Report: Cisco troubled by slowing enterprise business

Cisco is headed for a disappointing quarter, according to a cautionary research note issued Monday from a research analyst, reports Barron's Online.

Samuel Wilson, an analyst at JMP Securities writes that the slow down in U.S. enterprise business during Cisco's fiscal second quarter has continued into its current quarter, according to Barron's.

According to the Barron's story: "Wilson writes that 'according to resellers, top Cisco sales staff have recently expressed concerns about making their April quarter numbers.” He says that the company has apparently increased “partner-focused incentives' designed to shift business in from the July quarter. 'Based on the past three months, many resellers now believe that U.S. enterprises have begun to delay discretionary spending above and beyond normal seasonality typical of the [calendar] first quarter.'

Wilson also wrote that Cisco has cut headcount and expenses in its enterprsie switching business unit. He forecasts Cisco's fiscal third quarter revenue to be $38.1 billion, down from the consensus estimates of $39.4 billion, according to Barron's.

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