Cisco (CSCO)

[iam802]

second tech stock to do so, right? (after Oracle)

[kennynah]

Oracle Stock Pays Dividends – Good for Investors and Employees ... by Chad Kidder

By david.talamelli on April 1, 2009 12:08 PM

In our current state of global economic uncertainty and volatility, investors have a wide range of choices as declining stock values offer bargain investments. Savvy investors, however have to hedge their bets against an economic decline that has not stopped.

In May 2009 Oracle will pay out its first dividend of 5 cents per share to investors on its books as of April 8. With Oracle continuing to beat Wall Street forecasts, dividend payments increase Oracle’s attractiveness to potential investors as well as current shareholders who may be concerned about holding individual stocks.


http://blogs.oracle.com/jobsatoracle/20 ... oyees.html

[iam802]

Cisco to Unveil an Affordable Home TelePresence Product for Consumers Next Week

http://kara.allthingsd.com/20100929/exc ... consumers/

Note:
- CSCO already has a entreprise version of this
- Extending this to the consumer space; ...remember the days when emails are limited to within corporate walls.
- to me, it seems like a similar change is coming.
- Challenge: err..lots of us are also on mobile. It is possible to do away with landlines nowadays (at least in SG)

[winston]

Cisco negative outlook.

Forecast only 10% growth next year.

Down 12.8% in after hours so Nasdaq may be affected tonight

[winston]

Not vested. Maybe the money from EM are going back to the US to buy counters like this

Cisco Systems Inc <CSCO.O> shares tumbled 9.5 percent to $19.95 in premarket trading a day after the network equipment maker warned about dwindling public spending and reported weaker quarterly margins.

Source: Reuters

[profittaker]

http://www.economist.com/node/18114914

Cisco

Feb 10th 2011 | from PRINT EDITION

The anti-Nokia
Is the world’s biggest maker of networking gear spreading itself too thinly?

ASK John Chambers, the boss of Cisco, about the formative experience of his business life and he mentions his time at Wang Laboratories. The defunct maker of word processors failed to recognise the importance of cheap standard PCs and he had to oversee almost 5,000 lay-offs—something, he says, he never wants to do again.

The mass firing goes a long way towards explaining why Cisco, the world’s biggest maker of networking equipment, is perhaps the best counter-example to Nokia. In contrast to the troubled Finnish firm, it is trying to make a business out of reinventing itself—so much so that investors wonder if the firm is stretching itself too thinly. Those criticisms are unlikely to go away after the quarterly results Cisco posted on February 9th. Earnings fell by 18% and revenues rose by an unexciting 6% year-on-year.

To avoid getting stuck in a market for obsolete products, Cisco is not entering just a couple of big new markets, but more than 30, including “virtual health care”, “cloud computing” and “safety and security”. It has devised what Mr Chambers calls a “replicable process”. Groups of senior executives identify the opportunity, come up with a plan and, if it passes several filters, gets the go-ahead.

The success of this strategy is hard to gauge—Cisco does not reveal enough about the new efforts. But some seem to have taken off, for instance “telepresence”, or high-end videoconferencing. Still, when Cisco announced in November that it had lost ground against upstart competitors in some core markets and hit “air pockets” in others, its shares tumbled by 16%.

“If we don’t stretch ourselves, we’ll get boxed in,” Mr Chambers recently countered at a customer conference in London. But he seems to have tapped on the brake. He no longer talks about increasing the number of new markets the firm enters to 50 and beyond. And no additional ones have been announced for some time.

Despite this, Mr Chambers is likely to come under increasing pressure to justify his approach—in particular if the weaknesses persist and more than one of the new ventures turns out to be a flop. But such setbacks may be the price to pay if Cisco does not want to end up like Nokia.

from PRINT EDITION | Business

[iam802]

So, Cisco do not want the consumer space...not their core

==
Cisco kills Flip, cuts 550 workers

http://money.cnn.com/2011/04/12/technol ... ney_latest

...

The networking giant said its new strategy is to serve most consumers indirectly through its business customers, rather than making products that shoppers buy straight from Cisco.


EmailPrint
"We are making key, targeted moves as we align operations in support of our network-centric platform strategy," Cisco CEO John Chambers said in a prepared statement. "As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network's ability to deliver on those offerings."

Cisco (CSCO, Fortune 500) is abandoning Flip, the digital video camera company it bought in March 2009 for nearly $600 million.

Umi, the HD video chat device aimed at consumers, will become part of Cisco's business telepresence product line.

...

[iam802]

Reuters just reported that Cisco (CSCO) will have a sales miss for this quarter with more jobs cuts expected.

The key points to note for Cisco is as follows:

1. Cisco’s core businesses is UNDER THREAT.

On the low end, competitors comes in the form of Netgear (NTGR), despite the fact that it owns Linksys.
On the high end, there’s Huawei from China.
In other words, there is very little room for growth in its traditional stronghold.

2. Transitional Period

Much has been said about its transition. While Cisco is pretty much cash rich, with little debt, there is no guaranteed that the transition will see light.

Just not too long ago, the newly acquired FLIP was dumped.

Traditionally, Cisco is used to selling hardware (routers, switches etc). The transition may mean more services and that does requires a change in approach.

3. Ichimoku Chart for CISCO (CSCO)

Nonetheless, we can see from the Ichimoku chart above, CSCO has at least 4 gap down May 2010 when it break the kumo support.

The trend is clearly bearish. With more cost cutting expected, I won’t be surprised if it can touch $15 or even $12 if the overall market turns bad.

[iam802]

Cisco is seeing slow growth ahead; hence the cut.

---
Cisco could eliminate as many as 10,000

http://www.reuters.com/article/2011/07/ ... AV20110712

(Reuters) - Networking equipment company Cisco Systems Inc could eliminate as many as 10,000 jobs, or about 14 percent of its workforce, to revive profit growth, Bloomberg said, citing two people familiar with the matter.

As many as 7,000 jobs would be eliminated by the end of August, the people told the agency. Cisco is also providing early-retirement packages to about 3,000 workers who took buyouts, according to Bloomberg.

Early on Monday, Reuters reported that Cisco may slash about 5,000 jobs to meet Chief Executive John Chambers' goal of slashing costs by $1 billion. Reuters had cited Gleacher & Co analyst Brian Marshall.

A Cisco spokeswoman told Reuters on Monday that the company will provide details on cost reductions, including layoffs, during its earnings call on August 11.

....

[iam802]

Follow up on my charts:



Cisco ($CSCO) continues to trend down with gaps in between.

Since my last post in May, CSCO has fail to hold on and has go lower towards the $15 range.

News is out now that CSCO will cut as many as up to 10,000.

CSCO job cuts highlight the possibility of slow growth ahead due to economic activities and its internal innovation/transformation.

I believe, CSCO will hit $12.50 by Q1, 2012 (or maybe even earlier).