Feeds

Cisco woe as HP's Fiorina joins board

Is she advising on how to handle missed profit targets?

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

The outlook for networking giant Cisco took a gloomier turn yesterday after the publication of a pessimistic report by an analyst and an admission by its chief executive John Chambers that the current quarter is "a little bit more challenging" than expected.

"Is the economy slowing? Absolutely - it is slowing faster than people realise," said Chambers.

"When people look to cut costs, we'll be nicked. But we will be less affected than others," he added.

Despite this note of caution, Cisco is sticking by its earnings and sales estimates. Its results are due on February 6.

Consolidation in the US telecoms market has resulted in a slow-down of demand for the high-end networking equipment from service providers. Cisco is probably better insulated from this effect than its competitors, because of its wide product base, but a slow-down in the enterprise space would leave Cisco facing a double whammy of a slowdown in its two key market segments.

Most analysts expect Cisco to benefit from the demand for faster networks, but the view is far from universal. Earlier this week CIBC World Markets analyst Steve Kamman said in a research note that Cisco's glory days may be over, arguing that its strategy of keeping itself at the technological edge through acquisitions is about to hit the buffers.

In related news, Cisco announced that Hewlett-Packard's chief executive, Carly Fiorina, has joined its board as a non-executive director. Fiorina was previously president of Lucent's global service provider business.

Earlier this week it emerged that Fiorina's gave back $625,000 of her HP salary because the company missed earnings targets. Cisco has never failed to meet its targets, so is it too mischievous to ask whether Fiorina has been brought in the advise on how this might be managed gracefully at Cisco? ®

Related stories

IT budgets not growing so fast, shock horror
Cisco looks rosy, 3Com peaky
Cisco IPv6 kit to ship next February
Lucent to restate sales and cut 10,000 jobs
Foundry issues second profit warning

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
IT crisis looming: 'What if AWS goes pop, runs out of cash?'
Public IaaS... something's gotta give - and it may be AWS
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
Troll hunter Rackspace turns Rotatable's bizarro patent to stone
News of the Weird: Screen-rotating technology declared unpatentable
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.