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Cisco warned of problems on the horizon as it wrapped up it fiscal 2019 financial results [PDF].
[...]"Our Q4 results marked a strong end to a great year," Cisco CEO Chuck Robbins said of the numbers. "We are executing well in a dynamic environment, delivering tremendous innovation across our portfolio and extending our market leadership."
Where Cisco took a hit, however, was in its outlook for the fiscal 2020 first quarter. Switchzilla told analysts it only expects to see growth of 0-2 per cent year over year, and EPS will sit between 80 and 82 cents. Both were well short of what analysts had expected from the networking giant.
Cisco also warned that it was taking a big hit in China, where the ongoing trade wars and state-backing for local companies has got so bad that Robbins said his company has been "uninvited" and frozen out of bidding for deals with telcos in the Middle Kingdom.
(Score: 0) by Anonymous Coward on Friday August 16 2019, @08:19AM (2 children)
The Trump administration is not only short-sighted, they are also lacking in historical knowledge because the USA has tried protectionist tariffs before and it led to what we now refer to as The Great Depression. The markets have been giving us very clear indicators for the past year of a looming recession. It's not really a question of "if" but rather "when, how long, and how severe?". The Smoot-Hawley Act of 1930 is eerily similar to the current China tariffs. That said, economics are global now so maybe it will turn out better this time.
https://en.wikipedia.org/wiki/Smoot%E2%80%93Hawley_Tariff_Act [wikipedia.org]
Every American who votes in the 2020 election has a duty to understand this subject; even if only superficially.
(Score: 0) by Anonymous Coward on Friday August 16 2019, @03:13PM (1 child)
Lot of ‘forgoing partnerships’ with local partners in this old article on Cisco. Guess what, that wasn’t voluntary, it was a requirement to do business there : transfer tech to the local partner
https://www.dowjones.com/scoops/cisco-connects-with-chinese-partner-to-bolster-struggling-china-business/ [dowjones.com]
Huawei was kicking Cisco’s butt in China anyway And ironically Huawei got its start stealing Cisco’s router tech.
https://www.forbes.com/sites/arthurherman/2018/12/10/huaweis-and-chinas-dangerous-high-tech-game/#38c8889e11ab [forbes.com]
If anyone should praise the trade war it should be Cisco but they want their crumbs, crumbs are better than nothing.
(Score: 2) by HiThere on Friday August 16 2019, @05:54PM
Since they didn't already *have* business there, yes, that was a voluntary action. They looked at the risks and plunged ahead. It's quite reasonable to say that was stupidly shortsighted, but it was voluntary shortsighted stupidity.
I don't really know anything about routers since simple token-ring networks were the standard, so I can't comment on just how much Huawei benefited from Cisco's proprietary information.
Javascript is what you use to allow unknown third parties to run software you have no idea about on your computer.