Cisco to Cut Another 1100 Jobs
- Author: Zachary Reyes May 28, 2017,
May 28, 2017, 3:13
The company said on Wednesday it expected revenue for its fourth quarter to fall between 4-6 percent from a year earlier, implying a range of $11.88 billion - $12.13 billion (roughly Rs. 76,493 crores - Rs. 78,098 crores). Although WebEx and Cisco Spark witnessed sustained growth in product sales, weakness in Unified Communications' was largely responsible for decline in segment revenues. Layoffs announced previous year brought down costs, and the company extended that restructuring plan in May to include an additional 1,100 employees.
About 345,742 shares traded.
San Jose, California-based Cisco Systems sells routers, switches, software, and services business. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the company.
"They're fighting some headwinds in their traditional products", said Erik Suppiger, an analyst at JMP Securities. Vetr raised Cisco Systems from a "sell" rating to a "hold" rating and set a $34.51 price objective on the stock in a research report on Monday, March 20th. "It's not going to be a very quick transition".
The share price of the company (NASDAQ:CSCO) was down -7.21%, with a high of 31.51 during the day and the volume of Cisco Systems, Inc. shares traded was 85500519. The company has market cap of $167.00 billion. The shares are up 27 percent in the past year.
"We are laser focused on delivering unparalleled value through highly secure, software-defined, automated and intelligent infrastructure", said Chuck Robbins, Chief executive Officer, Cisco. Barclays Capital maintained Cisco Systems, Inc. Service Provider Video revenues plunged 30%. The many acquisitions Cisco makes position the company well for future growth, and the megatrend of the IoT should benefit the company as well. The networking-gear maker hasn't reported an annual revenue gain of more than 10 percent since 2010. The company had Year Ago Sales of 12 Billion.
After surprising the industry and announcing 5,500 cuts jobs in August 2016, Cisco has dealt yet another shocker. "We have to remain committed to the core elements of what we think is going to be important to the future of Cisco three to five years from now". Large investors have recently bought and sold shares of the company. The company reported the earnings of $0.57/Share in the last quarter where the estimated EPS by analysts was $0.56/share. Switching revenue increased 2 percent, collaboration revenue increased by 4 percent and data center revenue decreased by 5 percent.
It announced the further lay-offs in its third quarter financial earnings, in which total revenue was $11.9bn, down one per cent year-on-year.
This was down to the uncertainty within the U.S. government about how much budget each department is going to get. The Company serves customers, including businesses of all sizes, public institutions, governments and service providers.
Net income in the fourth quarter, which ends in July, will be 46 to 51 cents a share.