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Tech Giant Cisco Craters Following Horrifying Guidance
On the surface, CSCO's numbers were not terrible: the company only missed its revenue expectation which is fine: after all nobody cares about revenues anymore and the only thing that matters are adjusted, recasted, pro-forma, non-GAAP, made up EPS numbers excluding virtually all COGS, R&D and SG&A items. Just for kicks, CSCO also threw in that last refuge of a company with no growth prospects: yet another massive $15 billion stock buyback. However, in light of the ongoing idiotic hopium that a recovery is just around the corner, as has been the case for the past 5 years always to no avail, what is cratering the company in after hours trading, was its forecast for the next quarter. It was a doozy:
- Q2 EPS was expected to be $0.52. Instead the company lowered the outlook to a range of $0.45-$0.47.
But the punchline... wait for it:
- Q2 revenues was expected up 4%. Instead it will be... drumroll... -8 to -10%!
Yup: the company expected an up to a 10% drop in revenues. Welcome to Mr. Yellen's recovery.
Because who really needs the internet... Oh yeah, with the social media bubble in full force, apparently insolvent retailers do: after all FB, TWTR, LNKD et al are all trading based on the assumption that advertising budgets are getting infinite-er by the day.
Curiously, the stock is trading after hours as if the vacuum tubes algos don't know that fundamentals haven't mattered in ages, and all CSCO has to do is boost its 2022 multiple by another 5-6 turns to get back to even.
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Mr. Yellen?
I knew she had a pair of nuts!
I don't want to ask how you knew that.
Say it aint so, Booker T, Jonny.
The NSA done shit in the pool and now nobody wants to swim in it... Surprise.
#41
"If you like your revenues, you can keep your revenues."
and ya cant unring a bell
With Cisco's equipment pre-rooted for Commadore Alexander of Starfleet Command, there's really no reason not to look for your network kit from Changfa.
It is more like the NSA let loose a giant SBD (Silent But Deadly) fartorama in the Cloud, the sound of crash landing European business plans is deafening...
I bet their is an algo out thier right now re twisting the facts so we can have another up day tomorrow. Clearly mr Yellen has to be diligent in fighting this unforseen guidance number and will come to the rescue with MOAR free money to get the csco stock price up
"What we actually said was IF you looked at earlier forecasts made before and there have been no changes to those forecasts, you can keep them".....?
And man boobs, Scrooge jowels, Quasimodo bearing, and an M.C. Escher thought process!
Yellen's going to do at least a double on QE. Or maybe triple?
Before this is over, we'll see printing of one trillion dollars per month. Perhaps multiples of that. Seriously ... what else can they do? I believe that the time has passed for any reality-based alternative.
There was a time when I thought that openly, brazenly printing up a hundred billion dollars a month or more (who knows?) and handing it to your cronies, family, and favored constituents would have caused problems. I am less sure of that now.
So what's to stop a trillion dollars a month? Ten trillion? It isn't going to stop unless and until people literally cannot feed themselves and their children. And, no, not just any people. Only the ones that matter: Government employees and welfare recipients. (Oops. Repeated myself.)
I'm sure this isn't the first time for her.
Big cap tech is so 2012.
Cloud networks do not need routers. Neither do scraper algos or bot nets. Ignore net traffic figures, digital sales, corporate IT spending and the lack of product innovation (well behind Moore's law) out of Intel & nVidia....
Its all in the Cloud. The Cloud will save us. Just do not ask what is in the Cloud, because the Cloud is everywhere, it has what you crave. It has electronics in it, so it has what you crave. Just don't ask IBM or Oracle why Cloud is not making any money, that is classified and not a material line item to their financial disclosure.
Can not wait for all the java "app" code monkeys with student debt loads fresh out of Berkley & Stan U to boomerang back onto the state in 2015FY when electrical eng & IT returns to its true growth rate of 5% of total corporate outlays.
The All Powerful "Eye in the Cloud".
BOW DOWN to the Cloud.
Do not attempt to peer inside the cloud. Belief in the cloud is all that is needed and all that is permitted.
Let's see ... how did Obi Wan put it? The cloud is a force that binds us all? Etc.?
