Forum Views ()
Forum Replies ()
Read more with google mobile :
Cisco investors hope for stability and stronger orders
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Cisco investors hope for stability and stronger orders
Reuters - Thursday, February 10
Send
IM Story
Print
By Ritsuko Ando
NEW YORK - After spooking the market for two quarters with cautious forecasts, Cisco Systems Inc must do more than meet or modestly beat analysts' forecasts to win back investor confidence.
Investors want Chief Executive John Chambers to show the network equipment maker is gaining stability, and fighting off rivals like Hewlett-Packard Co while winning orders for routers and switches despite budget cuts among public sector clients.
Analysts and investors told Reuters they realize achieving all of that may be difficult. However, most were cautious about the quarterly report, due after the market closes on Wednesday, given a fragile recovery in both the U.S. and European economies.
Yet options players traded heavily in Cisco shares this week, showing some were betting the report would lift shares. Some analysts said good news could come in the form of a high dividend, since Chambers has promised a dividend in fiscal 2011, which ends in July, of around 1 to 2 percent.
After closing down 0.2 percent at $21.99 on Tuesday, Cisco shares are still down 10 percent from November 10 when it announced a weak outlook and stoked fears it may be losing market share to competitors like HP and Juniper Networks Inc.
Cisco is one of the technology sector's bellwethers because its customers are broad-based, ranging from small businesses to foreign governments. It will report results for the quarter ending in January rather than December like most of its peers, making the numbers a more current indicator of technology spending.
Chambers, one of Silicon Valley's longest-serving executives, is considered a good reader of industry trends. He was one of the first tech executives to flag the impact of the financial meltdown on the sector in late 2007.
He is credited for leading the company's rapid growth through aggressive sales strategies and acquisitions. Since he became CEO in 1995, Cisco has grown from a company with $1.2 billion in annual revenue to around $40 billion.
However, recently disappointing quarterly announcements have raised concerns that while Cisco remains the top manufacturer of routers and switches, its growth may be slowing.
In addition to longtime industry rivals like Juniper and Alcatel-Lucent SA, Cisco faces new ones such as China's Huawei Technologies Co Ltd and HP.
Cisco and HP were former resale partners, but turned rivals after Cisco in 2009 unveiled plans to enter HP's territory of data center servers. HP in turn challenged Cisco by buying network equipment maker 3Com for around $3 billion.
Analysts say the increasing competition could be hurting Cisco's gross margins.
"Cisco is in somewhat of a defensive position in certain product lines and we've observed some pricing action," said RBC Capital Markets analyst Mark Sue.
Analysts on average expect fiscal second-quarter revenue of around $10.23 billion, up 4 percent year-over-year but down 5 percent sequentially, according to Thomson Reuters I/B/E/S. They forecast quarterly earnings, excluding special items, of 35 cents per share.
They also foresaw third-quarter revenue rising 5 percent from a year earlier to $10.85 billion.
Recommend
Send
IM Story
Print
Related Articles
HP hits tablet market with TouchPad AFP - 28 minutes ago
US-TECH Summary Reuters - 30 minutes ago
HP to pit "TouchPad" against Apple's iPad this summer Reuters - 30 minutes ago
Mobile sales up 32 percent last year: Gartner AFP - 1 hour 4 minutes ago
Time Warner Cable slapped for "fiber optic" claims Reuters - 1 hour 54 minutes ago
News Search
Top Stories
Fed's Bernanke tackles congressional critics
Images show why ancient snakes were out on a limb
Nokia 'on a burning platform,' CEO warns in memo
Egypt protests mount as US presses Mubarak
London, Toronto stock exchanges unveil merger
More Top Stories »
ADVERTISEMENT
Most Popular
Most Viewed
US golfer Woods finds old habits hard to shake
Russia loses military satellite: reports
US auto sales jump 17 percent in January
Dow closes over 12,000 for first time since June 2008
Egypt's Mubarak to step down at September election
More Most Viewed »
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Weekend Edition
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo!
