Re-structuring at Cisco Systems, Inc. (NASDAQ:CSCO)’s “Video and Collaboration group”
Cisco Systems, Inc. (NASDAQ:CSCO) the globes top and arguably the largest network solution provider with a market cap of $117 billion has been under the pump to demonstrate to its investors that it means business, ever since it announced a lower than expected revenue from its quarter ending November 2013. Readers should note that in the past 90 days, the stock has shed 5.6 percent of its market value at the stock markets.
Division’s Results Not up To the Mark
One of the solution area’s which had come under the scanner for its poor performance, among the wide product bouquet offered by Cisco Systems, Inc. (NASDAQ:CSCO) has been its “Video and Collaboration group”. This group which designs and sells products like “set-top boxes, Cisco tele-presence videoconferencing systems and the WebEx online collaboration service” has been steadily losing market share and had seen its contribution to the overall company revenue pool dip sequentially.
Marthin Proceeds On Leave
Now it transpires that Marthin De Beer who holds a designation of senior vice president and was heading the Video and Collaboration group has proceeded on a yearlong leave in order to tend to his family’s health related issues.
Marthin De Beer has been a long time senior manager at Cisco Systems, Inc. (NASDAQ:CSCO) and has been considered to be on the inner circle of CEO John Chambers. Marthin had overseen the integration of acquisitions like Scientific Atlanta (which was the market leader in set top boxes before its buyout by Cicso for $6.8 billion) and video software making firm NDS Group Ltd (bought by Cisco for $5 Billion) into Cisco’s Video and Telecommunications division. Since the sales and revenue from this group never met up to expectations, it is being opined that Marthin was eased out in this manner.
Cisco Systems, Inc. (NASDAQ:CSCO) shares went down by 1.92 percent during trading yesterday. This down turn was in line with the 1.13 percent decline seen in the larger technology index and a 0.82 percent decline seen in the Dow Jones Index.