Feb 13 Cisco, the network equipment
maker, reported quarterly results that topped Wall Street views
on Wednesday, and its chief executive said there were signs of
improvements in its business in Europe.
"We are seeing early signs of stabilization in government
spending and also in probably a little bit over two thirds of
Europe," John Chambers, the CEO, told analysts on a conference
call after results were announced.
"But I want to watch that for at least another quarter
before I get really excited about it," he added.
Chambers comments on economic development are generally
watched closely because Cisco is considered a sector bellwether
due to its global scale and diverse client base.
Cisco's shares lost 2.4 percent in after-hours trading to
For its fiscal second quarter that ended Jan. 26, Cisco
reported revenue rose 5 percent to $12.1 billion versus a year
ago. Analysts, on average, were expecting $12.06 billion, as
compiled by Thomson Reuters I/B/E/S.
Income, excluding items, rose 6.2 percent to $2.7 billion,
or 51 cents per share, 3 cents above analysts' average estimate
of 48 cents a share.
The company said it expects revenue in its fiscal third
quarter, which runs until the end of April, to grow 4 percent to
percent compared with a year ago.
It forecast earnings per share, excluding items, in a range
of 48-50 cents, in line with average analyst expectations of 49
With analysts expecting that Cisco would top their
forecasts, Shaw Wu, an analyst at Sterne Agee, said, "It's
pretty much going to boil down to guidance now."
"They did say they got a benefit from taxes," he said of the
second-quarter result. "When you (take) that out it's 50 cents.
That still beat by 2 cents."