Cisco and Nortel: A study in contrast

Network Architecture This newsletter is sponsored by D-Link D-Link Unified Switching Improves Network Efficiency As businesses scale, blending traditional wireless and wired networks become a challenge. D-Link's xStack 3200 series incorporate effortless wireless switching and advanced wired functionality for a TOTAL unified network solution. Discover how D-Link can help take your network to the next level. Download your copy of "Unified Wireless Switching" to learn more. Network World's Network Architecture Newsletter, 11/08/07 Cisco and Nortel: A study in contrast By Jeff Caruso Nortel released its earnings report this week, showing a return to profitability in the most recent quarter for the first time in five quarters. But then Cisco showed up and spoiled the party. Nortel's operating margin was the biggest since 2004. Its net income was $27 million, with earnings per share of a nickel. Compare that to the net loss of $63 million the company experienced last year. That was the good news. The bad news was that revenue was down 8% from the previous year, to $2.7 billion. The IDG News Service's Stephen Lawson notes that much of the revenue drop was due to the sale of Nortel's UMTS business, so if you take that out of the picture, the revenue drop is much less. Find out why WAN Optimization is Right for You Discover how you can realize a three to four month return on investment with WAN optimization tools in this informative Webcast. Learn how all WAN optimization products are not the same and how to find the right box for your organization. To find out more click here. Interestingly, Nortel saw nice growth from its enterprise business, which grew 18% from the previous year. It was the carrier side that saw a decline. The next day, Cisco released its results for the most recent quarter. Revenue up 17% from last year, to $9.6 billion. Net income up 37%, to $2.2 billion. Earnings per share at 35 cents. In contrast to Nortel's enterprise surge and carrier dip, Cisco talked about "balanced execution across the company." For Nortel's sake, one would hope that this quarter's earnings are a sign of the company turning things around. But with competitor Cisco posting numbers like that, it has to be daunting. Of course, Nortel's shares rose and Cisco's shares fell as the respective earnings news was released. Investors expected more from Cisco and less from Nortel. That's Wall Street for ya. Editor's note: Starting the week of Nov. 19, you will notice a number of enhancements to Network World newsletters that will provide you with more resources and more news links relevant to the newsletter's subject. Beginning 'Tues., Nov. 13, the Network Architecture Newsletter, written by Jeff Caruso, will be merged with the LAN News Alert and will be named the Network Architecture Alert. You'll get Jeff's analysis of the Network Architecture market, which you will be able to read in full at NetworkWorld.com, plus links to the day's network architecture news and other relevant resources. This Alert will be mailed on Tuesdays and Thursdays. We hope you will enjoy the enhancements and we thank you for reading Network World newsletters.   What do you think? Post a comment on this newsletter

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Contact the author: Jeff Caruso is site editor at Network World. Contact him. This newsletter is sponsored by D-Link D-Link Unified Switching Improves Network Efficiency As businesses scale, blending traditional wireless and wired networks become a challenge. D-Link's xStack 3200 series incorporate effortless wireless switching and advanced wired functionality for a TOTAL unified network solution. Discover how D-Link can help take your network to the next level. Download your copy of "Unified Wireless Switching" to learn more. ARCHIVE Archive of the Network Architecture Newsletter. BONUS FEATURE 90% of IT Managers are leaving their company at risk for a DNS ATTACK. Get the tools and resources you need to keep your DNS healthy and secure. Run a DNSreport on your domain today - 56 critical tests run in 8 seconds. Visit www.dnsreport.com to learn more. (apply coupon NWW2007NLA for a 25% membership discount) PRINT SUBSCRIPTIONS AVAILABLE You've got the technology snapshot of your choice delivered to your inbox each day. Extend your knowledge with a print subscription to the Network World newsweekly, Apply here today. International subscribers, click here. SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007