That is not the quote you are looking for:
"You have allowed this dark lord to twist your mind, until now...you've become the very thing you swore to destroy. "
Bow down before the one you serve
You are going to get what you deserve
Nine Inch Nails - Head Like A Hole
http://www.youtube.com/watch?v=cV2EUUF47Ms
I'm not sure all get that here... you should have added a sarcasm tag.
euro is up offsetting ... 1900 sure.
-> 10 year chart 30 year note http://hedge.ly/1fCbWyG
#ASKChambers...How many employees will you be liquidating in order to secure the cash necessary to buy back $15 billion more of your own stock?
I think you mean "cay-ash."
They do have a large cash hoard. They will just move $15 B of it into the vaporizer.
I was guessing that they loaned it all to their "customers" by now.
They can make it all back by raising the prices on their TardNet® support contracts.
Too fucking true! I owned a managed service provider, and Cisco was a bunch of dickbags with Smartnet. Known issue? You need Smartnet to get the update. Pricing Smartnet was easy - 1/3 of the price of the unit per year. I went HP Procurve (Lifetime free upgrades, support, and replacement) and some other items, and never looked back. Cisco can't get the margins from software switching (Which they are light years behind on) and video conferencing never really took off. (People hate it) They should merge with M$FT and see if they can create the worst licening and support program ever. (All backdoors, intentional and otherwise included free of charge.)
This recovery will not be stopped!
Will Larry Ellison take a 10% pay cut?
No way! This is the New Rome! Call out the Centurions! Whip the slaves!
MOAR sales! MOAR advertising! MOAR layoffs! Cut the spouses from healthcare! Raid the Pension Funds!
Larry bought the island of Lanai'i.
Pretty sure he be chillin down at the Four Seasons in Manele Bay sippin on Mai Tai's.
Honeymooned there.
Now it is off limits to me.
Thanks Larry Dickhead
Bill Gates owns the other islands, ... good to know that there really is a "galt's gulch",...
oh noes!
The share price will continue to slide as Cisco's overseas earnings continue to crater. This is collateral damage of the NSA's unconstitutional monitoring.
imagine what would happen if it were not for the ban from Huawei from government contracts in most of the western world due to "security concerns"
Huawei is increasing sales in the UK, especially in unis. They are helping to fund a new campus in Swansea University.
Cisco is too arrogant and too full of middle managers with big egos IMPO.
In Australia, despite Huawei's huge lobbying efforts to be included in the authorised vendor list for the National Broadband Network, the pressure from the US has prevailed.
The MP's and heads of departments are still happy to take the free lunches and trips, though.
FUCK! Now what? I just spent the last semester to prepare for my CCENT! Sonb!tch! No refunds boss!
Your first mistake was taking classes to study for the Cisco exams. Just self study using the official books, maybe buy some hardware, and use Cisco Packet Tracer for labs.
Who will touch CSCO equipment with a 20 foot pole after NSA revelations that US tech companies work hand-in-hand with the NSA? This poor guidance was well expected. Not to worry, Janet Yellen will up QE to $120 billion a month.
Oracle CEO Larry Ellison has given his enthusiastic support for the National Security Agency's global surveillance of the internet and everyone on it.
Larry will regret his enthusiastic support of NSA spying on everyone in this world.
http://news.techeye.net/business/oracles-ultra-wealthy-larry-ellison-enthusiastically-applauds-nsa-spying
Remember, this is the man the offered to give FedGov all the Oracle software they needed to implement the national ID card.
Given that capitalism (i.e. "freedom") is being murdered, I doubt that Larry will suffer for his promotion of the upcoming total police state. At least not for long.
Most of the database used in Utah and Fort Meade are ORACLE, so yes Larry loves the NSA.
Probably worth a trillion dollars to Larry, a good guess is the majority of his biz going back to the 1960's has been for spook's.
fundamentals?
ha ha ha, that is so 30 years ago or so.
only thing that matters is qe, that is why i dont understand why other companies manipulate there numbers to make them look better, because it does not matter, the stock will go up whether you report excellent numbers or horrific numbers/guidance.
csco maybe down now, but by next week, gurantee its back at 24 dollars where it sold off from.
Shareholders & employees, say thanks to the NSA.
Cisco seems to be a company that leads the tech pack lower. I guess we are going lower.
Supposedly Facebook offered $3 billion for Snapchat and the Snapchat CEO turned down the offer because he believes he can get more.
