Cisco System Inc. CEO John Chambers is vowing to take “bold steps” to narrow the company’s focus.
Shares of the world’s biggest maker of computer-networking gear rose 3.3 percent.
The San Jose-based company has branched out beyond its core business of designing and selling consumer electronics, networking, voice, and communication technology and services.
It has moved into related areas like digital cameras. However, the company is in a harsh competition from rivals in its core business.
Chambers said that recent missteps were “unacceptable” and promised to make some major changes.
Cisco System (NASDAQ: CSCO) depends too much on revenues from state and governments. Its earnings in three quarters were poor. As of 2010, the company has annual revenue of US$ 40.0 billion.
Technology stocks led stocks higher Wednesday after Cisco CEO’s promise and an Oppenheimer analyst’ upgrade of wireless communications chipmaker Broadcom (NASDAQ: BRCM).
Shares of Broadcom Corp added 4.3 percent. The company was said to gain benefit from continued growth of mobile and wireless phones. In 2010, its total revenue was $6.82 billion. Currently, it is among the Worldwide Top 20 Semiconductor Sales Leaders.
Netflix Inc. was up 1 percent thanks to its announcement of streaming the hit TV series “Mad Men”. In 2009, its subscribers surpassed 10 million.
Abercrombie & Fitch Co. (NYSE: ANF), focusing on casual wear for consumers ages 18 through 22, advanced 2 percent, fueled by expect on the retailer’s strong 2012 earnings and international prospects.
Shares of Microsoft Corp. (NASDAQ: MSFT, NYSE: MSFT) and Apple Inc.,(NASDAQ: AAPL, LSE: ACP) advanced 1 percent.
On the contrary, shares of Monsanto Co. dropped 3 percent as its earning forecast fell short of analysts’ expectations.
