Cisco Restructures Consumer Business

Tue Apr 12, 2011 8:32am EDT

* Reuters is not responsible for the content in this press release.

  SAN JOSE, CA, Apr 12 (MARKET WIRE) -- 
As part of the company's comprehensive plan to align its operations,
Cisco (NASDAQ: CSCO) today announced that it will exit aspects of its
consumer businesses and realign the remaining consumer business to
support four of its five key company priorities -- core routing,
switching and services; collaboration; architectures; and video. As part
of its plan, Cisco will:


--  Close down its Flip business and support current FlipShare customers
    and partners with a transition plan.
--  Refocus Cisco's Home Networking business for greater profitability and
    connection to the company's core networking infrastructure as the
    network expands into a video platform in the home. These
    industry-leading products will continue to be available through retail
    channels.
--  Integrate Cisco umi into the company's Business TelePresence product
    line and operate through an enterprise and service provider
    go-to-market model, consistent with existing business TelePresence
    efforts.
--  Assess core video technology integration of Cisco's Eos media
    solutions business or other market opportunities for this business.

    

"We are making key, targeted moves as we align operations in support
of our network-centric platform strategy," said John Chambers, Cisco
chairman and CEO. "As we move forward, our consumer efforts will focus on
how we help our enterprise and service provider customers optimize and
expand their offerings for consumers, and help ensure the network's
ability to deliver on those offerings." 

    In connection with the changes to the consumer business, it is
anticipated that Cisco will recognize restructuring charges to its GAAP
financial results, with an aggregate pre-tax impact not expected to
exceed $300 million during the third and fourth quarters of fiscal 2011.
The charges will be disclosed in upcoming earnings conference calls and
quarterly Form 10-Q filings. Additionally, the company expects this will
result in a reduction of approximately 550 employees in the fourth
quarter of fiscal 2011. 

    About Cisco 
 Cisco (NASDAQ: CSCO) is the worldwide leader in networking
that transforms how people connect, communicate and collaborate.
Information about Cisco can be found at http://www.cisco.com. For ongoing
news, please go to http://newsroom.cisco.com.

    Forward-Looking Statements 

    This press release may be deemed to contain forward-looking statements,
which are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including the company's plan to align its
operations in support of its network-centric platform strategy, Cisco's
consumer focus going forward, the maximum size of the anticipated
restructuring charges, and expected employee reductions. Readers are
cautioned that these forward-looking statements are only predictions and
may differ materially from actual future events or results due to a
variety of factors, including, among other things, how well we execute on
our strategy and operating plans, business and economic conditions and
growth trends in the networking industry, customer markets and various
geographic regions, global economic conditions and uncertainties in the
geopolitical environment and other risk factors set forth in Cisco's most
recent reports on Form 10-K and Form 10-Q. Any forward-looking statements
in this release are based on limited information currently available to
Cisco, which is subject to change, and Cisco will not necessarily update
the information. 

    For direct RSS Feeds of all Cisco news, please visit "News@Cisco" at the
following link: 

    http://newsroom.cisco.com/dlls/rss.html

Contact:
Karen Tillman
408.526.6839
katillma@cisco.com 

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