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Cisco Systems, Inc. (CSCO)

  • Oct. 24, 2012, 11:59 AM
    The Street initially seemed comfortable with the soft Q4 guidance Juniper (JNPR -8.3%) provided with its Q3 report, but it's had a change of heart. Earnings call remarks about there being "no evidence of ... a significant improvement in the spending environment over the next few quarters" are likely a big reason why. Other networking equipment/component names are also off: CSCO -1.9%. CIEN -3.3%. JDSU -2.9%. RVBD -3.3%. FNSR -2.9%. APKT -2.6%. Soft guidance from Corning, Altera, and Broadcom could also be having an impact.
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  • Oct. 23, 2012, 5:33 PM
    More on Juniper's Q3: Q4 guidance is for revenue of $1.1B-$1.13B and EPS of $0.19-$0.22, below a consensus of $1.15B and $0.24. Q3 product revenue -3% Y/Y, services +15%. Routing product sales -7% Y/Y (share losses to Cisco), switching +20% (share gains), security -9% (likely share losses to Palo Alto Networks). Service provider revenue +3%, enterprise -2%. Switching/routing chief Stefan Dyckerhoff stepping down to become a VC, will remain a consultant. JNPR +2.5% AH. (PR)
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  • Oct. 22, 2012, 6:29 PM
    Gartner now expects 2012 global IT spending of $3.6T (hurt by forex), down a bit from a prior forecast of $3.75T. Spending is expected to grow a muted 3.8% next year to $3.7T. Microsoft and IBM's Q3 reports and commentary (I, II) have already raised fears of a soft IT spending environment. Also: Gartner expects half of all non-PC devices sold in 2016, and half of all business IT devices sold at the end of the decade, will be bought by employees - that's a long-term trend that could benefit Apple and hurt Microsoft.
  • Oct. 18, 2012, 11:22 AM
    If some top Cisco (CSCO) resellers had their way, development/sales chief Rob Lloyd would replace John Chambers as CEO when Chambers steps down, as he says he might do so in 2-4 years. Lloyd's sales experience - he ran a Canadian reseller before joining Cisco - is seen as a big feather in his cap. Lloyd and COO Gary B. Moore are considered the front-runners for Chambers' job after each received the title of President earlier this month.
  • Oct. 17, 2012, 8:32 AM
    More on Cisco: Shares -1.6% premarket thanks to a downgrade to Hold from Cantor. The firm thinks shares are likely to be range-bound near-term following the rebound seen over the last 3 months, and believes there's growing evidence the firm's "recovery thesis" will be delayed by a quarter or two. MKM upgraded Cisco earlier this month following positive reseller checks.
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  • Oct. 17, 2012, 8:21 AM
    Cisco (CSCO) and Citrix (CTXS) make their rumored partnership official. Among the details: 1) Cisco will recommend Citrix's NetScaler application delivery controllers (competes with hardware from FFIV and RDWR) to clients. 2) The companies will develop a cloud solution that combines Cisco's UCS servers and Nexus switches with Citrix's CloudPlatform (competes with VMW's vCloud). 3) The companies will develop mobile solutions that feature their collaboration, remote access, and file-sharing tools.
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  • Oct. 16, 2012, 11:45 AM
    Oppenheimer and MKM both believe Cisco (CSCO) is about to strike a reseller deal with Citrix (CTXS) related to the latter's NetScaler application delivery controllers (ADCs) - Oppenheimer thinks it could pave the way for Cisco, which recently said it would de-emphasize its own ADC hardware, to eventually acquire NetScaler for $1.5B-$2.1B. MKM argues F5 (FFIV), which is believed to control half of the ADC market to Citrix's 20% and Cisco's 15%, and maintains an edge in 3rd-party developer support, remains on solid ground. (also)
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  • Oct. 15, 2012, 3:29 AM
    ZTE shares plunge 15.1% in Hong Kong after China's second-largest telecom-equipment maker warns that it will make a Q3 loss of up to 2B yuan ($319.1M). ZTE blames a delay in some overseas deals and a large number of low-margin contracts in Europe, Asia and the domestic market. U.S.-listed shares on watch include ALU (-1.7% in Paris), ERIC (-0.85% in Stockholm), CSCO, JNPR,CIEN, MMI, BBND. (PR)
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  • Oct. 11, 2012, 5:50 PM
    Juniper (JNPR) boasts its new MX2020 carrier edge router offers 67% more capacity than any rival solution, at least once new line cards arrive. The MX2020 is 3x bigger than Juniper's largest edge router to date, and, together with the JunosV App Engine, should put the company on better footing relative to market leaders Cisco and Alcatel-Lucent. Cisco's ASR9000 edge routers rely on EZchip's (EZCH) network processors, while Juniper and Alcatel use proprietary chips.
