Feeds

Cisco outlook an investor Chambers of horrors

Q2 less of a shocker

Securing Web Applications Made Simple and Scalable

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. ®

The Essential Guide to IT Transformation

More from The Register

next story
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
Intel teaches Oracle how to become the latest and greatest Xeon Whisperer
E7-8895 v2 chips are best of the bunch, and with firmware-unlocked speed control
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.