San Jose, Calif. – Two years after acquiring the Flip Video
camera unit of Pure Digital for $590 million, Cisco (NASD: CSCO) announced on Tuesday that
it will shutter the business. The company will cease sales of Flip cameras, but
said it will "support current FlipShare customers and partners with a
transition plan." The move comes as smartphones such as the iPhone have in
recent years added HD video cameras to their feature sets.
Cisco also said it
will re-focus its home networking business, and integrate other business units
in a restructuring its said will bring charges of around $300 million during
its fiscal third and fourth quarters.
The changes are also expected to result
in the laying off of around 550 employees in the fourth quarter.