The analysts noted gross and operating margins have fallen since 2004, while revenue and earnings per share are at the same levels as in 2008.
“This is mainly due to its end markets maturing, competition increasing (from Asian manufacturers and other IT companies) and loss of market share in its core products (switches and routers); as well as the recent recession,” they wrote. “A new strategy is being adopted, but this is a large company and a turnaround will probably take over a year.”
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