We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Cisco Separately Sell Network Operating Software Lindt?
Read MoreHide Full Article
Per CNBC which quoted The Information, Cisco Systems Inc. (CSCO - Free Report) is planning to sell its newly developed standalone network operating system software called Lindt separately from its high-end devices.
The Information also noted that “Customers will be able to use Cisco’s cheaper switches that run on chips made by other companies, like Broadcom, rather than Cisco’s specially designed chips.”
Cisco’s share price dropped 0.18% in after hour trading on Mar 28. We note that Cisco has outperformed the Zacks Computer Networks industry on a year-to-date basis. While the shares gained 12.6%, the industry witnessed an increase of 11.9%.
Switching: Cisco’s Largest Business
Cisco’s strategy of bundling software-hardware in switching business has been accretive to its top-line growth over the years. Switching, which contributed 39.6% of revenues in fiscal 2016, is its largest segment. However, revenue growth has been disappointing in the last couple of years as the company continued to lose market share.
Per CNBC, the recent move will help Cisco maintain its customer base against intensifying competition from the likes of Arista Networks (ANET - Free Report) and Juniper Networks (JNPR - Free Report) . However, increasing sales of the low-margin switches can hurt profitability going ahead.
Share Momentum to Continue
We believe that Cisco’s expanding footprint in the rapidly growing security and data center market is promising. The company’s expanding product portfolio thanks to Jasper and AppDynamics acquisitions is a key positive. (Read More: Cisco Expands Its IoT Offerings Thanks to Jasper)
Moreover, partnerships with the likes of Pure Storage, salesforce.com (CRM - Free Report) and IBM will help Cisco to gain significant traction in the data center, cloud and Internet of Things (IoT) market in the long haul. (Read More: Cisco, IBM Expand VersaStack Offerings to Boost Performance)
Further, continued share buyback and dividend hikes are positives.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Cisco Separately Sell Network Operating Software Lindt?
Per CNBC which quoted The Information, Cisco Systems Inc. (CSCO - Free Report) is planning to sell its newly developed standalone network operating system software called Lindt separately from its high-end devices.
The Information also noted that “Customers will be able to use Cisco’s cheaper switches that run on chips made by other companies, like Broadcom, rather than Cisco’s specially designed chips.”
Cisco’s share price dropped 0.18% in after hour trading on Mar 28. We note that Cisco has outperformed the Zacks Computer Networks industry on a year-to-date basis. While the shares gained 12.6%, the industry witnessed an increase of 11.9%.
Switching: Cisco’s Largest Business
Cisco’s strategy of bundling software-hardware in switching business has been accretive to its top-line growth over the years. Switching, which contributed 39.6% of revenues in fiscal 2016, is its largest segment. However, revenue growth has been disappointing in the last couple of years as the company continued to lose market share.
Cisco Systems, Inc. Revenue (TTM)
Cisco Systems, Inc. Revenue (TTM) | Cisco Systems, Inc. Quote
Per CNBC, the recent move will help Cisco maintain its customer base against intensifying competition from the likes of Arista Networks (ANET - Free Report) and Juniper Networks (JNPR - Free Report) . However, increasing sales of the low-margin switches can hurt profitability going ahead.
Share Momentum to Continue
We believe that Cisco’s expanding footprint in the rapidly growing security and data center market is promising. The company’s expanding product portfolio thanks to Jasper and AppDynamics acquisitions is a key positive. (Read More: Cisco Expands Its IoT Offerings Thanks to Jasper)
Moreover, partnerships with the likes of Pure Storage, salesforce.com (CRM - Free Report) and IBM will help Cisco to gain significant traction in the data center, cloud and Internet of Things (IoT) market in the long haul. (Read More: Cisco, IBM Expand VersaStack Offerings to Boost Performance)
Further, continued share buyback and dividend hikes are positives.
Currently, Cisco has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>