Cisco Systems Inc's quarterly results topped Wall Street views on Wednesday amid early signs tech spending was on the mend, but CEO John Chambers warned the picture was mixed and parts of Europe remained challenging.
The company's shares were down 1.7 pct in after hours trading after Cisco (San Jose, USA) reported that revenue growth in Europe - which accounts for a quarter of its business - was down 5 percent. Revenue in the Americas was up 9 percent and was 8.3 percent higher in the Asia-Pacific region.
Oracle Corp will buy network equipment maker Acme Packet Inc for $2.1 billion, putting it in a better position to compete with Cisco Systems Inc (San Jose, USA) in moving data securely over internet networks.
Shares of Acme (Bedford, USA) were trading 7 cents above the offer price of $29.25 in early trading on Monday, suggesting that some investors anticipate a counter bid.
The deal is Oracle's (Redwood Shores, USA) biggest since it bought Sun Microsystems in 2010 for about $7 billion.
Cisco Systems Inc is selling its home networking business to Belkin, the networking giant's latest move to exit the consumer business.
The companies did not disclose the financial terms of the deal, which Belkin (Playa Vista, USA) said on Thursday is expected to close in March.
With the sale, Cisco (San Jose, USA) sheds one of the last remaining pieces of its consumer business, following the shutdown of the Flip video camera business in 2011.
Earlier this month, Cisco said it would shutter its Umi online video-conferencing service.
Networking equipment company Cisco Systems Inc has acquired a small stake in Russian software developer Parallels, Parallels said on Thursday.
Parallels (Moscow, Russia) said in a statement that Cisco (San Jose, USA) has bought about 1 percent of the company and added that the stake sale does not rule out a possible initial public offering of the Russian firm.
"We are looking at all possible ways to ensure liquidity options: dividend payouts, IPO, mergers and acquisitions," Parallel's press service said.
East Carolina University (ECU) has filed a lawsuit against Cisco Systems Inc over the use of its registered trademark "Tomorrow Starts Here", which is central to the network equipment company's new marketing campaign.
The U.S. university said on Friday that it is seeking damages for unauthorized use of the trademark, which it said is "a university-wide brand that represents an overlapping field of goods and services when compared with that of Cisco".
Cisco Systems laid out its mid-term growth strategy on Friday, betting on increased demand for software, services and security as it strives to become the world's leading information technology company.
Cisco (San Jose, USA), whose business roots in routers and switches that move Internet traffic still generate about 50 percent of its revenue, has been steadily expanding its other offerings including data centers, network security and video conferencing.
[Note: as of this writing Cisco's stock is trading up 5.8% on the NYSE, having beaten estimates.]
Cisco Systems Inc reported first quarter results that beat estimates but expects flat earnings and slower revenue growth for the current quarter.
"We are modeling Europe to get worse before it gets better," Chief Executive John Chambers said on Tuesday, echoing his comments from the company's fourth-quarter earnings call in August.
However, he added that "we see signs of improvement in the U.S. in enterprise, service provider and commercial."
Contract electronics manufacturer Plexus Corp said it would no longer make switches and network gear for its largest customer, Juniper Networks Inc, sending its shares down 24 percent after the bell.
Juniper (Sunnyvale, USA) said it was cutting the number of suppliers it uses and an analyst said price may have been an issue.
Plexis (Neenah, USA) did not give a reason for the contract loss but is expected to discuss the development in a conference call scheduled for Wednesday morning at 8 a.m. Eastern.
Equipment maker Juniper Networks reported an 80% decline in third-quarter net income as restructuring costs chewed into revenues that were only slightly up on 2011 results.
Net income came in at $17 million, compared with $84 million during the third quarter of 2011, while revenues rose to $1.12 billion from $1.11 billion a year earlier.
The company has been hit by a reduction in spending on network equipment, as operators lower their capital expenditure in response to the poor economic conditions.
Cisco’s chief executive John Chambers has named a number of potential successors, according to Bloomberg, prompting speculation about his retirement from the role.
According to Chambers, the candidates for the top job at the maker of internet switches and routers include Gary Moore, the chief operating officer, Robert Lloyd, executive vice president of worldwide operations, Chuck Robbins, senior vice president of the Americas, and Edzard Overbeek, senior vice president of global services.