April 12, 2011 by staff
Cisco Flips, San Jose, California-based Cisco, which has significant operations in Boxborough, said today it would close its business, Flip video cameras as part of a sweeping restructuring that includes the reduction of 550 jobs.
Cisco said it would refocus on its five core businesses – core routing, switching and services, collaboration, architectures, and video – and the removal of some of its consumer businesses, including the lid.
Cisco bought the Flip camera name and technology, to acquire Pure Digital Technology in 2009. At that time, the company announced the deal as “key to Cisco’s strategy to expand its force in the media at home and the capture of the market transition of consumers to the visual networking.”
Cisco expected to cost restructuring of the company and no more than million. The reduction in number of people is expected during the fourth quarter of 2011.
Last week, Cisco / quotes/comstock/15 *! CSCO / Sales / nls / CSCO (CSCO 17.45, -0.02, -0.10%), the chief executive, John Chambers, promised in a recent internal memo that the networking giant would be making a series of “target” moves to make address the concerns of employees and investors to fix the company’s portfolio. See article Salas note here.
Chief executive John Chambers, promised in a recent internal memo that the networking giant would be making a series of “target” moves to address the concerns of employees and investors to fix the company’s portfolio.
Some on Wall Street have been predicting that they would leave some key segments of the consumer business; such as your business flip video camera. “The street was never enamored of Cisco’s consumer strategy and product line Flip was the epitome of this contempt,” wrote the Securitiesanlyst Brian White Ticonderoga. See story on the output of Flip Cisco business.
However, as manyanlysts point out, the business of Flip is a small contribution of a single digit of Cisco’s total revenue. Another consumer business that apparently has given the company’s pain is more than Scientific-Atlanta, which Cisco paid and $ 5.1 million, net cash balance of the manufacturer of top cable box in.
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