IPoDWDM involves putting a tunable DWDM interface on a router. … and Alcatel-Lucent (NYSE: ALU) and Juniper Networks Inc. (NYSE: JNPR) now support it as …
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There’s really not a lot to like about Cisco’s (Nasdaq: CSCO) Q4 earnings statement and its cautious revenue forecast. Cisco’s fiscal Q4 ended July 31 results of $10.8 billion, while 27 percent above last year’s results, slightly missed analyst’s expectations of $10.9 billion.
But what’s troubling financial analysts and Wall Street even more is Cisco CEO John Chambers’ cautious outlook. Analysts and investors alike were expecting that Cisco would report an uptick in sales as service provider’s upgrade their respective networks to keep up with growing Internet-based applications.
“We are seeing a large number of mixed signals in both the market and from our customers’ expectations, and we think the words ‘unusual uncertainty’ are an accurate description of what is occurring,” Chambers told analysts on Wednesday.
Not surprisingly, investors did not like this outlook and punished Cisco by sending its share price down 8 percent in after-hours trading. The router giant forecast that revenue would increase 18-20 percent over 2009, which fell short of average analyst estimates of 21 percent to $10.95 billion.
Chambers attributed the cautious outlook to a dip in sales in late June and European debt issues, but added that business started to pick up at the end of fiscal Q4. Unfortunately, the sales uptick did not happen quickly enough. “He certainly sent investors mixed signals. But overall, it looks like orders ramped up towards the end of the quarter but weren’t strong enough to give the guidance that people were looking for,” said Bill Choi, analyst at Jefferies & Co.
One potential bright spot that could contribute to further growth was that Cisco was picked as one of AT&T’s three IP/MPLS, Ethernet and Evolved Packet Core equipment domain suppliers alongside rivals Alcatel-Lucent (NYSE: ALU) and Juniper (NYSE: JNPR). Although making it onto AT&T’s domain supplier list does not necessarily mean instant sales, it does give Cisco a chance to better compete for future IP-based voice, video and data traffic upgrades.
For more:
- see the earnings release here
- Reuters has this article
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The worldwide service provider router market is entering a growth cycle that will see revenue increase by more than 60% over the next five years, according to Dell’Oro Group. After a sharp decline in 2009 driven by the global recession, the router market is experiencing strong demand as service providers increase the capacity of networks to accommodate growth of Internet traffic, the firm states. &…
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By now, all of our readers are sure to know all about AT&Ts supply chain streamlining and their break from the two vendor rule in the IP core. Juniper, Cisco and Alcatel-Lucent will all provide equipment for the carriers wireline and wireless IP core.
Rounding out the coverage of this announcement from AT&T are a couple [...]
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AT&T (NYSE: T), after days of speculation, confirmed late last week that Alcatel-Lucent (NYSE: ALU), Cisco (Nasdaq: CSCO) and Juniper (NYSE: JNPR) have a seat at the their IP-based network table as “domain suppliers.” News of Juniper being awarded a spot on AT&T’s domain supplier list broke late last Wednesday.
While the domain supplier status gives these vendors a fighting chance for new business with the carrier, none of these vendors are strangers to AT&T’s network. The new contracts, which span its equipment needs for both wireline-based triple play services and wireless backhaul, include IP, MPLS, Ethernet and Evolved Packet Core (EPC) equipment.
Gaining “domain supplier” status for wireless backhaul is obviously a big win for Alcatel-Lucent, for one, which previously was named as one its LTE mobile broadband technology and as one of two suppliers for its Radio Access Domain.
But just because these vendors have been named domain suppliers, AT&T maintains “there is no guarantee of any business award.”
The announcement of these three vendors as AT&T’s new domain suppliers is obviously another blow to Tellabs (Nasdaq: TLAB), a major supplier of wireless backhaul equipment to AT&T. Even though Tellabs reported a solid Q2 earnings statement, company shares were down on fears of losing a piece of its wireless backhaul business to Alcatel-Lucent and Cisco.
J.P. Morgan analyst Rod Hall said in a Reuters article that the impact of AT&T signing deals with Alcatel-Lucent, Cisco and Juniper could be a big blow to Tellabs “considering that around 40 percent of Tellabs’ broadband data sales come from AT&T’s wireless backhaul network.”
