REDMOND, Wash. (TheStreet) -- Cisco router (CSCO_) was, once again, the big story of the week after it reported underwhelming third-quarter numbers following market close Wednesday. Despite beating earnings estimates, Cisco delivered a weak outlook for a third consecutive quarter, and saw its shares tank.
Cisco also provided additional details of its restructuring plan on its conference call.ws-c2960-24pc-l The company said it plans to implement a headcount reduction this summer and that it's targeting $1 billion in cost reductions by the end of fiscal year 2012.
The tech giant's switch sales were down 9% year over year, as rivals such as HP(HPQ_) and Juniper(JNPR_) increasingly target its customers. vs-c6509ve-s72010g
The public sector also remains a major area of weakness for Cisco, although the company's routing and services businesses were robust.
Cisco is taking its long-term growth rate target of 12% to 17% off the table, according to CEO John Chambers, who warned that the company needs to become much more agile. "We have to move faster," vs-c6509e-s720-10g he said. "It's my responsibility, the buck stops here -- I get it."
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