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, a spokeswoman said.
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 $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 San Jose, California-based technology giant last week reported a third-quarter net loss after charges of $2.69 billion. The charges related to inventory write-offs and the cutting of 8,500 jobs, or 17 per cent of the work force.
Cisco's stock closed up 17 cents at $18.74 in Tuesday Nasdaq trading, well off its 52-week high of $70. Over the past year, it has under-performed the Standard & Poor's 500 index by about 67 per cent.
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.