Feb. 22 (Bloomberg) -- Cisco Systems Inc., the largest maker of networking equipment, named Gary Moore chief operating officer, a new position, less than two weeks after quarterly results disappointed investors and fueled a share-price slump.
Moore, 61, will oversee the engineering, marketing, operations and services organizations, Cisco said today in a statement. Moore has worked for the San Jose, California-based company since 2001 and previously oversaw the services unit.
The company, which makes routers and switches that direct Internet traffic, is targeting more than 30 new businesses to reach a long-term goal of as much as 17 percent annual revenue growth. Four straight quarters of share declines after earnings reports reflect concern that Cisco may be moving in too many directions at once, and Chief Executive Officer John Chambers has said that managers need to be more accountable.
“Cisco is really under pressure to demonstrate that they have more control over operations,” said Joanna Makris, an analyst at Mizuho Securities USA Inc. “They’ve had market-share erosion and execution challenges. This is part of Cisco’s repair strategy.”
Cisco fell 14 percent on Feb. 10 in Nasdaq Stock Market trading, a day after the company posted fiscal second-quarter gross margin that missed analysts’ estimates. Three months earlier, on Nov. 11, the shares slid 16 percent after the company’s profit and sales forecast fell short of analysts’ projections.
In trading today, Cisco dropped 26 cents, or 1.4 percent, to $18.59 at 2:45 p.m. New York time.
Cisco is introducing a new generation of networking equipment at the same time as it pushes into dozens of other businesses, including digital cameras, videoconferencing equipment and social-networking tools.
The product expansion is part of an effort to meet the revenue goal announced by Chambers two years ago. In the meantime, as the company works to get traction in these side businesses, they are weighing on profitability. This fiscal year, sales will grow as little as 9 percent as Cisco faces lower spending from governments and market-share losses in its television set-top box business, the company said on a conference call last quarter.
Jonathan Kaplan, who headed the company’s consumer business, left earlier this month, Cisco said on its website. Marthin De Beer, who oversees emerging technologies at Cisco, replaced Kaplan.
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