YEP THAT'S OUR FUCKING ECONOMY NOW!!!!
My stupid fucking app that doesn't make any money and never will is worth more than $3 billion.
Honestly you could see that there could be a future making money selling pet supplies through the internet. Pets.com didn't work but at least there was some kind of business there.
12 year old girls gossiping on an app isn't a business.
I really wish someone would pull the plug on the internet already. I'm pretty much done with it. Just imagine what that would do for Playboy's stock.
I'm working on a app called " Campwire ". Value is unlimited. Thinking about lease or pay to play percentage.
It Is so you can know were your proles/serfs/civilians/losers are, are they working, room temp, unauthorized inactive or even possibly asleep. Options settings include auto tase, synaptic heart nerve block, and camp...er..um fiat credit, or debit, depending.
Groupon turned down $6 billion from Google... That worked out well for them....
Huh, you mean other countries didn't want the NSA upgrade feature built into their routers?
WhoCouldKnowed?
What revenue (from the NSA, et. al.) are you prohibited from publishing? How is that transition from a once-respected tech company, to another floppy boobie of the NSA octopus, coming along? At this point, considering the future trajectory of the company, is CSCO a proxy for NSA operations? Is it true that the project code name of next gen servers will be "resistance is futile".
I would assume Cisco has ALWAYS been a proxy for the NSA. Isn't he a Bilderberger?
How are the mighty fallen!
CSCO was the dotcom darling, with a PE briefly exceeding 130 in 2000. It's hallmark was always beating estimates by a penny. Current PE is less than one tenth that.
But even worse, CSCO had 5.38B shares outstanding on September 8, 2011 and now it has 5.39B shares outstanding despite large buybacks this year and in 2012. Buybacks are supposed to boost PE by reducing shares outstanding. But not if you give away an equivalent number of shares to management and employees! Any money used for buybacks should be subtracted from earnings.
Cisco has been lost at sea for a while now, it is just that now it is becoming apparent. It's all made in China, you don't need dedicated hardware for most router tasks when a server can handle firewall and routing duties at equivalent speeds for 1/2 or less of the money, with open software and not ridiculous support contracts. For the stuff that is needed, like switches, well, software switches are on the horizon and putting a few more network cards in your router is under $1000 for the best network cards - then you use cheaper switches and just use the router/firewall to segment off the network.
Juniper has been kicking them in the high-volume nuts for a while also.
ILikeBoats is correct, IMO. There was a time when everybody bought Cisco because it worked well and nothing else worked as well, but that time has passed and they have always been quite expensive, plus they continue to lard on features that most folks don't need, even big outfits. Also Facebook's Open Compute Project (OCP) is poised to hammer-jack them in the nuts.
You can easily run BGP, which is probably overkill anyway, under FreeBSD on an inexpensive Dell 1U and push hundreds of megabits a second. Coupled with leveraging a good content delivery network that's enough to run a top-100 website.
They're in trouble, and not just because the recovery is phony.
Bingo, cisco got hoisted on the petard of having to engineer their own custom hardware, even if they push the fabbing to someone else. Software defined networking is going to eat their lunch, among other things.
Talk down what you are buying and talk up what you are selling. BTFD. Definitely bullish.
There's no stopping this juggernaut....
Turn those machines back on!!!
Don't worry. ultra HD will make everyone's router garbage with the bandwidth currently available. Then everyone will buy another NSA approved router, because OMG that television is awesome.
The hardware arm cutout of the NSA.
Something is gonna be a drag on the Dow? Sounds like it's time to boot CSCO out and replace it with FB!
Ohh I see what's wrong, they forgot to slash positions!!!! A cut of about 5% ought to give the stock a nice boost,
Being a Cisco employee seems to be a risky proposition.
Why don't they convert to the "cloud model"? Then force customers to "subscribe" in order to gain use of their gear?
Only a matter of time before the 140-chartacter texting engine has a higher market cap.
Cisco loves Vyatta ...
A great gay pr0n where Certified HiTec Omnipotent Global Player® finally gets pounded.
Guidance, what guidance, there is no guidance but Bernanke ...
... and Bernanke is about to walk out the door.
Hmm.
I just bought a stack of switches today. Netgear switches. It used to be nobody got fired for buying Cisco. Ain't so today. Their stuff is priced at 250% of reality.