SAN JOSE, CA and NEW TAIPEI CITY, TAIWAN--(Marketwire - Jul 18, 2011) - Cisco (NASDAQ: CSCO), the worldwide leader in networking, announced today an agreement with Foxconn Technology Group, the world's leading electronics manufacturer, for the sale of its manufacturing facility in Juarez, Mexico. The agreement is another step in Cisco's efforts to streamline operations and supports Foxconn's commitment to co-locate with customers in order to better meet their end-market needs. The companies will work closely to ensure a smooth transition and minimize any impact on customers and employees.
Cisco assumed ownership of the 5,000-person Juarez facility with the acquisition of Scientific Atlanta in 2006. The facility manufactures video and telecommunications equipment for the service provider market. The agreement brings Cisco's video equipment manufacturing in line with the company's overall strategy of partnering with world-class contract manufacturers to deliver the highest-quality products to customers. The agreement also positions the companies to further expand their strategic partnership in North America.
Gary Moore, Executive Vice President and Chief Operating Officer, Cisco said, "Today's announcement further simplifies and consolidates Cisco's manufacturing operations. After working closely with Foxconn for many years, we know they are a strong strategic fit with Cisco's long-term goals and are committed to a successful future in North America. We remain fully committed to our service provider customers and partners, and will continue investing in existing and new video platforms, including set-top-boxes, as part of our Videoscape vision."
Michael Ling, General Manager of Foxconn's Communication and Network Solutions Business Group added, "Through this strategic alignment with Cisco, we will be able to leverage the operation's unrivalled talent, technology, and expertise in video and telco infrastructure to broaden our end-to-end vertical supply chain services in the video, broadband, networking, and telecommunications infrastructure sectors."
The transaction is subject to regulatory approvals and is projected to close by October 2011.
Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.
About Foxconn Technology Group
Foxconn is the world's most trusted and preferred partner in all aspects of global electronics outsourcing. As it works to help its customers reduce business risk, Foxconn pursues its mission of increasing the affordability of environmentally-friendly electronics products for people and businesses around the world by continuing to re-define end-to-end services. Information about Foxconn is available at www.foxconn.com.
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the sale of Cisco's manufacturing facility to Foxconn, the expansion of the company's strategic partnership, the simplification and consolidation of Cisco's manufacturing operations, Cisco's commitment to our customers and partners, and the timing of the transfer and its impact to customers. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, how well we execute on our strategy and operating plans, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent report on Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.