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Cisco Systems, Inc. (CSCO)

  • Nov. 29, 2012, 8:55 AM
    Cisco (CSCO) is acquiring Cariden Technologies, a provider of network management software for carriers, for $141M in cash + retention incentives. Cisco touts the capacity planning/optimization abilities of Cariden's software, which manages both routers and optical networking gear, and says it will complement its nLight platform for jointly provisioning both types of hardware. Cariden competes with OPNET (OPNT), which is set to be acquired by Riverbed (RVBD). Cisco bought two other network management software firms earlier this year (I, II).
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  • Nov. 21, 2012, 12:39 PM
    Software-defined networking (SDN) may be a threat to Cisco and Juniper, but it's an opportunity for Broadcom (BRCM), since it could boost the usage of commodity switches running on Broadcom's network processors. The EE Times reports Broadcom  is working with app developers and two unnamed OEMs to create an API that would support both traditional networks and the popular OpenFlow SDN standard. During Broadcom's Q2 earnings call, CEO Scott McGregor claimed his company is "working with pretty much everybody in the SDN space."
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  • Nov. 19, 2012, 5:47 PM
    Cisco (CSCO) might try to parlay its acquisition of Meraki and its subscription/cloud-based management software into a broader effort to provide such software for its networking gear and servers, thinks Wunderlich. John Chambers mentioned during last week's earnings call that Cisco wants to grow its recurring revenue streams. Light Reading, meanwhile, thinks Meraki's tech could open the door to more flexible network architectures that don't require dedicated hardware controllers.
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  • Nov. 19, 2012, 8:14 AM
    Aruba Networks (ARUN) -4.7% in response to Cisco's (CSCO) purchase of enterprise Wi-Fi equipment/security appliance vendor Meraki. Cisco was already Aruba's top rival in enterprise Wi-Fi, and the addition of Meraki's solutions - differentiated by cloud-based management software that lowers admin costs and installation times - is bound to make life tougher, particularly in the SMB space. NetGear (NTGR) could also be affected. Cisco's wireless sales rose 38% Y/Y last quarter; Meraki has 20K customers and says it's on a $100M/year run rate. (Cisco/ThinkSmart)
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  • Nov. 18, 2012, 7:33 PM
    Cisco Systems (CSCO) says it intends to buy enterprise Wi-Fi equipment startup Meraki for $1.2B in cash and retention incentives, and to make it into its Cloud Networking Group. The deal's expected to close in Q2 of Cisco's fiscal 2013 (which ends in January).
  • Nov. 16, 2012, 2:16 PM
    Gartner forecasts global enterprise IT spending will rise 2.5% next year to $2.68T. Investors should be aware these estimates get revised frequently - 4 months after hiking its 2012 IT spending growth forecast to 3%, Gartner claims 2012 will only see "scant overall growth" due to macro issues that have clearly pressured (I, II) many enterprise IT names. Decent IT spending growth from financial services, telecom, and media companies is expected to offset continued government weakness.
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  • Nov. 15, 2012, 6:45 PM
    More from Dell's FQ3 call and slides: Large enterprises (-8% Y/Y, +5% for enterprise solutions) are said to be deferring discretionary IT purchases; that's backed up by October's earnings reports. Dell was a little more positive about SMBs (-1%, +15% for ES). Sales of DCS servers, used by Internet companies for "scale-out" deployments, rose 126% Y/Y. Networking +40%, boosted by Force10. More than one analyst suggested a big change is needed in PC strategy: cost cuts, price cuts (to maintain scale), and a retreat from the consumer market were among the suggestions.
  • Nov. 15, 2012, 5:46 PM
    Cisco Systems, Inc. (CSCO) declares $0.14/share quarterly dividend, in line with previous. Forward yield 3.13%. For shareholders of record Nov. 29. Payable Dec. 19. Ex-div Nov. 27. (PR)
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  • Nov. 15, 2012, 9:13 AM
    Cisco (CSCO) is spending $125M to buy Cloupia, a developer of software that automates the installation/configuration of data center hardware. Cloupia's software complements Cisco's Nexus data center switches and (especially) its fast-growing UCS server line. Compared with server market leaders IBM, H-P, and (Quest Software buyer) Dell, systems management software had been something of a weak spot for Cisco. (PR)
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  • Nov. 14, 2012, 10:36 AM
    Pac Crest's Brent Bracelin has upgraded Cisco (CSCO +6.4%) to Buy in response to its solid FQ1 results and FQ2 guidance. Cisco "could grow in 2013 and have stable to improving gross margin for the first time in two years," thinks Bracelin. Piper likes Cisco's sales execution and cost controls, and FBN notes shares trade at 5x EPS exc. cash. Europe is still a concern for many. FFIV +4%. JDSU +2.7%. XLNX +2.8%. BRCM +1.8%. CAVM +6.9%. FTNT +3.3%. ARUN +4.6%.  (CC comments: I, II) (transcript)
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  • Nov. 14, 2012, 9:10 AM
    Premarket gainers: ANF +32%. TCX +21%. ZAZA +8%. CSCO +7%. FRO +7%. ARO +7%
    Losers: IAG -8%. SNE -7%. MOS -5%.
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  • Nov. 13, 2012, 7:04 PM
    A few more details from Cisco's (CSCO) FQ1 call: Analysts were surprised by Cisco's light FQ2 gross margin guidance, in light of FQ1's margin strength. Cisco attributed the guidance to a mix shift and noted its UCS server line, which carries relatively low margins, is growing rapidly. John Chambers claimed Cisco is competing better with Huawei (still a concern for many) than it was 12-18 months ago. He reaffirmed Cisco's strained partnership with EMC/VMware, but added Cisco plans to form closer ties with EMC rivals such as NetApp, Red Hat, and Microsoft.
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  • Nov. 13, 2012, 5:45 PM
    After-hours top gainers, as of 5:15 p.m.: FOLD +6.7%. CSCO +6.6%. WWD +3.3%. ARUN +3.3%. NTI +2.8%.
    After-hours top losers: MOS -5.4%. SEP -4.6%. ES -4.0%. UBNT -3.4%. PATK -3.2%.
  • Nov. 13, 2012, 5:16 PM
    More on Cisco's call: The company is encouraged by U.S. and Asia-Pac activity, though Europe remains weak. Americas orders only up 2% Y/Y, hurt by federal demand, but enterprises and service providers up 9% and 13%. Asia-Pac +7% (India up strong, China flat), EMEA -10%. Wireless sales +38% Y/Y (good for ARUN), collaboration -8%, hurt by telepresence (bad for PLCM), data center (UCS servers) +61%. Switching and routing sales down slightly, but ASR9000 edge routers growing fast (good for EZCH). Cisco is looking to grow its recurring revenue streams.
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  • Nov. 13, 2012, 5:00 PM
    Cisco (CSCO) uses its FQ1 call (webcast) to guide for FQ2 revenue growth of 3.5%-5.5% and EPS of $0.47-$0.48, which compares with a consensus of 4.2% growth and $0.47. Gross margin is expected to be in the range of 61%-62%, down a bit from FQ1's 62.7%. Shares +7.5% AH.
  • Nov. 13, 2012, 4:10 PM
    Cisco Systems (CSCO): FQ1 EPS of $0.48 beats by $0.02. Revenue of $11.88B (+5.5% Y/Y) beats by $110M. $253M worth of shares repurchased at average price of $16.44. Shares +2.3% AH. CC at 4:30PM ET (webcast). (PR)
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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.