The 10 Biggest Networking Stories Of 2013

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6. Cisco's Wall Street Woes

The full impact of SDN on industry kingpin Cisco is far from realized. But when the company lowered its outlook for its current fiscal quarter, along with its long-term outlook for the next three to five years, it sure had Wall Street worrying.

During its first-quarter earnings call in November, Cisco warned investors that it expects its second-quarter revenue to slide between 8 percent and 10 percent and, according to Reuters, prompted at least 17 brokerages to cut their price targets on Cisco stock and two to downgrade their ratings. As some of those brokerages expected, Cisco at its financial analyst day in December also cut its long-term growth trajectory for the next three to five years from 5 percent to 7 percent to 3 percent to 6 percent.

Cisco CEO John Chambers attributed the drop primarily to continued weakness in Cisco's emerging markets and service provider business. The company's share slipped again, this time a less drastic 2 percent.


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