a downgrade of Juniper Networks (JNPR) as well. Both are down more than 1% premarket.
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  • Mar. 20, 2013, 7:08 PM
    Cisco's (CSCO) software push extends to its slumping collaboration systems unit: a product refresh includes software for adjusting the resources allocated to collaboration gear based on device type, and integrates Cisco's WebEx  online conferencing software with its TelePresence hardware - WebEx users can be patched into TelePresence meetings, and content shared between the platforms. Cisco's collaboration sales fell 11% Y/Y in FQ2, and have been pressured by upstarts such as Vidyo and Blue Jeans Network. Rival Polycom (PLCM) has also been struggling.
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  • Mar. 18, 2013, 2:31 PM
    JDS Uniphase (JDSU -1.4%) and Oclaro (OCLR -1.7%) are off modestly after Cisco (CSCO) announces a 100G silicon optical transceiver it claims offers a 70%+ cut in space/power needs relative to traditional solutions. A 100G line card for a Cisco optical transmission/switching system will be the first product to use one, but the networking giant promises "future routing and switching line cards" will also rely on them. JDS, Oclaro, and Finisar (FNSR +0.1%) have all been pressured by concerns over the adoption of silicon photonics tech, but opinions vary about the near-term impact.
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  • Mar. 14, 2013, 3:48 PM
    VirnetX (VHC -29.7%) has lost its infringement suit against Cisco (CSCO), as the jury deliberating over the suit rules against the company. VirnetX, which had been seeking $258M in damages for infringement of its VPN IP, is likely to appeal. Shares are cratering in the meantime. (earlier)
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  • Mar. 13, 2013, 4:34 PM
    Riverbed (RVBD -3.2%) gradually sold off after Wunderlich raised concerns about the impact of Cisco's (CSCO) ISR-AX integrated services routers, which include WAN optimization support. Cisco claims its solution, which places ISR-AX routers in data centers and relies on software to provide WAN optimization to branch offices, is 20%-35% cheaper than solutions (such as Riverbed's) that place appliances in branch offices. Riverbed, which has fended off Cisco's integrated offerings thus far, will doubtlessly argue dedicated hardware yields superior performance.
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  • Mar. 13, 2013, 1:16 PM
    EMC (EMC +2.5%) guides during its investor day for 9% annual revenue growth over the next 5 years. The Street is currently expecting 8% growth for both 2013 and 2014. Shares are higher thanks to the guidance, VMware's rally, and the Pivotal announcement. Also: CEO Joe Tucci predicts EMC and Cisco's (CSCO) VCE JV will "far exceed" $1B in revenue this year - John Chambers recently stated VCE, 58%-owned by EMC and 35%-owned by Cisco, is on a $1B+ run rate.
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  • Mar. 13, 2013, 10:05 AM
    In addition to the Pivotal announcement, VMware is: 1) Outlining plans to integrate the networking virtualization software found in its giant vCloud Suite with Nicira's software-defined networking platform. An integrated product called NSX will launch in 2H. EMC partner Cisco (CSCO) can't be thrilled. 2) Confirming the launch (previous) of a cloud infrastructure service that allows clients to gradually move private workloads to a VMware-run public cloud, while jointly managing the two. Called vCloud Hybrid Service, the business will be run by former Savvis president Bill Fathers.
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  • Mar. 12, 2013, 11:38 AM
    Cisco (CSCO -1.2%) follows tech lower after receiving a downgrade to Hold from Standpoint Research. The downgrade comes as Cisco updates its integrated services router (ISR) line to support application monitoring services. The update is another sign of Cisco's software/services push, and (as CRN observes) helps address the spread of apps arriving on corporate networks thanks to the BYOD trend and the adoption of cloud services. Cisco's ISR line also features WAN optimization support, making it a rival to Riverbed's (RVBD) Steelhead appliances.
