News and Trends
SHARE
Facebook X Pinterest WhatsApp

Cisco Quarter Margins Pressured by Price Competition

NEW YORK, Feb 9 (Reuters) – Network equipment maker Cisco Systems Inc’s (NASDAQ:CSCO) CEO John Chambers spooked investors for the third time in as many quarters, warning of dwindling public spending and weaker margins from tough competition. Cisco shares fell 10 percent after hours on Wednesday. Shares of peers such as Juniper Networks Inc (NYSE:JNPR), […]

Written By
thumbnail
Channel Insider Staff
Channel Insider Staff
Feb 10, 2011
Channel Insider content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

NEW YORK, Feb 9 (Reuters) – Network equipment maker Cisco
Systems Inc’s (NASDAQ:CSCO) CEO John Chambers spooked investors for
the third time in as many quarters, warning of dwindling public
spending and weaker margins from tough competition.

Cisco shares fell 10 percent after hours on Wednesday.
Shares of peers such as Juniper Networks Inc (NYSE:JNPR), F5
Networks Inc (NASDAQ:FFIV) and Riverbed Technology Inc (NASDAQ:RVBD) also
declined, but the recurring let-downs raised questions about
whether Cisco is still the industry bellwether it once was.

Chambers upset investors last August with a warning of
"unusual uncertainty," and followed up last quarter with a
weaker-than-expected outlook that he blamed on weak orders from
debt-burdened government agencies.

He offered no relief this quarter.

"Unfortunately, we believe that our concerns in the public
sector will continue to be challenging in the developed world
for the next several quarters," he said, adding that Cisco’s
government accounts in the United States, Europe and Japan had
all been hit in the fiscal second quarter.

"The challenges at state, local, and eventually federal
level in our opinion will worsen over the next several
quarters," he said of the U.S. market.

Chambers is one of Silicon Valley’s longest-serving
executives, and investors take his views on industry trends
seriously. He was one of the first tech executives to flag the
impact of the financial crisis on the sector in late 2007.

Investors have also looked to Cisco for signs of overall
technology spending due to the breadth of its customer base,
which ranges from small U.S. businesses to foreign
governments.

thumbnail
Channel Insider Staff

Recommended for you...

thumbnail
XenTegra CTO Sellers on AI, Security & More 2026 Opportunities
Running an MSP
XenTegra CTO Sellers on AI, Security & More 2026 Opportunities
Victoria Durgin
Dec 2, 2025
thumbnail
November Leadership Recap: ‘Tis the Season for New Appointments
Channel Analysis
November Leadership Recap: ‘Tis the Season for New Appointments
Jordan Smith
Dec 1, 2025
thumbnail
Nerdio Expands Capabilities in AVD & Microsoft Ecosystem
Infrastructure
Nerdio Expands Capabilities in AVD & Microsoft Ecosystem
Victoria Durgin
Nov 28, 2025
thumbnail
Microsoft Ignite Sees No Shortage of Channel Announcements
Channel Analysis
Microsoft Ignite Sees No Shortage of Channel Announcements
Jordan Smith
Nov 26, 2025
Channel Insider Logo

Channel Insider combines news and technology recommendations to keep channel partners, value-added resellers, IT solution providers, MSPs, and SaaS providers informed on the changing IT landscape. These resources provide product comparisons, in-depth analysis of vendors, and interviews with subject matter experts to provide vendors with critical information for their operations.

facebook
linkedin
youtube
rss
spotify
x

Company

About us Contact us Advertise with us

Categories

Channel Business Security AI Infrastructure Lists & Awards Resources

Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

Terms of Service Privacy Policy California - Do Not Sell My Information