Wednesday, May 18, 2022

Cisco cuts revenue outlook to (1)% to (5.5)% decline

Citing solid demand and a $15 billion order backlog, Cisco reported $12.8 billion in revenue for its third quarter of fiscal 2022, flat year over year; GAAP EPS $0.73, up 7% year over year, and Non-GAAP EPS $0.87, up 5% year over year.  

The top-line revenue number missed earlier guidance of $13.34 billion.

  • Total revenue was flat at $12.8 billion, with product revenue up 3% and service revenue down 8%. 
  • Revenue by geographic segment was: Americas up 5%, EMEA down 6%, and APJC down 6%. 
  • Product revenue performance was led by growth in Secure, Agile Networks up 4%, Internet for the Future up 6%, End-to-End Security up 7%, and Optimized Application Experiences up 8%. Collaboration was down 7%.

Cisco also cited progress on business model transformation with total Annualized Recurring Revenue (ARR) at $22.4 billion in the third quarter of fiscal 2022, up 11% year over year.

However, Cisco trimmed its Q4 guidance to the following:  

  • Revenue: (1)% to (5.5)% decline year over year
  • Earnings per Share: GAAP: $0.60 to $0.70; Non-GAAP: $0.76 to $0.84

FY 2022 Guidance:

  • Revenue: 2% to 3% growth year over year
  • Earnings per Share: GAAP: $2.75 to $2.85; Non-GAAP: $3.29 to $3.37

"We continued to see solid demand for our technologies and our business transformation is progressing well," said Chuck Robbins, chair and CEO of Cisco. "While Covid lockdowns in China and the war in Ukraine impacted our revenue in the quarter, the fundamental drivers across our business are strong and we remain confident in the long term."

"We delivered healthy earnings despite unanticipated disruptions through strong pricing and disciplined spend management," said Scott Herren, CFO of Cisco. "Our product backlog is well over $15 billion and product ARR and RPO again grew double digits. The continued progress in our business model transformation reflects the success of our strategy and underpins our long-term confidence."

Ericsson announces reorganization

Ericsson announced a corporate restructuring aimed at capitalizing on the convergence of software and services and delivering growth in the core business. Arun Bansal, Jan Karlsson and Peter Laurin will leave the Executive Team.

A new Business Area Cloud Software and Services is introduced, combining Business Area Digital Services and Business Area Managed Services. Per Narvinger will head up the unit and will be a member of the Ericsson Executive Team.

A new Business Area Enterprise Wireless Solutions, comprising Cradlepoint and Dedicated Networks, is created to drive the growth plan for enterprise. George Mulhern is appointed head of the unit and will be a member of the Ericsson Executive Team.

To simplify and digitalize overall ways of working, a new Group Function Global Operations is introduced. Moti Gyamlani will head up the unit and will be a member of the Ericsson Executive Team.

Following the new group structure, Ericsson will have the following reporting segments:

  • Segment Networks (unchanged)
  • Segment Cloud Software and Services (corresponding to former Digital Services and Managed Services)
  • Segment Enterprise (Enterprise Wireless Solutions and Technologies & New Businesses). On completion of the acquisition, Vonage will form a separate Business Area included in this segment.
  • Segment Other (including media businesses and one-offs)

The new segment reporting structure will be applied from Q3 2022.

“After turning around the company, Ericsson is entering a new phase of growth. The changed group structure that we announce today represents exciting opportunities for our people, our customers and our business and will allow us to continue to grow our core mobile infrastructure business and capitalize on the fast-growing enterprise market. Within 2-3 years, we want to achieve our long-term goal of growing faster than the market and an EBITA margin (excluding restructuring costs) of 15-18% for the Group. I look forward to working together with the new Executive Team, and the whole Ericsson team, as we accelerate our work to execute on our strategy, strengthen our company culture and continue to grow the company with increased profitability”, states Börje Ekholm, Ericsson's CEO.

AT&T teams with Cradlepoint for Managed Wireless WAN

AT&T is working with Cradlepoint, now part of Ericsson, to launch AT&T Managed Wireless WAN – a plug-and-play solution that provides quick-to-deploy, secure and flexible wireless cellular connectivity to any number of fixed sites, all managed by AT&T network experts.

