https://seekingalpha.com/article/4126381-cisco-buying-software-story
4 replies (most recent on top)
Article is right on. Further, what gets lumped into recurring is service revenue on the declining core business. The company is in trouble.
Another quarter of decline will hit the stock hard, after Chucky has promised growth in Q2. I'm not sure where we are going to find this elusive growth and if we recall the initial growth was created by Trumps repatritisation of offshore capital that CSCO would no doubt use for buy backs, which is also looking very unlikely now. Going long on CSCO is a risky move by my book. We've enjoyed growth and the ELT have secured their bonuses, lets not let greed fool us that this is in anyway a justified value.
This could not be more spot on.
"Summary
Cisco kicked off Q1 by touting its increasing pivot toward software and recurring revenues.
Relatively little of Cisco's software growth has been organic, and its portfolio of applications is both confusing and beset by competition.
The narrative shift is an attempt to direct attention away from continued bleeding in its networking portfolio.
After eight consecutive quarters of revenue decline, Cisco is forecasting a return to growth in Q2. This increases pressure on the company to execute and failure to do so would be disastrous for the stock."
Chambers wanted to go down in history as the greatest CEO so he hired Chucky to replace him.