Light Reading
It's not as though Wi-Fi is Cisco's entire business, but Aruba and Ruckus's recent stumbles aren't exactly good signs

Wi-Fi Signs Don't Bode Well for Cisco

Light Reading
News Analysis
Light Reading
5/8/2013
50%
50%

With surprisingly downbeat outlooks from enterprise Wi-Fi suppliers Aruba Networks Inc. and Ruckus Wireless Inc. in hand, investors are wondering what to expect when Cisco Systems Inc. reports earnings on May 15. While it accounts for only 4 percent of the company's revenues, according to analyst George Notter of Jefferies & Co. Inc., the Wireless business has been contributing disproportionately to Cisco's overall growth. Aruba said Tuesday morning that its third-quarter results will miss expectations in both revenues and earnings. In response, the stock fell 23 percent that day (although it was up $0.85, or 5 percent, at $17.87 in late Wednesday trading). Likewise, Ruckus reported disappointing first-quarter results late Monday while also warning that second-quarter revenues and earnings would come in below current expectations. Its stock dropped by 25 percent the next day. Notter and other analysts say the long-term prospects for enterprise wireless sales are as strong as ever. Wireless's penetration of the corporate market is still quite low -- just 20 percent, reckons Mark Sue of RBC Capital Markets -- so there is plenty of upside. But with federal spending taking a hit due to mandated budget cuts, aka the sequester, and with corporations still keeping a tight rein on spending in all areas of IT, Cisco could be reporting slower-than-expected growth, too. (See Cisco Could Be Hit by Weaker US Govt. Spending and Sequester Could Sock Verizon & AT&T.) "Investors are concerned with the broad-based nature of the declines with weakness highlighted in all the major theaters (Americas, EMEA, APAC)," writes RBC's Sue. The good news, Sue says, is that "wired port growth has already slowed considerably and is being replaced by wireless ports … a trend that we believe will continue." For several weeks, now, Cisco's earnings have been expected to come in at the low end of its forecast of earnings per share of $0.48 to $0.50. In mid-April, analyst Simon Leopold of Raymond James Financial Inc. pointed to weakened government sales as a major contributor to the firm's struggles. Aruba, whose gear lets companies manage their Wi-Fi and wired networks as one, told investors to expect revenues of $144 million to $147 million, well below its earlier guidance of as much as $161 million. Its outlook on earnings per share: just $0.11 or $0.12, versus the $0.20 it had spoken about before. Ruckus said it now expects second-quarter earnings per share of $0.03 to $0.04, versus the $0.04 Wall Street had been forecasting. The company's first-quarter results -- dampened, Ruckus said, by a weak Chinese market and uncertainty over certain service providers' deployments in the Americas -- included sales of $57.2 million and non-GAAP earnings per share of $0.03, in contrast to the Street's consensus estimates of $0.04 and $63.3 million. — John Verity, contributing editor, special to Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
1959 Newsreel: Make Phone Calls – From Cars!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/24/2014
Meet the Phantom Network for NFV
Ray Le Maistre, Editor-in-chief, 10/23/2014
Like Us on Facebook
Twitter Feed