Chambers: Cisco not abandoning set-tops
Despite the closing of its key set-top manufacturing facility in Mexico, Cisco (Nasdaq: CSCO) isn't abandoning the set-top business, CEO John Chambers said Wednesday.
John Chambers, CEO of Cisco: "In terms of set-top boxes, we are very much committed to this marketplace"
"In terms of set-top boxes, we are very much committed to this marketplace," Chambers told analysts while discussing Cisco's fiscal fourth-quarter earnings. He said revenue from its Scientific Atlanta group, which makes cable set-tops and headend gear, has increased by 11 percent in 2011, and that orders are up by about 10 percent.
But Chambers said he expects Cisco's cable business to evolve from selling traditional cable set-tops to IP-based boxes. He also touted Cisco's Videoscape business, which is focused on supplying pay TV providers with a cloud-based solution that can deliver video to subscribers on TVs, PCs and mobile devices.
"Receptivity, so far, has been very, very good in terms of that [Videoscape] direction," Chambers said.
Cisco reported $1.2 billion in net income for its fiscal fourth quarter on net sales of $11.2 billion.
- see Cisco's earnings release