Updates to this story
Networking giant Cisco has released its third quarter figures and surprised the cocaine nosejobs in Wall Street by being rather good.
CEO John Chambers said the company has "a clear game plan" to "transition to the next phase". We thought that the phrase "transition to the next phase" was a euphemism for death and therefore a clear game plan would involve falling on a sword. However this does not appear the case and we need to update our copy of "Management Bullshit Speak for Dummies".
Cisco has been taking the axe to the company over this quarter. It flipped shut its Flip camera business and reorganised to "improve focus", on the company rather than the defunct camera.
It seems to have paid off. Cisco reported fiscal third-quarter earnings of $1.8 billion having made $10.9 billion.Wall Street was expecting a revenue of $10.85 billion.
After casting a bloodshot eye over the figures they noted that Cisco didn't deliver its outlook in its earnings statement. In the past Cisco has mentioned lighter earnings in the future while short term results have been good.
The reason for this was that Chambers wanted to talk up the company future in his post-result chats with analysts.
Apparently he told them that Q4 will continue to show weakness, while we do the hard work behind the scenes to be able to execute these changes, and would provide Q4 guidance that reflects that lag, Chambers told them.
He said that he knew what he had to do and had a clear game plan. However we guess that means that we will not see a turn around for Cisco until next year.