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Cisco Systems, Inc. (CSCO)

- NASDAQ
  • 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.
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  • 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)
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  • 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.
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  • 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%.
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  • Mar. 22, 2013, 4:36 PM
    A Delaware jury orders Cisco (CSCO) to pay $70M in damages to "expertise sharing" software/services firm XpertUniverse, deeming the networking giant guilty of fraudulently getting XpertUniverse to share trade secrets while simultaneously filing related patents. Cisco is also ordered to pay an entire $34K for infringing two XpertUniverse patents.
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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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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.