Cisco to Announce Quarterly Results Tomorrow Amid Shake-Up
Juniper's Yen named new servers head
Cisco Systems Inc. (CSCO) will hold a conference call for Wednesday, May 11, 2011 at 1:30 PM (PT), to discuss its third quarter fiscal year 2011 results, amid a management shake-up that began last month. Financial results will be released after the close of the market on Wednesday.
Yesterday, Cisco Systems named Juniper Networks Inc. (JNPR) executive David Yen to lead its server access and virtualization technology group. He will replace Mario Mazzola, Prem Jain and Luca Cafiero, who founded the business that served as the basis for the division. Mr. Yen led Juniper's multiyear data center network research and development initiative, known as Qfabric. He previously spent 20 years at Sun Microsystems, where he led development of Sun's first-and-second-generation multi-CPU servers, and turned around Sun's SPARC business.
Last week, Cisco announced significant changes to its business structure and operations. The company said it will streamline its sales, services and engineering organizations as it focuses on the five areas driving the growth of networks and the Internet: core - routing, switching, and services; collaboration; data center virtualization and cloud; video; and architectures for business transformation.
"Cisco has driven transformational change before, and we are again transitioning to the next stage of the company's evolution," said Cisco Chairman and CEO John Chambers, in a statement on May 5.
The majority of these changes will take place over the next 120 days, with a new sales organization in place at the start of Cisco's fiscal 2012 (July 31, 2011). The May 5 statement, however, said Executive vice president Robert Lloyd will continue to lead the worldwide field operations and sales organization.
"Cisco is focused on making a series of changes throughout the next quarter and as we enter the new fiscal year that will make it easier to work for and with Cisco, as we focus our portfolio, simplify operations and manage expenses," said Gary Moore, COO. "Our five company priorities are for a reason-they are the five drivers of the future of the network, and they define what our customers know Cisco is uniquely able to provide for their business success. The new operating model will enable Cisco to execute on the significant market opportunities of the network and empower our sales, service and engineering organizations."
Chief Executive Officer John Chambers said last month he will a number of moves at Cisco in an effort to rebuild confidence among investors and customers.
In April, Cisco 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, among other things, close down its Flip business and support current FlipShare customers and partners with a transition plan.
Cisco's decision to focus on servers has put it into closer competition with computer makers, including International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HPQ).
Cisco's shares have fallen 13 percent this year.