Feeds

Cisco outlook an investor Chambers of horrors

Q2 less of a shocker

Intelligent flash storage arrays

Cisco posted a decent 2008 fiscal second quarter, yet remains gloomy about its near-term sales forecast in the US and Europe.

Revenue increased 16.5 per cent to $9.8bn, compared with $8.4bn year-over-year.

Net income climbed 7.2 per cent to $2.1bn, compared with $1.9bn a year ago. Operating income increased to $2.4bn from $2.1bn a year ago.

The earnings matched average analyst estimates, which predicted revenue around $9.79bn. But investors seem more interested in the switching giant's forecast, used as a gauge of upcoming corporate spending.

CEO John Chambers told analysts today that due to "factors out of our control or influence" he expects revenue to grow by about 10 per cent next quarter — below the company's long-term expectations of 12-17 per cent growth.

Customers in US and Europe are currently "cautious," according to Chambers.

"As we enter the second half of the fiscal year, our innovation pipeline is in excellent shape, our balanced product momentum across core and advanced technologies continues to be solid, and execution against our long-term strategy remains unwavering," he said.

Three months ago, Chambers spooked the tech sector with liberal use of the word "lumpy" to forecast US corporate spending. Cisco clearly fears it's not out of the woods yet. But Chambers said he's optimistic about Cisco through a wide-angle lens.

This apparently didn't cheer investors very much. While shares remained flat at closing, Cisco's stock fell 7.5 per cent in after-hours trading. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Do you spend ages wasting time because of a bulging rack?
No more cloud-latency tea breaks for you, users! Get a load of THIS
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.