5.57k followers • 7 symbols Watchlist by The Motley Fool
The next wave of the Internet is already underway – here are seven companies poised to power this digital revolution.
Last week, you might have seen that Sierra Wireless, Inc. (TSE:SW) released its annual result to the market. The early...
Earnings reports from NVIDIA and Cisco, a stay order on the JEDI contract, Facebook's app to compete with Pinterest and other stories are covered in this daily.
If Washington thinks US tech companies are about to jump at the idea of building a new national champion in the 5G mobile communications business, it probably needs to think again. The idea was pitched last week by William Barr, attorney-general, as an antidote to what the White House has come to see as its Huawei problem: that allowing a Chinese-owned company to dominate the mobile communications infrastructure market will present an unacceptable national security risk. Among the most natural companies to lead such a push would be Cisco Systems, the leading maker of data networking gear.
(Bloomberg) -- The U.S. raised the stakes in its battle with Huawei Technologies Co., using a law historically associated with prosecuting mafia figures to claim the Chinese company engaged in decades of intellectual property theft.Huawei, the world’s largest maker of telecommunications equipment, and Chief Financial Officer Meng Wanzhou had already faced criminal charges. The fresh allegations, announced Thursday, up the ante by including racketeering conspiracy, increasing the potential punishment. They come as the global battle for supremacy in fifth-generation wireless technology, or 5G, is joined.Huawei broke the law “to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage,” the Justice Department said in a statement. The company even launched a bonus program to reward employees who got their hands on confidential information from competitors, prosecutors said.The new charges depict a company that won international standing by stealing trade secrets, evading U.S sanctions and lying to authorities. They are likely to increase tensions between Beijing and Washington, which has accused Huawei of spying for the Chinese government, even as Huawei won a brief reprieve from a proposed ban on buying parts.The indictment doesn’t name the businesses from which Huawei allegedly stole intellectual property, but details of the allegations match descriptions of companies including Cisco Systems Inc., Motorola Inc. and Cnex Labs Inc.“The indictment paints a damning portrait of an illegitimate organization that lacks any regard for the law,” Senator Richard Burr of North Carolina, the Republican chairman of the Intelligence Committee, and Senator Mark Warner of Virginia, the panel’s Democratic vice-chairman, said in an emailed statement. “Intellectual property theft, corporate sabotage and market manipulation are part of Huawei’s core ethos and reflected in every aspect of how it conducts business.”Huawei doesn’t “abide by Western business practices,” Rob Spalding, a Washington-based technology and security expert at the Hudson Institute who served on the National Security Council, said in an email. “Which is why many U.S. companies are no longer competitive in the global marketplace.”Read More: Why 5G Mobile Arrives With a Subplot of EspionageHuawei, in turn, has accused the U.S. of orchestrating a campaign to intimidate its employees and launching cyberattacks to infiltrate its internal network. China’s Ministry of Foreign Affairs has urged the U.S to “stop unreasonably targeting Huawei and other Chinese enterprises.”The new indictment “is part of the Justice Department’s attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement,” a representative of the company said Thursday. “These new charges are without merit and are based largely on recycled civil disputes” from the last 20 years “that have been previously settled, litigated and, in some cases, rejected by federal judges and juries.”Huawei was previously accused of violating U.S. sanctions against Iran and North Korea. Meng, the CFO, was charged with fraud last year, with the case rippling into Canada, where she is currently fighting extradition to the U.S. Meng’s lawyers have argued in court that their client did nothing wrong.The U.S. said Huawei stole trade secrets, including copyrighted works, source code and user manuals for internet routers, to “grow and operate” its business. The company swiped antenna and robot testing technology, prosecutors said.Then, they said, it doubled down.“When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets,” they said.Read More: U.S. Ramps Up Huawei Fight With Iran, Trade-Secret ChargesThe U.S. dates the thefts to 2002. But the government has also linked the 2016 alleged theft of a computer chip from a California tech company for Huawei with the latest charges.Bo Mao, a Xiamen University professor, was charged in September with stealing trade secrets. His lawyers said in a court filing Thursday that the prosecution is related to the Huawei case.In the new indictment, the government is wielding some prior allegations of wrongdoing, like Huawei’s alleged theft of a phone-testing robot developed by T-Mobile US Inc., to build a more muscular case. The U.S. alleged that a Huawei engineer secretly took photos of T-Mobile’s robot, Tappy, took measurements of parts and even stole a piece of it. When T-Mobile threatened to sue, the U.S. said, Huawei blamed “rogue actors” within the company.Intellectual property theft “explains a lot of Huawei’s success,” said Jim Lewis, of the Technology Policy Program at the Center for Strategic and International Studies in Washington. “Huawei is the poster child for China’s commercial spying.”The case is U.S. v. Huawei Technologies Co., 18-cr-457, U.S. District Court, Eastern District of New York (Brooklyn).Read MoreHuawei Pleads Not Guilty to Bank Fraud Charges in New YorkU.S. Accuses Huawei of Trade-Secret Theft, Defrauding BanksProsecutors Say Government Used FISA to Watch HuaweiU.S. Charges Chinese Professor Accused of Theft to Help Huawei(Updates with Bo Mao case)\--With assistance from Bob Van Voris and Natalie Obiko Pearson.To contact the reporters on this story: Patricia Hurtado in Federal Court in Manhattan at email@example.com;Alyza Sebenius in Washington at firstname.lastname@example.org;Todd Shields in Washington at email@example.comTo contact the editors responsible for this story: David Glovin at firstname.lastname@example.org, Joe Schneider, Peter BlumbergFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Sierra Wireless (SWIR) delivered earnings and revenue surprises of -33.33% and 2.89%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Lululemon is committing to provide its 20,000 employees mental health benefits. EVP Celeste Burgoyne made the announcement at the 2020 MAKERS Conference on Wednesday.
