Mitch Wagner of Light Reading's "Carrier SDN/SDN Archictectures" news analysis blog reports that Cisco's quarterly earnings have once again suffered from weakness in its Carrier segment.
"Weak carrier business continues to drag down Cisco's revenue, but that sector is improving, and future growth will be driven by the cloud, the Internet of Everything, and other new technologies and markets," the company revealed in its fiscal third-quarter earnings call on May 28, as reported by Wagner.
The service provider market is an area where the company is having problems "both macro and Cisco specific," Cisco's CEO John Chambers said during the call. "Service provider orders were down 5%, showing improvement from the 12% decline in Q2 and 13% decline in Q1. Weakness in emerging markets also hurt the service provider market. Also, service provider video revenue declined 26%, and orders declined 11%."
"We are seeing some signs of stabilization in the SP business but believe it will take multiple quarters to return to growth," Chambers added.
Full blog: Cisco Earnings Suffer From Carrier Weakness (lightreading.com)
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