Cisco has unveiled new financial targets at a meeting with analysts. Over the next three years, the company targets a compound annual growth rate for revenues of 5-7 percent and for EPS of 7-9 percent, while its adjusted operating margin should remain in the mid-20s in percentage terms. While slower than the company's growth in recent years, Cisco was upbeat about the possibilities for growth, both by strengthening its position in the core router and switches market and bundling its products and services. Cisco forecast annual market growth in routers of 5-7 percent and in switches of 2-4 percent over the coming three years. In addition to these products, the company will focus on growth in collaboration products, data centre architecture and cloud computing, video products and 'business transformation' architectures. The company has been preparing its organisation to meet the growth targets with the restructuring launched earlier this year. Cisco said it has already cut USD 1 billion in costs and 23,000 employees have seen their work affected in order to implement the new plans.
