Cisco hampered by IBM parts shortage

Shipments of Cisco's Catalyst 6000 local area network switch are being delayed by an IBM parts shortage, the networking giant admitted this week.

Shipments of Cisco's Catalyst 6000 local area network switch are being delayed by an IBM parts shortage, the networking giant admitted this week.

Cisco is taking as long as 12 weeks to fulfil orders for its popular Catalyst 6000 switch, a product which accounts for about $5bn, or 17 per cent, of the company's total turnover.

Richard Bradley, channel and SME operating director at the company, admitted that Cisco has had difficulties with supply over the past few months. "Our fulfilment times will come down to two- or three-week lead times very shortly. We are through the woods now," he said.

According to a report by investment house UBS Warburg, the lengthy lead time is due to a lack of ASICs from IBM that have been allocated for the past few months. But UBS Warburg noted that the availability of the components has "greatly improved" over the past month.

"Our research suggests that there have been signs of some slowing of sales through distributors," the report stated. "This may be more alarming, as it may indicate a slowing in demand. It may also indicate a lack of availability of high-end products, like the Catalyst 6000 series, given certain component shortages."

Executives from Cisco have previously acknowledged that the firm has been squeezed by parts shortages in several areas and has had trouble predicting demand.

Last week, John Chambers, Cisco's chief executive, warned that the vendor was feeling the effects of the dragging US economy, and said that the company faces "challenging" times ahead.