AT&T Business supplies customers with the Cradlepoint NetCloud service and wireless edge device that is deployed and managed end-to-end by AT&T network experts. It is delivered as a monthly service, avoiding upfront hardware and licensing purchases.

Cradlepoint wireless edge devices are 5G-enabled but will also support 4G connectivity.

The rate of change in enterprise networks continues to accelerate. Business are facing great amounts of stress to adapt to changing customer patterns, changing employee patterns, and all while managing security threats. Donna Johnson, SVP of Marketing at Cradlepoint, shares insights from ONUG Spring 2022.

Cradlepoint expands 5G enterprise portfolio

Cradlepoint, now a division of Ericsson, introduced its second-generation 5G product portfolio featuring low-band to millimeter-wave solutions. external adapters and integrated 5G routers. Some highlights:R1900 Ruggedized 5G Mobile Router: a built-for-5G mobile router optimized for in-vehicle networks.E3000 5G Enterprise SD-WAN Router:  5G-optimized with a choice of high-speed fiber and 2.5 Gbps Ethernet WAN ports. It has an expansion slot for...

AT&T ties in with Ericsson's Cradlepoint for 5G SD-WAN

AT&T and Cradlepoint, which is now a division of Ericsson, are expanding their joint 5G offerings for businesses.The new solutions combine clean-slate-designed Cradlepoint 5G wideband adapters and routers, and its NetCloud Service, with AT&T’s nationwide wireless broadband network, data plans, and an AT&T management option for Cradlepoint devices. Cradlepoint's  W-Series Wideband Adapters provide a cloud-managed 5G modem for...

AWS joins Q-NEXT Quantum Center

Amazon Web Services (AWS) has joined Q-NEXT, a quantum research center led by the U.S. Department of Energy's (DOE) Argonne National Laboratory that is developing the science and technology for controlling and distributing quantum information.

Q-NEXT's mission is to further quantum R&D and to create a quantum ecosystem. The group now comprises 13 companies, 10 universities and three DOE national laboratories.

"We are excited to join Q-NEXT so we can bring together quantum experts from AWS and other top academic institutions to collaborate on the research and development of new quantum technologies and build a national quantum community," said Simone Severini, director of quantum computing at AWS.

AWS expanded into quantum computing in 2019 with the launch of Amazon Braket. The service gives researchers access to different types of quantum hardware and circuit simulators for running and testing quantum applications.

In 2021, the company opened the AWS Center for Quantum Computing. Its goal is to accelerate the development of quantum computing hardware and applications based on superconducting qubits.

The company also created the Amazon Quantum Solutions Lab to help customers find applications of quantum computing inside their organizations and address customer problems that could be tackled through existing high-performance computing solutions. 

DISH to resell AT&T Internet services

AT&T and DISH have entered into a distribution agreement that will allow DISH to offer AT&T Internet services, including AT&T Fiber with Hyper-Gig speeds, to prospective, new and existing DISH customers.

“At AT&T, we’re constantly thinking of ways we can better serve and provide for our customers. Through this new arrangement with DISH, we’re able to do just that by seamlessly offering our super-fast broadband services to more customers across the nation,” said Jenifer Robertson, EVP and General Manager – Mass Markets, AT&T Communications. “This is another step towards our goal of becoming the best broadband provider in America.”

“DISH is always looking for ways to improve the overall customer experience,” said Amir Ahmed, executive vice president of DISH TV. “Adding AT&T Internet to our robust lineup of TV and home integration services enhances our ability to provide better overall service, technology and value to our customers.”

DC BLOX buys dark fiber assets from Light Source and Ascendent

DC BLOX, which operates data centers across the southeastern U.S.,  has acquired the southeastern fiber assets from Light Source Communications and Ascendant Capital Fiber, including a unique dark fiber network connecting South Carolina to Georgia that is currently in development.

