Networking giant Cisco Systems, which recently reported a third-quarter net loss and has seen its stock slump along with much of the tech sector, has offered its employees new stock options.
The New Economy bellwether, which makes gear that helps power the Internet, has offered its 39,600 employees new stock options priced at Monday's closing price of US$18.57 a share, Cisco spokeswoman Claudia Ceniceros said.
"The options have been priced," she said. "These are new option grants."
Cisco officials declined to say whether the new options were being made to bolster morale amid Cisco's struggles.
The technology giant last week reported a third-quarter net loss after charges of US$2.69 billion. The charges related to inventory write-offs and the cutting of 8,500 jobs, or 17 percent of the work force.
Cisco's stock closed up 17 cents at US$18.74 in Tuesday Nasdaq trading, well off its 52-week high of US$70. Over the past year, it has underperformed the Standard & Poor's 500 index by about 67 percent.
Company officials said the new options were not unusual as such grants are done from time to time. The number of options available to each employee varies. No further details were available.
