Cisco (CSCO) Announces Consumer Business Shift; To Close Flip Segment, Cut 550 Jobs

Cisco (Nasdaq: CSCO) announces a consumer business realignment.

As part of its plan, Cisco will:

• Close down its Flip business and support current FlipShare customers and partners with a transition plan.
  
  
• Refocus Cisco's Home Networking business for greater profitability and connection to the company's core networking infrastructure as the network expands into a video platform in the home. These industry-leading products will continue to be available through retail channels.
  
  
• Integrate Cisco umi into the company's Business TelePresence product line and operate through an enterprise and service provider go-to-market model, consistent with existing business TelePresence efforts.
  
  
• Assess core video technology integration of Cisco's Eos media solutions business or other market opportunities for this business.

In connection with the changes to the consumer business, it is anticipated that Cisco will recognize restructuring charges to its GAAP financial results, with an aggregate pre-tax impact not expected to exceed $300 million during the third and fourth quarters of fiscal 2011.

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