Network gear maker Cisco has slashed its long-term forecasts and admitted that the era of growth was over.
It had been expected that Cisco's projections would be pretty bleak, but it had been hoped that they would have been good enough for CEO John Chambers to say "my work is done" and walk from the company.
According to Reuters , Chambers said that Cisco's its long-term revenue growth target by roughly half to five percent to seven percent from 12 to 17 percent previously. The new target was also below Cisco's estimate for total market growth of seven to eight percent.
But he predicted that 2012 gross profit margins would be much better. Chambers said earnings would grow at about 7 percent to 9 percent in the coming three years.
Rather than castigating the outfit. investors pushed its shares 1.6 percent higher. They appeared happy that Chamber's restructuring was bearing fruit.
In April, Chamber launched a estructuring after declaring that the outfit had lost its way. He reduced its workforce by about 15 percent and closed its Flip video camera division.
Chambers said customers he spoke to in the past 120 days had all pledged to either keep their spending with Cisco intact, or even increase it.
Having a look around the world wide wibble. Analysts have applauded the speed with which Chambers has restructured the business in roughly 120 days.
But it is clear that Chambers will only leave the outfit on a high-note so there were no talks of his succession right now.
Chambers seemed to imply that he would be around for another three years.