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Entertainment
Photos
Yahoo! News Network
Copyright © 2011 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Thursday, 10 February 2011 Egypt protests mount despite regime threats
Fed's Bernanke tackles congressional critics
US-TECH Summary
Caucasus family suspected in Russia airport attack
Magistrates seek immediate trial for Berlusconi
Egypt counts cost of turmoil, protesters undaunted
Nokia drops new Meego phone, bemoans plight
Images show why ancient snakes were out on a limb
Mother of missing twins makes Italian TV appeal
Nokia 'on a burning platform,' CEO warns in memo
Tiny IT titan Estonia to switch to e-billing
Sarkozy tells cabinet to holiday in France
British envoy to Iran to take over NATO Kabul role
|
Egypt protests mount as US presses Mubarak
Cisco investors hope for stability and stronger orders
South Sudan minister shot dead in capital
Niger opposition presidential rival wins key alliance
|
Apple begins production of new iPad: report
US says customs officer killed in Afghanistan
Vatican bans confession by iPhone
Jordan king swears in new government after protests
|
Iraqi al Qaeda calls for prison breaks in Egypt
Syria renews direct access to Facebook, YouTube
Taylor snubs war crimes trial for second day
|
Nokia 'on a burning platform,' CEO warns
2 NATO service members killed in Afghanistan
Microsoft names Nadella server unit head
NATO picks new civilian rep for Afghanistan
Vivendi, Vodafone talks underway on SFR stake
Russia to boost defences on Kuril islands: Medvedev
US-TECH Summary
Taiwan detains general in China spy case
Nokia drops new Meego phone, bemoans plight
Cambodia, Thailand to face UN over border dispute
Nokia 'on a burning platform,' CEO warns
Inter-Korean talks collapse after North's walkout
Pirates seize laden supertanker off Oman
Indonesian palm oil giant vows to save forests
Afghan government expands reach but gains fragile
US-ENTERTAINMENT Summary
France offers maps to resolve Thai-Cambodia spat
Indonesian president denounces religious violence
Ricky Martin, Kristin Chenoweth honored by GLAAD
Parents face trial for India schoolgirl murder
AMD executives leave in wake of CEO departure
|
'Mad Men' creator spills success secrets in Paris
Indian property magnate held in telecoms probe
Record number of tourists to Germany
Cisco investors hope for stability and stronger orders
|
Madrid shopkeers recruit graffiti artists
Nissan profits surge, annual forecast rises
Meryl Streep takes on Thatcher role
Microsoft names Nadella server unit head
|
Time Warner Cable slapped for fiber optic claims
|
Northeast Asia dominates patent filing growth
|
US Fed chief hits Chinese rate hike, calls for yuan rise
Japan, Uzbek leaders welcome uranium deal
China to spur rice output as drought shrivels wheat
Indonesian palm oil giant vows to save forests
Pakistani stocks end down, volume at 10-mth low
More than 80% of N. Koreans 'rely on market economy'
Charlie Sheen's image goes up among many fans: poll
|
Ricky Martin, Kristin Chenoweth honored by GLAAD
|
Four killed in Egypt desert clash with police
Mother of missing twins makes Italian TV appeal
Activision Blizzard ends 'Guitar Hero' gig
South Sudan minister shot dead in capital
FARC hostage release begins in Colombia
Alcatel-Lucent sets 5 percent margin target for 2011
Lindsay Lohan charged with stealing necklace
Egypt's government resists mounting pressure for change
|
HP hits tablet market with TouchPad
PetroChina to invest $5.4 billion in Canada gas
INQ Mobile unveils two phones for social networking
Teen suicide bomber kills 20 at Pakistan army centre
|
Activision pulls plug on Guitar Hero; shares down
India and Pakistan peace talks to resume: Indian sources
|
HP to pit "TouchPad" against Apple's iPad, Google
Korea talks hit stalemate as rivals trade blame
Indonesian cleric's trial puts focus on rising
|
Catholics cannot confess via iPhone: Vatican
Hussey 'shocked' by Cup omission
Thai villagers trickle home after Cambodia clashes
|
Mobile sales up 32 percent last year: Gartner
North Korea says South refusing real dialogue
Korea talks hit stalemate as rivals trade blame
|
Indonesian president denounces religious violence
Korea talks "collapse" in setback for nuclear dialogue
INQ Mobile unveils two phones for social networking
Spy arrest a warning to Taiwan on China ties
|
Australia PM introduces disaster tax to Parliament
Mobile sales up 32 percent last year: Gartner
Japan watches Russian military near disputed isles
|
US-TECH Summary
Secret video released of detained Chinese lawyer
Colombia's FARC rebels free politician
|
NKorea says no more military talks with SKorea
Special Report: In Saudi Arabia, a clamor for education
|
In Casablanca, only Jewish museum in Arab world
US 'Cuckoo's Nest' hospital lists forgotten souls
WAGS add sparkle to cricket World Cup showpiece
Persistent corruption fears haunt tennis
'True Grit' spurs Berlin film fest start
Can sex, shaving boycotts save Belgium?
