(Reuters) - Network equipment maker Cisco Systems Inc reported stronger-than-expected quarterly revenue and profit as demand for switching equipment and routers helped make up for weak spending by the company's traditional telecom customers.
Cisco, which saw its shares rise 5.6 percent in extended trading on Wednesday, has been trying to make a transition toward a new cycle of high-end switches and routers.
""We executed very well in a tough environment, and I'd say our strategy is playing out like we expected," Chief Financial Officer Kelly Kramer told Reuters.
Network gear maker Juniper Networks Inc, which is under pressure from investor Elliott Management Corp to slim down, said it plans to reduce its global workforce by 6 percent and focus on its high-growth businesses.
Juniper (Sunnyvale, CA, USA) said most of the cuts would impact middle management positions and that it expected to incur cash charges of about $35 million in the first quarter, related to severance and other expenses.
The company had 9,483 full-time employees as of December 31.
Cisco Systems Inc plans to offer cloud computing services, pledging to spend $1 billion over the next two years to enter a market currently led by the world's biggest online retailer Amazon.com Inc, the Wall Street Journal reported.
Cisco (San Jose, CA, USA) said it will spend the amount to build data centers to help run the new service called Cisco Cloud Services, the Journal reported.
Cisco, which mainly deals in networking hardware, wants to take advantage of companies' desire to rent computing services rather than buying and maintaining their own machines.
US internet-technology giant Cisco has taken the wraps of a new platform aimed at helping companies to better manage the data being generated by so-called Internet of Things (IoT) applications.
Branded IOx, the platform allows applications to run directly at the edge of the network, says Cisco (San Jose, CA, USA), and will allow companies across a variety of sectors to develop, manage and run software applications directly on Cisco devices, including its routers and switches as well as IP video cameras.
Cisco Systems Inc and Huawei Technologies Co, two of the world's largest communications equipment makers, have been slugging it out for a decade now - in court, in emerging markets, in the lobbies of government and even on blogs.
The past year suggests they've ground to an expensive stalemate, raising questions about their futures on each other's lucrative home turf.
Earlier this month Cisco (San Jose, CA, USA) CEO John Chambers admitted in an earnings call that political dynamics were stymieing his company's long march into Huawei's backyard.
Network equipment maker Juniper Networks says Barclays executive Shaygan Kheradpir will take over from Kevin Johnson as chief executive at the start of 2014.
Johnson had announced plans to retire in July, having led the company since 2008, when he joined from software giant Microsoft (Seattle, WA, USA).
Kheradpir is currently chief operations and technology officer at financial services provider Barclays (London, UK), and before that he worked as executive vice president and chief information and technology officer at Verizon Communications (New York City, NY, USA).
Network equipment maker Juniper Networks has flagged a nearly six-fold increase in profits for the three months ending September on signs of improving demand for its products.
The company – which competes against Cisco in the market for internet routers and switches – said net income for its third quarter rose to $99.1 million, from just $16.8 million in the same period last year, with revenues up by 6%, to $1.19 billion.
Hardware giant Cisco has taken the wraps off a new network processor designed to power so-called “Internet of Everything” applications.
The company said the new nPower X1 would deliver new levels of performance and bandwidth, besides programmable control through open APIs.
Cisco (San Jose, CA, USA) also claims the nPower X1 is the first processor capable of scaling to “multi-terabit performance levels” while also handling trillions of transactions.
Cisco Systems Inc on Tuesday announced its first foray into the data storage market, saying it would pay $415 million to acquire privately held storage system maker Whiptail.
Cisco (San Jose, CA, USA) said it will pay cash and incentives for the acquisition, expected to close in the first quarter of 2014.
Whiptail, founded in 2008 and based in Whippany, New Jersey, makes storage systems based on flash memory chips, which allow data to move through servers with greater speed and efficiency as well as higher volume.
Network equipment maker Cisco Systems Inc is cutting 4,000 jobs, or 5 percent of its workforce, as it makes a fresh attempt to reduce costs and refocus on growth areas in the face of uncertain demand for its networking equipment.
Shares of the world's biggest network equipment maker fell more than 9 percent after hours, their biggest drop in more than a year if reflected on Nasdaq on Thursday.