Looking back, it's hard to figure out what networking giant Cisco Systems ever wanted with consumer goods, anyway. But now the distraction of trying to sell stuff to consumers and not companies is gone. Word just hit the wires that Belkin, the company behind numerous consumer accessory products like Web cams, power strips, cables, phone cases and such, just announced that it will buy Cisco's consumer home networking unit, Linksys. Financial terms aren't being disclosed, at least not by Belkin as yet, though the price may show up in a Cisco filing
Cisco Systems Inc., the largest maker of equipment for computer networks, has hired Barclays Plc to find a buyer for Linksys, which makes routers for home wireless access, said people with knowledge of the situation.
The unit may attract the interest of TV set makers seeking a recognized brand and technology, said the people, who asked not to be identified because the process isn't public. Linksys is likely to fetch much less than the $500 million Cisco paid for it in 2003 because it is a mature consumer business with low margins
Google is planning to unload Motorola Mobility's set-top box business before the companies' merger closes, the New York Post reported Wednesday.
Apple continues to be the market darling as investors eagerly anticipate more news about the iPad 3, and perhaps a dividend. The stock is up 24% in 2012. The excitement about Facebook's IPO continues to build too, with the possibility of a $100 billion valuation garnering a lot of attention.
But while new tech (Apple may have been around for decades, but it's clearly still innovating and acting more like a startup) is all the rage, don't shed any tears for the old guard of the sector.
Shares many of tech's geezers
The troubled networking giant Cisco Systems holds its financial analysts meeting in San Jose, California today. And the expectation is that CEO John Chambers will reset the company’s long term growth expectations downward to a trajectory that’s more in line with the troubled marketplace the company has found itself in recently. Additionally, Chambers will likely lay out his plan to get Cisco growing again, following a restructuring that saw 6,500 jobs eliminated, and certain parts of the company, in particular the Flip video camera business, shut down.
Cisco Systems plans to cut 15 percent of its staff and sell a set-top box factory as part of a plan to cut annual expenses by $1 billion as the network equipment maker tries to revive its fortunes. The company said on Monday that it will cut 11,500 jobs, compared with the several thousand that analysts had predicted. The cuts come after Cisco's chief executive John Chambers said in April that the company had "lost its way". Cisco had 73,408 employees as of the end of the last quarter, a spokeswoman said.
Hewlett-Packard would love to be the next IBM: A mature, megacap tech company that is still winning praise from Wall Street for delivering steady growth.
Unfortunately for HP, it's looking more and more like the next Cisco Systems: A mature, megacap tech company that is shunned by investors for being a muddled mess.
Shares of HP were one of the biggest laggards in the Dow Jones industrial average in 2010, and that trend has continued. Through Monday, the stock was down 18% year-to-date. The only Dow component to fare worse this year? Cisco
Cisco Systems has unleashed a world of hurt on its shareholders, masquerading as a consumer company that sells Flip phones, Umi telepresence, and Linksys routers. There's nothing wrong with selling gadgets to consumers. Apple does it brilliantly, and profitably. But Cisco isn't Apple. In a sense, Apple might be a place where Cisco can find comfort in its time of trouble. People forget how screwed up Apple was in the 90s. The fact that Apple turned itself around can provide a ray of hope to Cisco shareholders and the company's beleaguered CEO, John Chambers. If Chambers can keep his job
Cisco Systems is expected to cut thousands of jobs in what could be its largest-ever layoffs for the world’s largest makers of networking equipment, Reuters said.
Faced with slowing growth, Cisco chief executive John Chambers has set a goal of cutting $1 billion in costs. Analysts contacted by Reuters predicted that Cisco will lay off 4,000 workers in the coming months, or about 4 percent of Cisco’s worldwide work force of 73,000. Cisco also employs an undisclosed number of temps. The layoffs show that even in an industry upturn, there are still winners and losers.
Cisco Systems is the most unloved stock in the Dow Jones industrial average. Shares of the once-mighty networking equipment titan have fallen 12% so far in 2011. That makes it by far the worst performer in the Dow.
Adding insult to injury, Cisco's woes have come during what's been a great year for the market. The Dow is up nearly 10% and only three other Dow components are even in the red this year.
Cisco will report its latest quarterly results after the closing bell on Wednesday afternoon