Couple of news items on Cisco…
1. There are reports that Cisco is cutting its workforce in China – the layoff is rumored to be mostly sales positions. CSCO has two offices in Shanghai, one for R&D and one for sales – the cut would reportedly not impact the R&D office. Cisco denied the rumor when contacted by The Global Times of China. China is about 3% of Cisco’s revenue. Cisco reports quarterly results on August 14.
2. Cisco settled an $8.6M lawsuit w/ a whistleblower over faulty video surveillance software – there were security flaws that permitted hacking of Cisco’s video surveillance software which Cisco sold to the military, multiple federal agencies, international airports, etc. The whistleblower identified the issues in 2008 and reported them to Cisco, but apparently Cisco did not alert customers until 2013 of "multiple security vulnerabilities " in the software. Cisco said, "there was no allegation or evidence that any unauthorized access to customers’ video occurred"…though video feeds could "theoretically have been subject to hacking."
Sarah Kanwal
Equity Analyst, Director
Direct: 617.226.0022
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square, Suite 500
Boston, MA 02109
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[tag CSCO]