Orders down 17% and terrible guidance-BIG LAYOFFS
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"Cisco stock is at same price as it was 5 years ago"
Its at the same price it was 23 years ago :)
https://news.bloomberglaw.com/litigation/splunk-sued-for-alleged-misrepresentations-in-cisco-buyout-proxy
Cisco stock is at same price as it was 5 years ago
After the stock fell from $82 in 2000 into the $8s it never got to where it is now until 2018 under Chuck. It was around $34 in 2007 where it fell well below that until 2017 under Chuck.
Would be nice if the board would finally do their job and fire Chuck and his ELT
Cisco would do well to fire its entire software development organization as well. The problem with both is you then have to find a way to draw far better talent, and talent won't sign up to tinker with broken things which is what Cisco requires for the foreseeable future.
Cisco will continue to fade without a technical CEO
The Sales Director in my group with no direct reports was LR'd today
Juniper here - we are in the same boat - weak forecast. I suspect Arista and others will follow suit
Chuckie has to borrow money from bank to buy Splunk at these higher interest rates
Cisco used to pride itself on having no debt, but now runs the company just like the government
Here's why. We have cut our medium sized enterprise budget down to a current 20% of the amount we paid five years ago. Pure and simple; customer support. Who outsourced the whole dang TAC? Pitiful. Forget working on complex issues. We have decided to run our Cisco gear into the ground, take off all TAC support unless absolutely necessary, and when things break here and there, go to another vendor's gear and support. Multiply our scenario over and over, and that is why orders are way down.
Whoever now is overall in charge of TAC ruined the key differentiator that was once Cisco's reason customers relied on the company in its hayday.
The estimated effect of layoffs on earnings in Q2 is estimated to be close to the same as it was in Q1.
Q1 FY 2024 GAAP EPS
adjustment to GAAP Q1:
Significant asset impairments and restructurings 0.03
Q2 FY 2024 GAAP EPS
Estimated adjustment to GAAP Q2:
Significant asset impairments and restructurings 0.03 - 0.04
Is lawrenceville affected?
Chuck's move to Atlanta to save taxes and working remote probably not in the best interest of employees or stockholders
Cisco stock is at same price as it was 5 years ago
Would be nice if the board would finally do their job and fire Chuck and his ELT
Sales forecast missed by $2B so add Jeff S to layoff list and hire a real sales exec to replace a puppet
$123mil for Restructurings and other charges, that would be about 800 people requires SEC filing
probably still many smaller quiet LRs without SEC filings to tricking around
There is a $123 m “Restructurings and other charges” expense in the books for Q1. It’s not clear if that is for LRs that already happened in Q1 or for LRs to come
So what's the conclusion: LR or no LR? how many will be cut? starting when?
Analyst just called BS on Chuck trying to say that Cisco is a player in AI
Customers are dumping Cisco gear and buying from Microsoft, AWS, Arista, etc
Need to layoff thousands to pay $28B for Splunk
Orders down 20%!!! Make no mistake, the numbers hide this because revenue is based on shipments. Any board worth their salt seeing that HUGE decline (after last quarters sizable decline) would be canning the CEO.
They changed how they report product revenue categories to hide the bad performers!
Earnings release has money allocated for restructuring!!
Calling last few quarters “exceptionally strong product delivery” is rich considering it only happened because of the years of cheaping out on supply chain.
Chuckie must be fired ASAP!!!
lol CR still blaming Covid
Hearing 20% LR in January
"Cisco saw a slowdown of new product orders in the first quarter of fiscal 2024 and believes the primary reason is that customers are currently focused on installing and implementing products in their environments following exceptionally strong product delivery over the past three quarters. Cisco estimates there are one to two quarters of shipped product orders still waiting to be implemented by its customers."
slowdown means layoffs are coming to balance the books. drop in the big $$ spent to acquire splunk and what's about to happen is a huge massive LR.