Cisco’s Chambers stresses shift to services; Facebook IPO suit lead plaintiffs named

A couple of developments involving big Silicon Valley companies:

• “The days of boxes are over,” Cisco CEO John Chambers tells the New York Times as he talks about shifting the San Jose networking company’s focus to services — designing and selling software and services. At an analyst conference today, Chambers reportedly affirmed the company’s long-term revenue growth target of 5 percent to 7 percent, compared with an analysts prediction of 6 percent sales growth in each of the next three years. Why the shift from networking “boxes”? Saying the mobile world has ensured “transitions are happening at a faster pace than ever before,” Chambers said that “two or three” from a list that includes Microsoft, SAP, HP, Oracle and his own company may not be around five years from now.

Cisco Systems shares were down more than 1 percent to $19.25 as of this post.

Facebook had been accused, via many a lawsuit, of misrepresenting its financials to investors before its initial public offering in May. A judge on Thursday named the lead plaintiffs in a proposed consolidated class-action lawsuit of 31 cases. They include the North Carolina Retirement Systems, Arkansas Teacher Retirement System, the Fresno County Employees’ Retirement Association and Banyan Capital Master Fund. Many investors were disappointed by Facebook’s IPO; the SEC had pushed the company for a clearer picture of, among other things, its outlook for ad revenue. (See Facebook probably dislikes this: Pre-IPO SEC dealings back in spotlight.)

 

 

 

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