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posted by janrinok on Friday August 16 2019, @04:08AM   Printer-friendly
from the revenge-for-huawei dept.

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.


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  • (Score: 3, Informative) by captain normal on Friday August 16 2019, @04:18AM

    by captain normal (2205) on Friday August 16 2019, @04:18AM (#880877)

    Maybe that's the reason for the layoffs. Guess things are not going to well at Cisco.
    https://www.sfgate.com/news/bayarea/article/Cisco-Lays-Off-Nearly-500-Employees-At-Sj-14308139.php [sfgate.com]

    --
    When life isn't going right, go left.
  • (Score: 5, Insightful) by Snotnose on Friday August 16 2019, @05:23AM (2 children)

    by Snotnose (1623) on Friday August 16 2019, @05:23AM (#880901)

    After all, Cisco has been caught feeding the NSA information. AFAIK no Chinese company has been caught red handed feeding the Chinese government information. I'm heard lots of rumor, ennui, and "they're Chinese, of course they do", but no evidence.

    --
    Why shouldn't we judge a book by it's cover? It's got the author, title, and a summary of what the book's about.
    • (Score: 1, Informative) by Anonymous Coward on Friday August 16 2019, @03:58PM (1 child)

      by Anonymous Coward on Friday August 16 2019, @03:58PM (#881142)

      ennui

      Did you mean innuendo?

      • (Score: 2) by Snotnose on Saturday August 17 2019, @12:45AM

        by Snotnose (1623) on Saturday August 17 2019, @12:45AM (#881371)

        Yeah, last time I try to show off my big vocabulary. Until the next time I post, then all past goofs are forgotten :)

        --
        Why shouldn't we judge a book by it's cover? It's got the author, title, and a summary of what the book's about.
  • (Score: 3, Insightful) by Anonymous Coward on Friday August 16 2019, @05:30AM (2 children)

    by Anonymous Coward on Friday August 16 2019, @05:30AM (#880904)

    Just wait until your CFO gets arrested in Canada on an extradition warrant from China.

    • (Score: 0) by Anonymous Coward on Friday August 16 2019, @06:00AM (1 child)

      by Anonymous Coward on Friday August 16 2019, @06:00AM (#880914)

      It's just globalization, say no to borders!

      • (Score: 1, Touché) by Anonymous Coward on Friday August 16 2019, @06:07AM

        by Anonymous Coward on Friday August 16 2019, @06:07AM (#880916)

        Millions of economic refugees from Central America are signing up.

  • (Score: 0) by Anonymous Coward on Friday August 16 2019, @08:19AM (2 children)

    by Anonymous Coward on Friday August 16 2019, @08:19AM (#880950)

    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)

      by Anonymous Coward on Friday August 16 2019, @03:13PM (#881121)

      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

        by HiThere (866) Subscriber Badge on Friday August 16 2019, @05:54PM (#881200) Journal

        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.
  • (Score: 0) by Anonymous Coward on Friday August 16 2019, @01:42PM

    by Anonymous Coward on Friday August 16 2019, @01:42PM (#881047)

    And what did you expected? Bullies may eventually get real beating, not just uninvitation.

  • (Score: 2, Interesting) by Anonymous Coward on Friday August 16 2019, @04:28PM (1 child)

    by Anonymous Coward on Friday August 16 2019, @04:28PM (#881155)

    After their licensing changes and attempts to prevent sale of used gear I'll never buy or recommend them again. There was a time when they made sense and I suppose the big enterprise shops can justify the expense/abuse but that doesn't work for the under-$25M SMBs. Further, Cisco really isn't that far ahead of their competitors and it has become reasonable to recommend alternatives with confidence.

    Related: https://www.ifixit.com/News/cisco-is-making-it-more-difficult-to-use-pre-owned-hardware [ifixit.com]

    • (Score: 2) by etherscythe on Monday August 19 2019, @02:27PM

      by etherscythe (937) on Monday August 19 2019, @02:27PM (#882130) Journal

      Well, now, this very well may affect my choice of career track going forward. Thank you for bringing this to my attention.

      --
      "Fake News: anything reported outside of my own personally chosen echo chamber"
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