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Cisco bins $450m router

Poor sales have forced Cisco to dump a product it acquired with its $450m purchase of Monterey Networks, despite the fact that the original buyout was supposed to boost its order book.
Written by Mark Graham, Contributor

Poor sales have forced Cisco to dump a product it acquired with its $450m purchase of Monterey Networks, despite the fact that the original buyout was supposed to boost its order book.

Cisco Systems' 15900 Wavelength Router came out of its acquisition of Monterey in August 1999 - a move that was supposed to give its telecoms sales a lift. But according to Gartner analyst, Ian Keene, it's a product that has soured. This is not the first time that shifting market conditions have left one of Cisco's acquisitions high and dry either, Keene told silicon.com. But Cisco claims this won't change its future strategy. Speaking to Globe Business Daily, CEO John Chambers said the company has no plans to change its predatory approach to other firms. However, he did admit that it will concentrate more on internal technical developments in future. The US slowdown has severely affected the number one internetworking manufacturer. Recent warnings that third quarter sales will drop five per cent on Q2 are the first time Cisco has faced a decline in revenues since it went public in 1991. In a keynote speech on Tuesday at Cisco's annual Partner Summit, Chambers admitted the economic decline will slow growth over the next 12 months. But he said it expects to pull through by focusing on corporate partnerships and paying closer attention to the financial stability of its customers.
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