Followers | 683 |
Posts | 142169 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
![](https://investorshub.advfn.com/uicon/35728.png?cb=1539773763)
Friday, November 15, 2019 4:07:37 PM
By: MarketWatch | November 13, 2019
Large enterprises sending expenditures through more processes and sometimes downsizing deals, Cisco executives say, as stock falls in late trading
Cisco Systems Inc. sparked fears of a tech-spending slowdown with its last forecast. With its latest projections, it may have confirmed them.
Cisco CSCO, -5.14% projected that revenue would decline by 5% or more in the current period when it reported quarterly earnings Wednesday afternoon, news that sent shares down by about the same percentage in after-hours trading. In a conference call and interview with MarketWatch, executives described a slowdown that had been confined to smaller parts of the market three months ago suddenly expanding into almost all corners of the world.
“It feels like there’s a bit of a pause,” Chief Executive Chuck Robbins said in the conference call. “We saw things like conversion rates on our pipeline were lower than normal, which says things didn’t close the way we have historically seen it. ... It was really just stuff slipping. We saw some large deals get done, but got done smaller.”
In an interview with MarketWatch following the call, Chief Financial Officer Kelly Kramer said that large businesses were putting purchases through more review processes, meaning orders were taking longer to get done.
“It wasn’t just big deals getting smaller, the buying cycle is lengthening,” Kramer said.
The insights provided Wednesday suggest that concerns are warranted, well beyond Cisco’s near-term future. Cisco has long been seen as a harbinger of potential macro problems for the tech ecosystem, as purchases of large networking equipment largely presage purchases of other equipment and software to use on new networks. A customer base of large companies and governments spread across the globe also make it a useful proxy for tech spending, and top executives have shown a longtime willingness to provide insights on their dealings with customers.
After saying three months ago that spending was slowing from telecommunications clients and emerging markets — especially China, which is not a huge market for Cisco — executives repeatedly described the slowdown as “broad-based.” Kramer told MarketWatch that growth declined in eight out of the top 10 countries in which Cisco sells, and the slowdown in Cisco’s Enterprise and Commercial businesses shows that some of the world’s largest companies are holding the pursestrings tighter heading into the end of the calendar year.
Corporate America is heading toward a new nadir in an earnings recession that could last the entire calendar year, and Cisco’s disclosures on Wednesday suggest that the decline is starting to show up in their willingness to spend, especially on large tech upgrades. Cisco will survive, and its push into more software will soften any blow, but other tech companies may not be so lucky.
Read Full Story »»»
![](http://accountaccess.myfedloan.org/static/applications/consumer-authentication/1.1/images/icnUSFlag.gif)
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent CSCO News
- Cisco Becomes Official Partner of the LA28 Olympic & Paralympic Games and Team USA • PR Newswire (US) • 06/20/2024 04:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 11:59:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 11:58:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 11:58:02 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 11:56:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 11:00:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 10:58:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 10:56:30 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/14/2024 08:27:10 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 08:06:44 PM
- Cisco Appoints Ekta Singh-Bushell to Board of Directors • PR Newswire (US) • 06/14/2024 01:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/13/2024 08:41:24 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/13/2024 08:26:20 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 09:19:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 09:18:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 09:17:23 PM
- Cisco and Splunk Announce Integrated Full-Stack Observability Experience for the Enterprise • PR Newswire (US) • 06/05/2024 03:06:00 PM
- Apollo Buys 49% of Intel’s Irish Plant for $11bn, BlackRock and Citadel to Create Texas Exchange, and More News • IH Market News • 06/05/2024 11:41:36 AM
- Cisco Live 2024: Cisco Announces New AI-powered Innovations and Investments to Help Customers Unlock a More Connected and Secure Future • PR Newswire (Canada) • 06/04/2024 03:06:00 PM
- Cisco Live 2024: Cisco Announces New AI-powered Innovations and Investments to Help Customers Unlock a More Connected and Secure Future • PR Newswire (US) • 06/04/2024 03:06:00 PM
- Cisco Security Cloud Vision Comes to Life, Transforming Enterprise Defenses • PR Newswire (US) • 06/04/2024 03:06:00 PM
- Cisco Reveals Nexus HyperFabric AI Clusters, A New Simplified Data Center Infrastructure Solution with NVIDIA for Generative AI • PR Newswire (US) • 06/04/2024 03:06:00 PM
- CISCO LAUNCHES $1B GLOBAL AI INVESTMENT FUND • PR Newswire (US) • 06/04/2024 03:06:00 PM
- Cisco ThousandEyes Digital Experience Assurance Radically Shifts IT Operations from Monitoring to Action • PR Newswire (US) • 06/04/2024 03:06:00 PM
- Cisco Live 2024: Cisco Announces New AI-powered Innovations and Investments to Help Customers Unlock a More Connected and Secure Future • PR Newswire (US) • 06/04/2024 03:06:00 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM