On Thursday May 8 a blog entry posted on Network World accused Cisco of a practice known as”channel stuffing” based on the financial information we presented in our Q3 FY ’08 earnings call. Given this serious and inaccurate claim, Cisco felt it was important to present some detailed facts that refute these allegations. First, Cisco employs conservative policies regarding revenue recognition. For example, in our distribution channel, Cisco does not recognize revenue until product leaves our channel partner, effectually removing any possibility of recognizing revenue before it’s sold to the end customer. Second, as we said on our quarterly call,”-Q2 and Q3 include the effect of several large multi-year service agreements, which has increased the DSO (days sales outstanding) in each quarter by three to four days.” This would be sufficient to increase accounts receivable if recorded at the end of the quarter and is not related to inventory or channel partners. Finally, it’s important to put the scope of the amount in question in proper context. From a financial perspective, $20 million represents 0.2% of our Q3 FY ’08 sales, which were $9.8 billion. Cisco has always acted openly and transparently in disclosing financial information, a fact consistently recognized by the investment community.Post by Terry Alberstein, Director, Corporate Communications
Statement by Bruce Klein, VP of Federal Sales, and Phil Wright, Director, Brand ProtectionAs you may have read, the FBI has identified a number of unauthorized companies that have sold products with the Cisco trademark to various government agencies and other organizations. This is of major concern to us, and we wanted to take a moment to share the efforts we are taking to ensure only legitimate Cisco products end up in the hands of our loyal customers.Unfortunately, counterfeiting is not a new issue in the IT industry or indeed in any successful global enterprise. Because our customers expect and deserve the highest-level of satisfaction when purchasing Cisco products, we actively monitor the counterfeit market and have longstanding processes in place to address this challenge.As part of our commitment to the integrity and quality of Cisco technology and services, our Brand Protection team leads an aggressive, concerted and company-wide effort to prevent potential damage to our brand and to our customers as a result of counterfeiting. Because counterfeiting is a criminal activity, we work closely with law enforcement agencies worldwide whenever those agencies decide to take action against those who would profit by this illegal conduct. In this instance, Cisco has collaborated with the FBI and other Federal law enforcement, and we appreciate their hard work in this important area. We have participated in many aspects of the investigation, and have proactively briefed high-level individuals at multiple government agencies.So what can you do? We can’t stress enough the importance to Cisco customers and channel partners of procuring equipment only from Cisco authorized channels. If you have any questions or concerns I would recommend calling your Cisco representative or authorized reseller immediately.Again, we appreciate the hard work by the FBI in this case as well as the efforts by all law enforcement agencies in cracking down on the counterfeit market. This is a serious issue that we are diligently fighting every day to ensure our customers receive only genuine Cisco products.
Cisco is pleased to be recognized by the Service & Support Professionals Association (SSPA) for its innovative Cisco Smart Call Home service capability which was awarded a 2008 SSPA STAR Award for Best Practices in the category of”Best Embedded Product Support”. See press release here.Beyond helping customers with technology roll-outs, Cisco also helps customers operate their Cisco solutions throughout their lifecycle and this award recognizes the innovative approach we’ve taken with Cisco Smart Call Home. Unique in the networking industry, Smart Call Home offers proactive diagnostics and real-time alerts on Cisco devices that can automatically engage TAC in potential issues and determine resolution steps by the time network administrators are even aware there is a problem. The Smart Call Home service capability is embedded today in the Catalyst 6500, MDS 9000 and 7600 with support for many other Cisco devices over the next 12 months.SSPA is the largest and most influential industry trade group for technology service and support professionals with nearly 200 member companies globally (www.thesspa.com). Smart Call Home is a Cisco service capability available as part of Cisco’s SMARTnet service. Post by Linda Horiuchi, Cisco PR Manager
Most of the attention on Cisco yesterday was naturally on our earnings announcement, but it was also a big day for us for another reason: we had the privilege to help open the new Sports Museum of America in New York City. Cisco’s technology is behind many of the interactive features of the new museum and in this video, our VP of Marketing, Alan Cohen explains what visitors can expect to see. Courtesy of my colleague, Chris Barker, we also catch a glimpse of the day’s opening events which featured a dedication by New York Giant’s quarterback, Eli Manning, and a pageant of sports legends including Olympic gold medalist Carl Lewis and tennis legend, Billie Jean King. See if you can recognize your favorite among them….
Anytime, anywhere access to the network is a requirement for efficiency and productivity. Randy Regimbal, Director of Network Services at Mayo Clinic, is maximizing the benefits of using mobile technologies to help contribute to healthcare leadership at the Mayo Clinic as “the first and largest integrated, not-for-profit group practice in the world” which treats over 500,000 people each year. He also offers insight into future applications of mobility within the healthcare industry.
“In the next few years, the most critical way mobility will be used in healthcare is to improve efficiency. It no longer makes sense for a worker to use fixed devices 50 times a day when we see an increasingly mobile workforce.”- Randy Regimbal, Director of Network Services, Mayo Clinic