PREVIEW-Cisco results seen solid but bar set high

* Fiscal Q1 results due on Wednesday after the bell

* Wall Street sees rev down 15 pct y/y, up 2 pct q/q

* EPS excluding items seen at $0.31 vs year ago $0.42

* Focus on whether Cisco will raise Tandberg bid

By Ritsuko Ando

NEW YORK, Nov 2 (Reuters) - Cisco Systems Inc's (CSCO.O) quarterly results this week are expected to reflect some recovery in tech spending, but it may be hard to get investors to commit more money to a stock that is already up 40 percent this year.

Analysts will also focus on what's next in the company's aggressive acquisition strategy, and particularly whether it intends to raise its $3 billion bid for Tandberg (TAA.OL) after a group of the videoconferencing company's investors demanded a higher price. [ID:nLU639058]

Mergers and acquisitions have played a key part in Cisco's growth, helping it become the top vendor of routers, switches and other network equipment to businesses and phone companies.

Analysts said Wednesday's results are likely to show more customers beginning to invest in their networks after putting off large investment decisions during the recession, but they also said much of that has already been priced into the stock.

Citigroup analyst Richard Gardner expects the results to show improving demand, but added: "That said, given ramping expectations and Cisco's penchant for conservatism...fiscal first quarter results and guidance are unlikely to be a significant near-term catalyst."

Analysts on average expect fiscal first-quarter revenue of $8.74 billion, down 15 percent from a year earlier but up 2 percent from the previous quarter, according to Thomson Reuters I/B/E/S. They see second-quarter revenue at $8.96 billion.

Earnings are expected to be 31 cents a share excluding options expenses. A year ago, Cisco reported earnings excluding items of 42 cents.

While the U.S. economy grew at a faster-than-expected 3.5 percent in the third quarter, other recent economic indicators including housing and unemployment remain weak.

BMO Capital Markets analyst Tim Long was wary of expecting the results to trigger a significant rise in the shares.

"We believe Cisco would need to report revenue upside of about $200 million with at least 1 cent of EPS upside in the fiscal Q1 and Q2 in order not to disappoint investors," he said. Long has a $21 price target and "market perform" rating on the shares.

DEALMAKING NOT OVER