Cisco Stock Tumbles After Weak Q4 Guidance
Although Cisco's third fiscal quarter earnings report was a mixed bag, its current fourth-quarter guidance was much lower than expected, with the company predicting revenue would be more than 6 percent lower than previously anticipated. In addition, the networking giant said it plans to cut 1,100 jobs in an expanded restructuring plan as part of last year's 5,500 layoffs.
CEO Chuck Robbins said the change was due to a sales decline in its service provider and public sector businesses. "The public sector business, particularly in the United States federal business … is a pretty significant stall right now with the lack of budget visibility," said Robbins.