Tomahawk, WI 02/21/2014 (BasicsMedia) –  Lately, reports have emerged that indicate Cisco Systems Inc (NASDAQ:CSCO) is not enjoying the best of times. The company has been compared with IBM, which is yet another giant in the world of tech firms, but is similarly enduring some of its toughest moments to date. How can two of the world’s largest tech firms be struggling in this manner? What is of more concern is that the struggles Cisco Systems Inc (NASDAQ:CSCO) has endured of late have created a lot of doubt on the part of shareholders and Wall Street analysts. There is now genuine fear that the company may have failed to keep up with the ever-changing landscape, and is unable to transfer its past successes to the present.

Cisco Systems Inc (NASDAQ:CSCO) appears to be under a sustained period of declining revenue. Some of the issues that are responsible for the declining revenue are also a major threat to Cisco’s future. It has now emerged that the company is not doing as well as it hoped in the emerging markets. This serious issue needs to be tackled as soon as possible, if Cisco is to offer the sort of leadership investors and Wall Street has come to expect of it. Cisco’s second quarter financials reveal that the level of decline in revenue has been similar to what the company reported when releasing its first quarter results. The declining revenue is right across the board, and in crucial locations.

The top executives and senior management at Cisco Systems Inc (NASDAQ:CSCO) have said that they do not expect the results to be any different when it releases them for the next quarter. The company needs to find a way of turning the poor performance in the emerging markets around. If it is to keep growing, and reporting growing revenue, its best chances lie with the emerging markets. The company announced that its net income fell by about 54 percent, during the last quarter. Cisco says the drop in net income had to do with a one-off charge of around $655 million that it had to pay to clear issues regarding memory components that it sold in the earlier years.

A 54 percent drop in net income would often be easy to bear if the revenue did not suffer the same fate. However, in Cisco’s case, the company reported a drop of around 8 percent with its revenue during the last quarter. More worryingly is the fact that this has been a trend for quite sometime now. A one-off drop in revenue or net income would not be hard to handle, but when a pattern appears that shows this has been happening over a certain period, and that no change appears to be on the horizon, investors are justified when they get worried. Cisco Systems Inc (NASDAQ:CSCO) has to reverse this trend, if not in the next quarter, then in 2014 to reassure investors and Wall Street.

No matter what happens, it is too early to imagine that Cisco Systems Inc (NASDAQ:CSCO) is on its deathbed. The company may be struggling right now, but this has to do with its failure to keep up with the changing landscape. Cisco is still producing products that are in great demand, and needed in order to drive global economy forward.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.