Cisco's Strategy in Recessionary Times


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Case Details:

Case Code : BSTR373
Case Length : 16 Pages
Period : 2000-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Cisco Systems Inc
Industry : IT - Networking Equipments
Countries : US

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Introduction Contd...

Commenting on the results, John Chambers (Chambers), Chairman and CEO of Cisco, said, "Our outstanding Q2 results exceeded our expectations and we believe they provide a clear indication that we are entering the second phase of the economic recovery. During the quarter, we saw dramatic across the board acceleration and sequential improvement in our business in almost all areas."3 (Refer to Exhibit I for the details of Cisco's quarterly financials). Analysts were of the view that Cisco's results showed that the economic recovery was underway, as growing demand for routers, switches, and other equipment, areas in which Cisco had a major presence, indicated that technology companies had begun upgrading networks.

According to Erik Suppiger, Analyst at the Signal Hill Group, "The results were very strong, better than we were looking for, and an incremental improvement from the last quarter when they noted their visibility into the second half of the fiscal year was limited and they didn't want to suggest a recovery was underway."4...

 Excerpts >>


3] "Cisco Reports Second Quarter Earnings," http://newsroom.cisco.com, February 03, 2010.

4] "Cisco Quarterly Results Soar Past Estimates," http://in.reuters.com, February 04, 2010.


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