Cisco slashes forecasts
Company has been facing increasingly stiff competition from rivals
Cisco Systems has slashed its three-year revenue forecast in half as market competition increases and economic growth slows, according to the BBC.
Cisco revealed that it now predicts annual revenues to grow by 5 to 7% in the next three years, a large cut from the 12 to 17% predicted previously.
Cisco said that profits would rise 7 to 9% during the same period despite the revenue prediction slash.
Cisco's stocks grew 1.6% on Tuesday on Wall Street following the announcement.
Cisco began cutting costs in April, in a bid to boost profit margins. In April the company decided to focus on its core business and has since shed almost 13,000 jobs, sold a manufacturing plant in Mexico and shut down its consumer camcorder unit Flip Video.
In September Cisco announced it was cutting 6,500 jobs from its global workforce to save $1bn.
Cisco has been facing increasingly stiff competition from companies such as Juniper Networks and Huawei Technologies.
Gary Moore, Cisco's chief operating officer revealed ten areas where the company is making cuts or exiting business altogether and 11 areas where it was reducing or delaying investment, during Tuesday's annual analyst meeting,
Moore said that the company was refocusing on seven key areas: security, mobile internet, servers and access, network virtualisation, cloud-systems management, and software and tele-presence.