Cisco Systems Inc. (NASDAQ:CSCO) had its target price raised to $30 by Morgan Stanley in an issued report issued 8/18/2016.
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The company’s revenue for the May-July quarter was $12.6 billion, up 2 percent from $12.4 billion a year ago.
Hutchinson said it was “relatively unlikely” there would be more job cuts until the end of the fiscal year, barring unforeseen macroeconomic events.
“We continue to execute well in a challenging macro environment”.
Cisco Systems, the biggest maker of equipment that runs the internet, plans to cut about 7 percent of its workforce, trying to recast itself as a provider of software-based systems and services.
Chuck Robbins is planning to boost growth by moving the company’s offerings toward low-priced software-based networking, security and management products. Revenue of $12.64 billion, beat estimates by $70 million.
Cisco Systems Inc said it would cut almost 7 percent of its workforce, posting charges of up to United States dollars 400 million in its first quarter, as the world’s largest networking gear maker shifts focus from its legacy hardware towards higher-margin software.
Other tech giants have also announced drastic job cuts in light of the PC industry’s decline.
In fact, India’s R&D centre is the biggest outside Cisco’s San Jose facility, which has about 12,500 engineers.
Cisco built its fortune on hardware for private data centers, but businesses are increasingly turning to “super-clouds” such as Amazon Web Services and Microsoft Azure which rent processing muscle as needed, according to the analyst.
“We are committed to making the necessary decisions to drive our future growth”, Robbins assured analysts during a Wednesday conference call. Robbins said that customer expectations are rapidly shifting and the winners “will be the ones that understand those dynamics”. Revenue for the year was up 3% at $48.7 billion. Orders from service providers fell 5 percent, while revenue in emerging markets fell 6 percent, Cisco said.
Cisco Systems is reportedly considering shedding its global workforce by almost 20 percent with the lose of up to 14,000 jobs. In the same period the year before, it was $2.32 billion (45 cents a share).
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Last November, the company opened its new United Kingdom office, based near London’s Silicon Roundabout, after promising to invest more than $1 billion (£770 million) in the United Kingdom over the next three to five years.