For more:
- Reuters has this article
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Juniper Q2: Revenue up, but Q3 forecast disappoints analysts
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As expected, AT&T this week named Cisco among its three suppliers for the carrier’s IP/MPLS network “domain.” The other two are Juniper and Alcatel-Lucent. Read more
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The choice of these three vendors makes sense. It gives AT&T plenty of options for its IP/MPLS router and Carrier Ethernet deployments.See all stories on this topic »
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Juniper Networks got back the number two position from Alcatel-Lucent which has … It has tables that cover Service Provider and Enterprise Router income, …
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New data on the state of the Ethernet-switching market surfaced yesterday and today.
First, Dell’Oro Group reported that the Ethernet-switching market grew sequentially at a 20-percent clip in the fourth quarter of 2009. As a result, Cisco, HP, and Juniper were said to have added $600 million in incremental revenue.
Said Alan Weckel, [...]
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… carrier and data center networks, Infonetics Research, said: "The top two vendors in the service provider router space, Cisco and Juniper, together went …
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Strong sales of IP edge routers helped drive worldwide revenue of routers and switches 17 percent in Q4 09. However compelling the fourth quarter was, it could not prevent a 12 percent decline to $11.1 billion for the year.
Not surprisingly, the ongoing decline in sales of multiservice ATM switches–a segment that has continued to decline for multiple quarters–was a major contributor to the downward trend.
In 2009 there were various positional shifts amongst the router/switch vendors. Cisco and Juniper may have continued to lead the market, but their market share dropped from 69 percent in 2008 to 59 percent in 2009, while Alcatel-Lucent and Huawei increased share. At the same time, Tellabs’s focus on the wireless sector enabled it to beat out Ericsson and be listed on the top five switching/routing vendor segments for the first time.
“All six of the top router vendors posted strong double-digit revenue increases in the fourth quarter, and we expect modest growth in the router segment to continue in 2010 as carriers carry out fixed-mobile convergence strategies for their router networks,” said Michael Howard, co-founder and principal analyst for carrier and data center networks at Infonetics Research in a release.
On the regional front, Asia Pacific stood out with 19 percent year-over-year growth in IP edge and core router revenue. Infonetics attributes growth in Asia-Pacific to the Chinese government’s aggressive telecom stimulus and reorganization of its top service providers.
For more:
- see the release here
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Let the core routing upgrade wars begin.
Entering the core routing networking ring is Juniper with a new capability that will enable customers to upgrade their existing T-Series routing gear to support 250 Gbps full duplex slot capacity. Leveraging a new in-house chipset design, Juniper says the upgrade will be able to deliver 4 Tbps of capacity in a half-rack system.
Available for purchase early next year, the proposed upgrade is likely the first attack on Cisco’s proposed MSC 120 core router that claims to support 120 Gbps per-slot. It would also surpass core networking platforms from both Alcatel-Lucent and Huawei–who have advertised support for 100 Gbps per-slot capacity.
For more:
- see the release here
- LightReading has this article
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It’s not easy being purple. At least that’s what Extreme Networks (known for its purple colored packaging) is probably feeling these days as the company, which is facing a tough battle to gain a stronger foothold in a market dominated by both Alcatel-Lucent, Cisco and Juniper, decided to not only ask its current CEO to step down, but also let 70 of its workers go.
This effort, as reported in FierceTelecom’s sister publication FierceOnlineVideo, will help “create an operating model that will position Extreme Networks for sustained profitability as quickly as possible.”
Mark Canepa, who has been with the company since 2006, will remain on board at Extreme to assist recently appointed CFO Bob Corey take on the Acting CEO role before Extreme finds a permanent replacement. From the looks of it, Canepa is not the only major executive to be shown the door. Extreme also did away with the chief counsel job that was held by Robert Shlossman, a position that appears will now be handled by current VP Diane Honda.
Although Extreme has not officially reported its current earnings, the company projected they would fall below the $14.4 million of Wall Street expectations.
For more:
- see the FierceOnlineVideo article
- Network World has this article
- see the release
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… Juniper and Cisco are all based on a similar approach, through which a 100 GbE services card will plug into a core router to begin delivering 100 GbE …
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