The recent call pressed on the US Congress by Cisco Systems Inc., Google, Apple and other multinational corporations for a temporary tax break on offshore profits has not been approved. As mentioned yesterday in our earlier coverage, the issue needs further analysis from officials, as this would imply modifying the US tax code. It is indeed an important matter given the fact that these offshore profits go around $1 trillion. BusinessWeek recalls this is not the first attempt on asking for tax breaks in offshore profits; in 2009 the Senate rejected a similar enquiry that involved $30 billion.
Opportunity must be seized by congressmen that should make full use of their power to bring back offshore profits of companies such as Cisco, that have grand plans of expansion. Currently holder of $40 billion in cash stockpile and short-term investments, Cisco will be definitely be seeing returns on its investments. The company has been looking for some creative money-management, in part to curb stockholders from rejecting Cisco all together, having just recovered from a 52-week low in stock market prices.
On the product side, Cisco is also fully engaged in promoting its TelePresence portfolio via global distributor Comstor, offering enhanced business communication experiences.
“Our TelePresence portfolio is specifically designed to put people at the center of collaboration, changing the very nature of how they work,” said Scott Brown, vice president of worldwide distribution at Cisco. “Cisco is at the core of this change, as our rich collaboration suite empowers workers like never before – allowing them to become more productive by using video and face-to-face collaboration.”
Cisco’s competitors make the grade as well. Juniper announced at the beginning of this month that it expected its market opportunity to grow over 60 percent in three years’ time due to releasing advanced network equipment and hitting new grounds, such as mobile security. Juniper’s fourth-quarter revenue rose 26 percent to $1.19 billion.