Thread regarding Cisco Systems Inc. layoffs

Investors Business Daily-Cisco Stock Plunges On Weak Guidance As Rival Arista Networks Outperforms

Jefferies analyst George Notter said rivals may have out-performed Cisco.

"Frankly, it's a bit hard to accept that Cisco is the 'canary in the coal mine' on the China/Covid lockdown supply chain issues, which cropped up in April," he said in a report.

He added: "We're wondering if Cisco's isn't executing crisply with its supply chain team. Based on our analysis, Cisco was slow to ramp inventories and purchase commitments while other equipment vendors – such as Arista Networks (ANET)– reacted several quarters before Cisco."

At Needham, analyst Alex Henderson said in a report: "Cisco is blaming its outlook primarily on supply chain, particularly power supplies. Its guidance is substantially weaker than any other company in the category."

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Post ID: @OP+1gORm3n4

4 replies (most recent on top)

Cisco supply chain relies on outsourced contract manufacturers operating with long lead components managed "just in time". It's failure waiting to happen. The next big thing will be a return to vertical integration in supply chain. Get ready for the consultants and powerpoints....

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Post ID: @2okh+1gORm3n4

Chuck did not plan for a shutdown happening in Shanghai but Arista/Juniper/Apple/IBM did plan for it.

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Post ID: @mcz+1gORm3n4

Supply chain only affects Cisco, give Chuck a break, no?

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Post ID: @jhj+1gORm3n4

But we pay dividends....

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Post ID: @zgc+1gORm3n4

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