Feeds

Cisco revenue dip means 6,000 staff to be de-assimilated

Q4 results show emerging markets revenue falling, US flat, competition rising

Secure remote control for conventional and virtual desktops

Facing rising competition, Cisco has announced another round of layoffs – 6,000 – in financial results that beat analyst expectations but were still flat.

Presenting the company's latest quarter results, CEO John Chambers announced the latest round of layoffs, but was at least able to give a sliver of good news, with revenue dipping 0.5 per cent in the quarter to US$12.4 billion, while Wall Street had expected the number to be $US12.1 billion.

Cisco's previous guidance for the quarter had been a revenue decline between one and three per cent. Net profit was US$2.8 billion, flat compared to the same quarter in the previous year.

The layoffs represent eight per cent of its global workforce, already thinned out after three years of downsizing had previously lopped 18,000 from the company's headcount.

On the Cisco earnings call, Chambers said emerging markets “lost momentum” in Q4 2014, naming China, Brazil, Mexico, India and Russia as struggling.

While China is less than five per cent of total revenue, at US$2 billion, Cisco had once hoped it offered growth potential. Instead, rising state protectionism, hostility in the wake of Edward Snowden's revelations about NSA spying, and strong local competition led by Huawei have led to a series of disappointing quarters in the Middle Kingdom.

In the US market, Cisco has been trying to come to terms with competition posed by software-defined networking, and as the San Jose Mercury News notes, Cisco's entry into the server business has riled longtime billion-dollar resellers HP and IBM. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?