Cisco walking away from low margin STBs

John ChambersCisco chairman and chief executive officer John Chambers says the technology provider is walking away from low margin set-top box contracts.

In an investor call following the company’s second quarter earnings, Chambers said that 20% of business growth had come from NDS, which is being integrated into its existing Videoscape business.

“If you look at service provider video, the Americas, Asia-Pacific, China, actually had good growth. Europe, we are walking away from very poor, low margin set-top box bids, they were down dramatically, and I mean dramatically, year-over-year in terms of numbers.”

Chambers said the company would transition, where it made sense and the customer was also buying an architecture through the NDS business then Cisco would proceed, but he warned that when it came to low margin business the company was not prepared to bid.

“The integration of NDS continues to go very well, driving results on both the top and bottom line. The recent announcement of the next generation Videoscape platform, integrating the assets acquired with NDS and market traction including major alliances have been very well received.”

Videoscape Unity was recently unveiled as the next stage of development for multiscreen services.