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News

  • Power-over-Ethernet patent holder files ITC complaint against Cisco

    Canadian intellectual property licensor Mosaid Technologies has filed a compliant with the United States International Trade Commission (ITC) alleging that Cisco Systems is violating patents it holds.
    The company says six of its patents are being infringed by certain Cisco products, including Power over Ethernet (PoE) switches and routers, DSL and cable modem wireless access points, PoE IP phones and VoIP cable modems. Mosaid is requesting that the ITC halt the "unlawful importation and sale" of these and certain other Cisco products in the United States.
    "We filed this complaint with the ITC because we believe that Cisco, the global market leader in PoE-enabled networking and communications products, is infringing Mosaid's PoE patents and requires a licence," says Mosaid CEO John Lindgren in a statement. "We are determined to protect our intellectual property for the ultimate benefit of our shareholders," Lindgren says.
    Mosaid's patents relate primarily to PoE. Mosaid and Cisco are currently involved in a patent infringement litigation case with respect to 10 of Mosaid's PoE patents, in the US District Court for the District of Delaware.
    That case was initiated by Cisco last August; the six patents at issue in Mosaid's ITC complaint are also part of the Delaware case.
    Cisco says Mosaid's latest complaint seeks to circumvent the Delaware litigation.
    "Cisco filed a declaratory judgment action in Delaware because we believe our products do not infringe Mosaid's patents, and we are disappointed that Mosaid is now attempting to evade the jurisdiction of the Delaware court," the company said in an emailed statement. "Further, it is ironic that a Canadian company that purchases patents can claim to be a 'domestic industry' seeking to have the ITC -- a US government office created to protect US manufacturers -- block Cisco from being able to sell its products in the US. With more than 10,000 engineers and 7500 patents in the US, Cisco has long been viewed as one of our country's top innovators."
    Cisco was ordered to pay $112 million to patent acquirer and licensor Network-1 Security Solutions last year in a PoE infringement case.
    Mosaid owns and licenses patented intellectual property. Its property includes semiconductor and communications system patents, and it also develops semiconductor memory technology.

  • Cisco profit fell 11 percent in third quarter

    Cisco Systems' revenue for its fiscal third quarter grew less than 5 percent from a year earlier, while its earnings per share fell 11 percent, the company reported on Wednesday.

  • Cisco offers early retirement to older employees

    Cisco Systems has instituted a voluntary early retirement programme, its first in two years, in an effort to reduce costs.
    The program is aimed at a segment of US and Canadian employees at least 50 years old who have a combined age plus years of service with Cisco totaling at least 60, as of July 8, 2011. Eligible employees have from May 10 to June 24 to accept it.
    “Cisco employs a variety of different methods to control costs and align investment dollars, and offering this voluntary early retirement program to those eligible employees in the US and Canada is part of our ongoing commitment to responsible business management,” states Cisco spokesperson Karen Tillman, in an emailed response to Network World.
    Tillman did not say what Cisco’s targets are for cost or workforce reduction through the Enhanced Early Retirement (EER) program. She said there will be little to no impact in Cisco’s current third quarter, which ends later this month, and that it was too early to tell if it would affect the company’s fourth quarter.
    Cisco is revamping operations after consecutive quarters that saw revenue and profits in some core and tangential markets slump. CEO John Chambers issued a candid assessment of the company a few weeks ago that promised changes in order to get Cisco back on track.
    Those changes began two weeks ago, with the closure of Cisco’s Flip videocamera operations and a restructuring of the company’s consumer business – one of the lowlights of Cisco’s fiscal second quarter – that cost 550 jobs. The EER is another step in that plan.
    Cisco last instituted an early retirement program in 2009, during the economic recession. That program was “very well-received by employees, and requests have been made to consider offering a similar opportunity now,” states Brian Schipper, Cisco senior vice president of global human resources, in a letter obtained by Network World.
    Cisco eliminated more than 1,500 to 2,000 employees in fiscal 2009, reducing expenses by more than $1.5 billion.
    Under the EER established this week, non-commission-incentive employees will receive one year’s regular base pay plus their annual incentive target amount. Commission-incentive employees will receive 80% of one year’s regular base pay, plus 80% of their annual target commissions. Severance will be paid after their release becomes irrevocable, according to EER documents obtained by Network World.
    Health benefits will include a lump-sum payment equivalent to 24 months of current medical, dental, and vision coverage. The amount is determined for each participant based upon current coverage elections, and the amount will be “grossed up” for tax purposes, according to the EER documents.
    Cisco will also provide 401(k) retirment plans and stock payments to eligible employees. For 401(k) plans, the company will provide a one-time payment equal to approximately two years of company matching contributions, paid as a lump sum outside of the 401(k) plan. Payment will be calculated as 4.5% multiplied by total 2011 target compensation, up to a $245,000 limit, regardless of participants’ actual 401(k) participation level.
    Certain former employees of Scientific-Atlanta, a company Cisco bought in 2007 for $6.9 billion, will have their 401(k) payouts calculated at 6% instead of 4.5%, according to the EER documents. There will be a similar calculation, but different limits, for Canadian employees.
    Employees have a 24-month window after termination to exercise any vested options that are underwater at termination, the Cisco EER documents state. There is no extended vesting period for restricted stock, and no acceleration of vesting for any equity-based programs.
    Even though the EER is voluntary, eligible employees who choose not to participate may face downsizing eventually, according to one source within Cisco who requested anonymity.
    “Last time they offered the Early Retirement package in 2009, it was heavily rumored that if it was offered and you didn't take it then you would be terminated anyway,” the source said.

  • Cisco urged to fold more than Flip

    Flip shouldn't be Cisco's only fold in the <a href="http://www.networkworld.com/news/2011/041211-cisco-shutter-flip.html?hpg1=bn">challenging consumer market</a>, industry watchers say.

  • Analysis: Cisco Flip-flops on consumer market plans

    Cisco Systems' exit from its Flip business and other consumer technologies , announced Tuesday, comes less than 16 months after CEO John Chambers proudly announced Cisco's ascendency into consumer electronics and video products at the Consumer Electronics show in Las Vegas.

  • Cisco Linksys gear targets boom in wireless home use

    <a href="http://www.networkworld.com/subnets/cisco/">Cisco</a> Tuesday announced a slew of routers and switches designed to address the explosion of home networked devices, from <a href="http://www.networkworld.com/slideshows/2010/061510-smartphone-history.html">smartphones</a> to table computers to Internet-enabled TVs.

  • Cisco buy boosts cloud services

    Cisco has announced its intent to acquire privately-held newScale, a provider of software that delivers a self-service portal for IT organisations to select and deploy cloud services within their businesses.

  • Cisco names first COO as vendor reinvents itself

    Cisco Systems has named Gary Moore as its first COO, formally giving CEO John Chambers a sidekick to help transition the switching and routing king into new markets in the datacentre and beyond.

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