Activision pulls plug on Guitar Hero music game
Indonesian cleric's trial puts focus on rising
Lindsay Lohan pleads not guilty to necklace theft
Bashir terrorism trial opens in Indonesia
Ashlee Simpson files for divorce from Pete Wentz
Facebook and Google size up takeover of Twitter: report
|
Cisco spooks Street again with weak outlook, margins
|
PetroChina to invest Can$5.4 billion in Canada gas
INQ Mobile unveils two phones for social networking
|
S.Korea eyes credit lines to troubled savings banks
Chinese hackers infiltrate five energy firms: study
|
Seoul shares down amid caution; autos slip
New Zealand guest nights dip in December
Activision pulls plug on Guitar Hero
|
Alcatel-Lucent sets 5 percent margin target for 2011
|
Lindsay Lohan pleads not guilty to necklace theft
|
Berlin film festival opens with True Grit
|
Jude Law, Sienna Miller break up -- again
|
Ashlee Simpson files for divorce from Pete Wentz
|
Activision pulls plug on Guitar Hero music game
|
Justin Bieber film a solid bid for credibility
|
Nicki Minaj finally hits No. 1 on U.S. album chart
|
Miley Cyrus sorry about salvia bong hit
|
WikiLeaks insider dishes dirt on Assange
Verizon iPhone hits store shelves, ends AT&T's lock
Special Report
Energy Agency warns of danger from high oil prices
Chinese hackers infiltrate five energy firms: study
Eight die in Russian warehouse fire
Suicide bomber kills Afghan district chief
Can sex, shaving boycotts save Belgium?
Obama lays out plan for wireless Internet expansion
Argentine police recover stolen French artwork
Afghan bomber kills northern district chief
Google worker 'willing to die' for Egypt revolt
Rolls-Royce plane engine failure costs £56 million
Opening for SKorean base in Afghanistan delayed
Pro-reform Saudi activists launch political party
|
WikiLeaks crippled by ex-associates, sources say
|
Saudi king in excellent shape, foreign minister says
|
U.S. intel chief: Iran keeping nuclear arms option open
|
Taiwan teen probed for throwing baby from window
India, Pakistan to resume peace talks
Traffic jams cost Jakarta $3b annually
27 security officials killed, 40 injured in Pakistan suicide blast
Choose a shoe that fits your foot
"You talkin' to me?" Cricket sledgers have their say
Pakistan test fires Hatf-VII (Babur) cruise missile
Indonesia to speed legal changes to disband violent groups
Verizon iPhone hits store shelves, ends AT&T's lock
|
India, Pakistan to resume dialogue
'Schoolboy' bomber kills 31 Pakistan army recruits
WikiLeaks crippled by ex-associates, sources say
|
Pakistani rupee rises, more gains likely; stocks fall
Obama lays out plan for wireless Internet expansion
|
Video of blind activist surfaces in China
Japan's Sapporo to take over soft drink maker
Sprint posts first subscriber gain since second quarter, 2007
|
China defends yuan policy after Bernanke swipe
Opera to roll out iPad browser
|
Pakistan's forex reserves fall to $17.31 bln
Market awaits bold strategy shift from Nokia's CEO
|
Cuba gets fiber-optic cable link to Venezuela
|
Mongolian coal selloff attracts foreign banks
China's lunar holiday retail sales surge
Asia markets mixed as Shanghai recovers
S.Korea to seek sukuk bill passage in Feb
Pakistan airline staff on strike, many flights cancelled
Banned Iranian director in spotlight in Berlin
|
Jude Law, Sienna Miller break up -- again
|
Nicki Minaj finally hits No. 1 on U.S. album chart
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights