Cisco to fire another 1,100 after sixth straight revenue fall

Trumpian chaos and router collapse clip Switchzilla's wings, again


Administrative chaos in America has put a dent in Cisco's financials, and the company has announced its intention to cut another 1,100 jobs.

Its third-quarter earnings, announced today, Switchzilla reported a one per cent decline in revenue year-on-year to US$11.9 billion (its sixth consecutive quarter of decline), and predicted that Q4 will be even worse, slipping between four and six per cent.

Net income was $2.5 billion, and earnings per share at 50 cents was well below Wall Street's hoped-for 58 cents, leading to a share price drop of more than eight per cent after hours.

In its major product segments, only switching (up 2 per cent to $3.489 billion), wireless (up 13 per cent to $703 million) and security (up 9 per cent to $527 million) survived the bloodbath.

None of these, however, were enough to offset losses in routing (down 2 per cent to $2.032 billion), collaboration (down 4 per cent to $1.022 billion), or data centre (off 5 per cent to $767 million).

Why the slide? CEO Chuck Robbins offered slowing US federal government spending as one reason and added that Cisco has no idea what's coming for the next quarter.

Robbins wasn't so blunt as to put it that way, of course: he complained of a “lack of budget visibility” contributed about one per cent of the decline forecast for Q4.

Hence the extra job cuts, even though the company has shaved more than three per cent off its operating expenses year-on-year.

Robbins forecast “strong momentum” in the company's shift to selling software subscriptions, but that shift is a difficult one for a company whose long history is selling the big iron of network connectivity.

If America's four per cent slip was bad, but EMEA was worse, shedding six per cent, while the Asia-Pac grew a couple of points. ®

Similar topics

Broader topics

Narrower topics


Other stories you might like

  • 381,000-plus Kubernetes API servers 'exposed to internet'
    Firewall isn't a made-up word from the Hackers movie, people

    A large number of servers running the Kubernetes API have been left exposed to the internet, which is not great: they're potentially vulnerable to abuse.

    Nonprofit security organization The Shadowserver Foundation recently scanned 454,729 systems hosting the popular open-source platform for managing and orchestrating containers, finding that more than 381,645 – or about 84 percent – are accessible via the internet to varying degrees thus providing a cracked door into a corporate network.

    "While this does not mean that these instances are fully open or vulnerable to an attack, it is likely that this level of access was not intended and these instances are an unnecessarily exposed attack surface," Shadowserver's team stressed in a write-up. "They also allow for information leakage on version and build."

    Continue reading
  • A peek into Gigabyte's GPU Arm for AI, HPC shops
    High-performance platform choices are going beyond the ubiquitous x86 standard

    Arm-based servers continue to gain momentum with Gigabyte Technology introducing a system based on Ampere's Altra processors paired with Nvidia A100 GPUs, aimed at demanding workloads such as AI training and high-performance compute (HPC) applications.

    The G492-PD0 runs either an Ampere Altra or Altra Max processor, the latter delivering 128 64-bit cores that are compatible with the Armv8.2 architecture.

    It supports 16 DDR4 DIMM slots, which would be enough space for up to 4TB of memory if all slots were filled with 256GB memory modules. The chassis also has space for no fewer than eight Nvidia A100 GPUs, which would make for a costly but very powerful system for those workloads that benefit from GPU acceleration.

    Continue reading
  • GitLab version 15 goes big on visibility and observability
    GitOps fans can take a spin on the free tier for pull-based deployment

    One-stop DevOps shop GitLab has announced version 15 of its platform, hot on the heels of pull-based GitOps turning up on the platform's free tier.

    Version 15.0 marks the arrival of GitLab's next major iteration and attention this time around has turned to visibility and observability – hardly surprising considering the acquisition of OpsTrace as 2021 drew to a close, as well as workflow automation, security and compliance.

    GitLab puts out monthly releases –  hitting 15.1 on June 22 –  and we spoke to the company's senior director of Product, Kenny Johnston, at the recent Kubecon EU event, about what will be added to version 15 as time goes by. During a chat with the company's senior director of Product, Kenny Johnston, at the recent Kubecon EU event, The Register was told that this was more where dollars were being invested into the product.

    Continue reading

Biting the hand that feeds IT © 1998–2022