Cisco expects annual sales growth of 5 percent to 7 percent over the next three years, and expects its restructuring is still ongoing in order to increase profits faster than sales of the company, executives said Tuesday at a conference with analysts.
The ongoing restructuring in the past few months have eliminated several 12 900 jobs through a series of measures, including outsourcing, seen and displaced 22 700 people in total, said President and CEO John Chambers in a speech at the company’s San Jose, California.
The company is sharpening its focus on a few key markets and streamlining its sales process to lower the operating costs, Chambers said. These efforts will continue in the coming years, he said. It began earlier this year, after Cisco released disappointing figures.
“We were fat,” said Chambers. “I mean, we had an additional four or five inches at the waist.”
Earnings per share excluding one-off effects is expected to grow 7-9 percent annually over the next three years, said Chief Financial Officer Frank Calderone.
Dropped as part of its streamlining effort, Cisco, a controversial structure around the boards and commissions set up so that managers responsible for specific areas of products, Chambers said. For example, was the core of the enterprise routing and switching from any company that is associated with a pair of executives and longtime executive Marthin De Beer is solely responsible for the video.
Cisco cuts designed to U.S. $ 1000000000 in annual operating expenses of the slash are about right, but could be reviewed if the economy takes another dip, said analyst Mark Sue of RBC Capital Partners. Estimated revenue of the company is more realistic than it gave in the past, he said. Sue welcomed the reorganization.
“The property is very important, and it is a company that make it very cumbersome to business,” said Sue.