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  • Oct. 11, 2012, 5:14 PM
    F5 (FFIV) is trying to make the most out of Cisco's (CSCO) application delivery controller (ADC) retreat: the company has doubled the payouts it's offering for customers trading in Cisco's ADC hardware for F5's. An F5 exec says the company has already seen many Cisco customers switch. Oppenheimer thinks the opportunity equals 16% of F5's 2011 sales, and notes Radware (RDWR) has also launched Cisco trade-in promotions.
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  • Oct. 9, 2012, 6:52 PM
    A Chinese Commerce Ministry spokesman warns a House committee report urging U.S. companies not to use Huawei and ZTE's gear will "undermine cooperation and development" between the U.S. and China. Arik Hesseldahl notes Cisco (CSCO), which derives 16% of its sales from the Asia-Pac region and just ended its partnership with ZTE, has plenty to lose if a "telecom trade war" breaks out. An EU anti-dumping case against Huawei and ZTE has been delayed.
  • Oct. 9, 2012, 5:02 AM
    Cisco (CSCO) ends a 7-year partnership with ZTE following allegations that the Chinese company illegally sold equipment to Iran, including Cisco switches and a telecom surveillance system. ZTE was "reasonably successful" in reselling Cisco products in China, although other aspects of the partnership didn't go so well. ZTE, along with Huawei, was yesterday accused of posing a security threat to the U.S.
  • Oct. 8, 2012, 1:19 PM
    Polycom (PLCM +5.9%) surges after announcing a product refresh (I, II, III, IV) that includes CloudAxis, a software-based solution that combines enterprise videoconferencing with support for communications between Web-based solutions such as Skype, Facebook, and Google Talk. Polycom plans to sell CloudAxis, which could put it on better footing against Cisco and help stem share losses to upstarts such as Vidyo, to enterprises and service providers starting in Q1.
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  • Oct. 8, 2012, 11:06 AM
    The House's Intelligence Committee has recommended Huawei and ZTE be shut out of the U.S. telecom equipment market due to security fears caused by their Chinese government ties. Unclear is whether the committee's stance will affect only infrastructure sales, or also the companies' U.S. mobile phone sales, which are growing quickly. Either way, infrastructure rivals such as CSCO, ALU, ERIC, CIEN, and TLAB must be pleased. (previous) (Huawei IPO rumor)
  • Oct. 8, 2012, 7:39 AM
    Inmarsat (IMASF.PK) says it's signed a long-term alliance with Cisco Systems (CSCO) that will enable its Global Xpress high-throughput satellite broadband network - including Cisco's building and operating the network and developing a router for it before transferring control to Inmarsat.
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  • Oct. 5, 2012, 9:47 AM
    Chinese IT/telecom equipment giant Huawei has reportedly reached out to i-banks about a possible IPO. Any offering would be a huge deal, given Huawei posted a 2011 profit of $1.85B on revenue of $32.4B, and is still growing at a healthy clip. Huawei, frequently scrutinized over its Chinese military ties, reportedly wants to be more transparent and boost its odds of winning foreign contracts it has been locked out of. The company is already a major headache for the likes of Cisco, Ericsson, and Alcatel-Lucent.
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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.