Flip Camera

April 12, 2011 by USA Post 

Flip Camera, CSCO announced it would close its business, Flip video cameras and reduce 550 jobs in its attempt to boost its faltering stock, focusing on fewer business priorities.

The company announced the move just weeks after CEO John Chambers told employees andanlysts that he was the review of operations of Cisco and would be difficult, but “directed” the decision to get back on track. Manyanlysts expected that the changes affect the consumer division of Cisco, which reported falling sales in the last quarter.

Cisco is one of the largest technology companies in Silicon Valley with over 70,000 employees. Is profitable overall, but has seen its stock price sole in two-year lows after recent earnings reports and forecasts were lower than Wall Street expected. The company dominates the market for network equipment like routers and switches, but in recent years has expanded to many other companies, leading some critics to say he has lost focus.

Headquartered in San Jose, Cisco also said it will move its home video system in the unit that sells high-end systems and similar business. The company said it is exploring other business items, including products for the home router.

“We are making key moves aimed at aligning their operations to support our strategy of network-centric platform,” Chambers said in a statement Tuesday.

Cisco began selling Flip digital cameras, which have been praised for its simple design and ease of use, then buy the Pure Digital camera maker by 590 million two years ago. Cisco does not indicate that seek to sell the business, but the company said “close” the business and ongoing support to customers covered with a “transition plan.”

Cisco said the job cuts will occur later this year and the company will recognize up to + 300 million in restructuring charges. No further details about the cuts.

An investmentanlyst, Brian Marshall of Gleacher & Co., called the move “a step in the right direction” but said she cannot have a big impact on the finances of the company as a whole.

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