Cisco Shrugs Off Nortel's Shift; CEO Eyeing Start-Ups

Jan. 13, 2005
In reporting first-quarter earnings that beat expectations by a penny a share, Cisco Systems Inc. shrugged off Y2K concerns and rival Nortel Networks Corp.'s announcement Nov. 9 of its router hardware fire sale and new routing software. Cisco said ...

In reporting first-quarter earnings that beat expectations by a penny a share, Cisco Systems Inc. shrugged off Y2K concerns and rival Nortel Networks Corp.'s announcement Nov. 9 of its router hardware fire sale and new routing software. Cisco said competition from start-ups is what it takes most seriously. Nortel had acknowledged that the announcement of its new routing software and price cuts on its hardware was timed to take the thunder out of Cisco's earnings announcement, but Cisco Executive Vice president Don Listwin cut the legs off of Nortel. "Nortel's price cuts signal its exit from the router business, and I for one am glad," Listwin said in an earnings conference call with analysts after the markets closed Nov. 9. Cisco President and Chief Executive John Chambers acknowledged that "we're watching Nortel closer than we used to," but said, "we expect the toughest competition from start-ups. Rapid flow of capital to start-ups is accelerating."

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!