5 Companies That Had A Rough Week

The Week Ending May 19

Topping this week's roundup of companies that had a rough week is Microsoft, which was in the global spotlight for the massive ransomware attack that hit more than 200,000 Microsoft users in more than 150 countries.

Also making the list this week were Cisco for its weaker-than-expected fiscal fourth quarter guidance; Huawei, which loses a lengthy court battle with T-Mobile; Bell Canada, which had nearly 2 million customer accounts hacked; and Vodafone, which reported a $6.9 billion loss for its fiscal year 2017.

Not everyone in the IT industry was having a rough go of it this week. For a rundown of companies that made smart decisions, executed savvy strategic moves – or just had good luck – check out this week's 5 Companies That Came To Win roundup.

WannaCry Attack Cripples Microsoft Users

Everybody this week was talking about the global ransomware attack WannaCry, from the Trump administration to solution providers around the country, that affected Microsoft users. Security experts said the cyberattack represented a new type of threat by combining a computer worm with ransomware.

Health-care systems and telecom companies were among the notable victims. Damages from WannaCry could reach $4 billion, according to cybersecurity analytics platform provider Cyence.

Microsoft President Brad Smith said in a blog post that the "stockpiling of vulnerabilities by governments" is a huge issue. "We have seen vulnerabilities stored by the CIA show up on WikiLeaks, and now this vulnerability stolen from the NSA has affected customers around the world. Repeatedly, exploits in the hands of governments have leaked into the public domain and caused widespread damage," said Smith.

Cisco Stock Tumbles After Weak Q4 Guidance

Although Cisco's third fiscal quarter earnings report was a mixed bag, its current fourth-quarter guidance was much lower than expected, with the company predicting revenue would be more than 6 percent lower than previously anticipated. In addition, the networking giant said it plans to cut 1,100 jobs in an expanded restructuring plan as part of last year's 5,500 layoffs.

CEO Chuck Robbins said the change was due to a sales decline in its service provider and public sector businesses. "The public sector business, particularly in the United States federal business … is a pretty significant stall right now with the lack of budget visibility," said Robbins.

Huawei To Pay $4.8M In Damages To T-Mobile

After a lengthy court battle initially filed by T-Mobile in 2014, Huawei was found guilty of industrial espionage in the U.S., with the court demanding that the Chinese-based telecom and networking giant pay $4.8 million in damages.

T-Mobile initially sued Huawei three years ago, alleging that the company stole IP secrets about its phone-testing robot, dubbed Tappy, that mimics human behavior. T-Mobile alleged Huawei employees spied on the robot and stole parts during a visit to one of T-Mobile's labs, costing the company millions of dollars.

Nearly 2M Bell Canada Customers Hacked

Canada's largest telecom company was hacked this week as attackers stole account details from 1.9 million customers. The hackers stole email addresses, names and phone numbers from 1,700 customers.

Bell Canada said there is no indication that any financial, password or other sensitive personal information was stolen. The Montreal-based telecom and media vendor serves around 21 million customers. The company is currently working with Canadian authorities to find the hackers.

Vodafone Reports $6.9B Loss

The London-based global telecommunications vendor reported this week a loss of $6.9 billion for its fiscal year 2017, which ended in March.

The loss was driven by taxation changes and a $3.7 billion impairment inside its India business division, which Vodafone is spinning off into a joint venture. Vodafone India reported a $4.5 billion operating loss for the year due to heavy competition from India-based Reliance Jio, according to the company. To better compete against Reliance Jio, Vodafone recently disclosed its plan to merge its India-based division with fellow India-based mobile network operator Idea Cellular.