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Cisco Restructures Consumer Business and Closes Flip Business

Apr 12 2011, 10:33am CDT | by , in News | Technology News

Cisco Restructures Consumer Business and Closes Flip Business
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Flip camcorders are dead

For a long time the Flip line of video cameras were among the most popular on the market. Flip offered small and very portable camcorders like the Flip Ultra and Mino lines that were targeted at the user looking for a cheap and functional camera to put video on YouTube with. Cisco purchased the Flip brand back in March of 2009.

Almost exactly two years later things haven't worked out well for Cisco and it has announced that it will be restructuring and closing down the Flip business. This is really bad news for the fans of Flip cameras and those that own the brand. Cisco says that the closing of the Flip business is part of its plan to align its operations with core offerings.

The core offerings that Cisco wants to focus on going I forward are core routing, switching and services, collaboration, and architectures and video. Presumably, by video they are not talking bout cameras and camcorders like the Mino since Flip is being closed down. I would assume they mean cameras for computers, but that isn’t clear. Cisco will close down the Flip business and will offer current FlipShare customers, and partners a transition plan.

It plans to refocus its home networking business for more profitability and connection with core network infrastructure and expand its video platform in the home. Cisco also wants to integrate umi into the Business TelePresence product line and assess core video tech integration with the Eos media solutions business.

"We are making key, targeted moves as we align operations in support of our network-centric platform strategy," said John Chambers, Cisco chairman and CEO. "As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network's ability to deliver on those offerings."

Cisco is warning that the changes to the consumer business won’t come without a price. It anticipates that the restructuring charges to its GAAP financial results will combine for a pre-tax impact of no more than $300 million during Q3 and Q4 of fiscal 2011. Cisco also expects to shed about 550 workers as a result of the restructuring in Q4 fiscal 2011.

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