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  • Mar. 9, 2013, 4:50 PM
    Synergy Research has good and bad news for Cisco (CSCO). The good: Cisco's collective share of the 6 largest enterprise networking segments - Ethernet switches, telephony, routers, unified communications, Wi-Fi, and telepresence - rose slightly in 2012 in spite of tough competition from rivals large and small. The bad: total revenue for those markets fell 2%. Hence the emphasis Cisco is placing on software and services as growth drivers. The company recently unveiled Quantum, a software suite for mobile carriers that features products from recent acquisitions (I, II, III).
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  • Feb. 28, 2013, 1:34 PM
    Server sales rose 3.1% Y/Y in Q4 after falling 4% in Q3, says IDC. But nearly all of this growth went to non-top-5 OEMs, thanks to the do-it-yourself approach of Web/cloud firms behind most of the increase. Sales of the "densely optimized servers" these firms often prefer rose 66%. #1 IBM's share was flat Y/Y at 36.5%, but #2 H-P's (HPQ) fell 160 bps to 24.8% thanks to weak high-end sales. #3 Dell (DELL) +30 bps to 15.1%, #4 Oracle (ORCL) -110 bps to 4.1% (poor UNIX demand). Fujitsu is #5, and Cisco (CSCO), whose UCS blade server sales are soaring, is now #6.
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  • Feb. 21, 2013, 11:25 AM
    On its FQ2 call, Cisco (CSCO) boasted its VCE JV - 58%-owned by EMC, 35%-owned by Cisco - is now on a $1B+ run rate. But as ZDNet's Larry Dignan observes, Cisco and EMC's latest 10-Qs (I, II) indicate the JV has generated huge losses since its '09 inception. EMC claims a $430M cumulative loss for its stake in VCE, and Cisco a $325M loss. Last year, Gartner estimated VCE generated $222.9M in sales (+53% Y/Y) in Q2 '12 for its costly Vblock server/storage/networking systems.
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  • Feb. 20, 2013, 1:06 PM
    More on H-P: The company is also refreshing its networking lineup, which has been taken some share from Cisco (CSCO) in recent years. An integrated wireline/Wi-Fi switch (competes with Cisco and Aruba) has been rolled out, and so has a high-end Ethernet switch with software-defined networking support. H-P's enterprise hardware sales fell 9% Y/Y in FQ3, but networking sales rose 7%. FQ1 results arrive tomorrow.
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  • Feb. 15, 2013, 12:44 PM
    "If the majority of our money remains outside the U.S. .... that's where you'll see us acquire going forward," says John Chambers, suggesting Cisco (CSCO) won't make a major U.S. acquisition unless it can repatriate offshore cash (currently 80% of its balance) at a lower tax rate. Both of Cisco's 2013 acquisitions - Cognitive Security and Intucell - have involved foreign companies, and so did its largest 2012 acquisition (the $5B purchase of NDS). (previous)
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  • Feb. 14, 2013, 11:05 AM
    Up strongly over the last 3 months, Cisco (CSCO -1.5%) is off modestly after beating FQ2 estimates, issuing in-line guidance, and offering mixed commentary about product sales and demand trends. Nomura (Buy) thinks there's upside to gross margin guidance, and is encouraged by Cisco's aggressive software-defined networking product launches. The firm also notes commentary on EMEA was "more constructive than in prior quarters," even if regional orders fell 6% Y/Y. However, China (orders -4%) is expected to remain challenging for a few quarters. (transcript)
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  • Feb. 13, 2013, 6:05 PM
    More from Cisco's (CSCO) call: FQ2 router sales -6% Y/Y, partly blamed on lumpy service provider orders. Switches were better, +3%. Service provider video (-1% exc. NDS) and security (+1%) were ho-hum, and collaboration (-11%) remains weak. Data center (UCS server) sales soared 65%. Wi-Fi was strong (+27%), but growth slowed from FQ1's +38%. Services +10% and still growing as a % of sales. Americas orders +2% (enterprise strength, federal weakness) and Asia-Pac +3%, but EMEA -6%. Cisco and EMC's VCE JV is on a $1B+ run rate. Shares -1.8% AH. (FQ1 data) (earlier)
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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.