DC BLOX recently unveiled plans for a new Cable Landing Station (CLS) in Myrtle Beach, South Carolina.  The  acquisition positions DC BLOX as a premier vertically integrated digital infrastructure, data center and connectivity provider in the Southeastern United States. 

Construction is already underway on the high-capacity, long-haul dark fiber route that will run from the Myrtle Beach CLS through Charleston, Augusta, and downtown Atlanta’s major connectivity centers, landing in Lithia Springs, GA. The CLS and the terrestrial dark fiber route are both planned to be completed in 2023. The nearly 500-mile route will carry high-capacity dark fiber as well as a duct bank for future cables and can also serve as a diverse geographic route from Ashburn, Virginia, to the Southeastern region.

“Pete and I are thrilled to join forces with DC BLOX, a company we have long admired that has been leading digital infrastructure enablement throughout the Southeast,” stated Debra Freitas, CEO of Light Source. “This new fiber route will serve hyperscale customers and communications providers who need high-capacity, economical access to Atlanta from cities and counties to the East all the way to the coast. It will also benefit underserved rural areas across South Carolina and Georgia that are working to build out regional broadband networks for their communities.”

DC BLOX builds Cable Landing Station in Myrtle Beach

DC BLOX unveiled plans for a new Cable Landing Station (CLS) in Myrtle Beach, South Carolina to anchor subsea cable systems connecting North America's Southeast region with other continents.DC BLOX’s planned Myrtle Beach CLS is designed to withstand a category 5 hurricane, is engineered to Uptime Institute’s Tier III standards, and will be SOC 2 Type II and NIST 800-171 compliant.“The Southeast is exploding with opportunity and investments in digital...

DC BLOX buys land for data center campus in North Carolina

DC BLOX has acquired land in High Point, North Carolina with plans to construct the first highly secure, Tier III data center in the Carolina Core / Piedmont Triad region which includes High Point, Greensboro, and Winston-Salem.DC BLOX designs, builds and operates highly secure and reliable Tier III-designed data centers in markets that have previously lacked such high-caliber facilities traditionally only offered in major markets. The carrier-neutral...

DC BLOX begins data center construction in South Carolina

 DC BLOX initiated construction of its Greenville-Spartanburg, South Carolina data center. The data center, designed to Uptime Institute’s Tier III standards, will be the first-of-its-kind multi-tenant data center in South Carolina. The facility will be capable of protecting Controlled Unclassified Information (CUI), providing enterprises and government entities throughout South Carolina access to a highly efficient, secure and interconnected...

Atherton Fiber builds open access in one of America's wealthiest neighborhoods

A new company called Atherton Fiber has launched in San Mateo County, California offering  1-Gigabit symmetrical broadband service for $65 per month (and 500 Mbps service for $55 per month). The company expects to roll out 2.5-Gigabit symmetrical service later this year.

For high-income homes and businesses that want the ultimate in broadband connectivity, Atherton Fiber will deliver 10 Gigabits of symmetrical fiber service for a $10-$15,000 installation charge plus a $300 monthly fee via its Personal Fiber License service.

Notably, Atherton Fiber is promising Open Access Community Networks, allowing other providers to access their fiber network so cities can deliver their own branded broadband services. 

Currently operating its network in Atherton and North Fair Oaks, the company plans to expand into Woodside, Menlo Park, Mountain View, Palo Alto, and other California cities over the coming year.

“Broadband connectivity has changed people's expectations about what ‘fast’ means—what was amazing a couple of years ago is now annoyingly slow,” said Gerry Lawlor, chief executive officer at Atherton Fiber.” Our mission is to deliver the fastest broadband possible with the best customer service, period.”

SpaceX completes its 3rd Starlink launch this week

On Wednesday, May 18, SpaceX launched 53 Starlink satellites from Launch Complex 39A (LC-39A) at Kennedy Space Center in Florida. It was the 48th Starlink mission.

This was the fifth flight for the Falcon 9 first stage booster supporting this mission, which previously launched Arabsat-6A, STP-2, COSMO-SkyMed Second Generation FM2, and now two Starlink missions. 

It was also SpaceX's third Starlink launch within a week.