Cisco Systems, Inc. (CSCO)

EMG114 (98.23) Submitted: 5/08/08 7:22 PM : Start Price: $25.04 CSCO Score: 0.71

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Cisco Beats Forecasts but Remains Cautious
( Page 1 of 2 )

Cisco's CEO says the market is still challenging and he remains cautious, despite reporting financial results that exceeded expectations.

NEW YORK (Reuters) - Cisco Systems gave a cautious business outlook on Tuesday, although its quarterly results exceeded expectations as rising Internet traffic fueled demand for network equipment.

Chief Executive John Chambers, considered a trend reader for the overall U.S. technology industry, said conditions were still challenging and that a U.S. market recovery is not in sight.

"We're continuing to see our U.S. and some European customers remain cautious in their views about their own economies," he told analysts on a conference call.

His comments reined in Wall Street's optimism, and Cisco shares rose just 1 percent in extended trading after gaining as much as 3 percent immediately after the company announced its fiscal third-quarter results.

Cisco, the largest U.S. makers of routers and switches that direct Web traffic, said earnings before items for the three months ended April 26 rose to $2.3 billion, or 38 cents, from $2.1 billion, or 34 cents a share, in the year-ago period. That beat the average analyst forecast of 36 cents according to Reuters Estimates.

"Usually Cisco beats by a penny. They beat by two pennies. That was better than the norm," said Robert W. Baird & Co analyst Kenneth Muth.

Its quarterly net profit fell to 29 cents a share from 30 cents, due mainly to an acquisition-related charge of 4 cents per share.

Revenue rose 10.4 percent to $9.8 billion, compared to its previous forecast 10 percent growth.

http://www.eweek.com/c/a/Infrastructure/Cisco-Beats-Forecats...

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