Cisco's (CSCO) second-quarter fiscal 2020 results reflect weakness in the service provider, enterprise and commercial end markets as well as sluggish customer spending.
The chief executive of Cisco Systems has ruled out the idea of taking control of telecoms equipment makers Nokia and Ericsson, dealing a blow to the Trump administration’s latest bid to counter the rise of Chinese equipment maker Huawei. Chuck Robbins, head of the US networking equipment maker, said that building the infrastructure for 5G mobile networks — a big part of the European groups’ operations — did not fit Cisco’s financial profile or strategy. in Nokia of Finland and Sweden’s Ericsson to help build a stronger competitor to Huawei, which is viewed by Washington as a national security threat.
Cisco is altogether too relaxed about its recent slowdown in sales. Chief executive Chuck Robbins says he feels “confident” and “really good”. Cisco, the biggest maker of routers, switches and other kit needed to connect computers, is facing problems that software companies are not.
(Bloomberg) -- Cisco Systems Inc. said revenue this quarter may decline more than analysts projected, indicating that corporations are still cautious about increasing spending on their computer networks.Sales in the third quarter, which ends in April, will drop as much as 3.5% from a year earlier, the San Jose, California-based company said Wednesday in a statement. Analysts on average expected revenue of $12.6 billion, in line with the midpoint of Cisco’s forecast range. Adjusted profit will be 79 cents to 81 cents a share. Analysts had projected 80 cents, according to data compiled by Bloomberg.Cisco is predicting a second consecutive quarterly revenue contraction, showing that its main business of selling expensive networking hardware is still struggling amid tepid spending by corporations and government agencies. While a push into software and services had eased the company’s reliance on hardware, such as switches and routers, that machinery still provides the biggest chunk of revenue. Cisco’s customers in certain markets and areas are putting off signing orders, Chief Executive Officer Chuck Robbins said.“It’s just lower close rates and taking longer to get closed,” he said in an interview. “That tells you it’s a pause and not a cliff.”Cisco shares declined about 4% extended trading. They had earlier closed at $49.93 in New York, leaving them up 4.3% in the last 12 months. That compares with a 23% gain in the S&P 500 Index.The company said net income in the fiscal second quarter rose to $2.88 billion, or 68 cents a share, from $2.82 billion, or 63 cents, a year earlier. Revenue fell 4% to $12 billion. Excluding certain items, Cisco posted profit of 77 cents a share. On average, analysts were predicting profit of 76 cents on sales of $11.98 billion.Cisco’s hardware business generated sales of $6.53 billion in the period ended Jan. 25, a decline of 8% from a year earlier. Applications, its software unit, also dropped 8% to $1.35 billion and security revenue expanded 9% to $748 million.In Europe, orders would have increased if not for the U.K., where companies and the government held off. Similarly, in Asia, China revenue dropped 30%, Robbins said. Without that drag, Asia as a region would have shown growth. In the U.S., Cisco’s largest and most profitable region, the company was hurt by slower server sales and the ongoing decline in orders from phone and internet service providers.Robbins expressed his confidence in a rebound once issues including Brexit, trade and the health crisis in China are resolved.“There’s a lot of sprouts out there that lead me to continue to be optimistic,” he said.Cisco, whose gear handles much of the world’s internet data traffic, has said that telecommunications service providers have pared spending on computer networks. Many are devoting the bulk of their budgets to purchases of radio equipment to build out coverage of new fifth generation, or 5G, cellular networks. Once those networks have been built out and are generating traffic, investment will shift to the kind of gear Cisco makes, for connecting the computers that handle the data-processing element of wireless services.(Updates with CEO comments in the fourth paragraph.)To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Alistair Barr at firstname.lastname@example.org, Andrew Pollack, Jillian WardFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Cisco (CSCO) delivered earnings and revenue surprises of 1.32% and 0.16%, respectively, for the quarter ended January 2020. Do the numbers hold clues to what lies ahead for the stock?
Cisco reported on Wednesday fiscal second-quarter results that topped consensus estimates, but offered a gloomy outlook on revenue. Cisco had reported EPS of $0.84 on revenue of $13.16 billion in the previous quarter. The company guided earnings in the range of 79 cents to 81 cents per share, with revenue expected to decline 1.5% to 3.5% in the fiscal third quarter year on year.