Cisco leaves consumer market

In connection therewith the company management solved:

• close the business connected with Flip video cameras, having given support to the existing customers and partners in promotion of the software of FlipShare at a transitional stage;
• retarget business of home networks on achievement of higher profitability and connection to reference network infrastructure of Cisco taking into account that the network extends, turning, including, to the video platform for the house environment. The corresponding products Cisco which are considered as the best in the industry will and extend further through retail partners of the company;
• integrate the solution Cisco umi in TelePresence product family for business and further for an output of this product to the market to use the business model applied by Cisco in corporate and operator sectors how the products TelePresence are now promoted;
• consider the possibility of inclusion of media solutions of Cisco Eos in reference video technology or study perspectives of use of other market opportunities for this business.

Due to the changes in consumer business of Cisco it is supposed that the company will reckon expenses on restructuring when summing up the activity according to the rules GAAP. It is expected that in the third and fourth quarters of 2011 financial year Cisco expenses on restructuring (net of any taxes) will not exceed 300 million US dollars. Exact parameters of these expenses will be disclosed at the declaration of results of activity of the company and entered to quarterly reports on form 10-Q. Besides, it is expected that in connection with the above in the fourth quarter 2011 financial year of Cisco will reduce about 550 jobs.