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Tuesday, 7 February 2012 - Cisco seen reporting solid second quarter |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Davos 2012 Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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It’s time for Cisco to cough up shareholder cash Related Topics Tech » Media » Mon Feb 6, 2012 6:21pm EST (Reuters) - A year after network equipment maker Cisco Systems Inc unnerved investors with yet another weak quarterly outlook the company looks set to report a stable quarter buoyed in part by improving enterprise demand in the United States. Analysts on average expect Cisco to post earnings of 43 cents a share excluding items, up 16.2 percent, in the quarter that runs until end-January, on a revenue increase of almost 8 percent to $11.23 billion, according to Thomson Reuters I/B/E/S. For the current quarter analysts estimate earnings of 45 cents a share on revenue of $11.48 billion. Cisco is due to report its second quarter results after the bell on Wednesday, February 8. "We believe improving demand in the U.S. is driving a recovery in Cisco's business with solid growth across U.S. enterprise and commercial offsetting weakness in Europe and parts of Asia such as India," Natarajan Subrahmanyan, analyst at The Juda Group, wrote in a note. He added that "Cisco will outgrow its peers over the long-term, given enterprise networking is outgrowing overall IT spending." Investors have been trying to gauge what IT budgets will look like in 2012, with mixed messages from companies in the past two months, and will be keen to hear Cisco's take on the macroeconomic outlook. Some of Cisco's smaller rivals such as Juniper Networks, Tellabs and Acme Paket had warned of weak capex spending while F5Network said it sees a boost in enterprise demand, thanks to a boom in data center consolidation. Cisco, which is active in data centers as well, appeared to have also seen solid enterprise demand that "tempered downbeat carrier capex," Barclays said. According to Morgan Stanley analyst Ehud Gelblum, Cisco had also benefited from revenue from large routing contracts in China. In addition, Subrahmanyan said Cisco had been aggressive in pricing in the routing market, possibly resulting in some moderate gains in market share. Routers and switches, which direct Internet traffic, are core to Cisco's business but the company has also focused on data centers, enabling and providing cloud computing technology and video platforms. "We expect Cisco to report relatively in-line results and guidance, causing it to remain the safe haven it has become since late last summer," Gelblum said, but cautioned that some issues remained. While he expected Cisco to gradually lose share in the fixed line switching market where both Juniper and Hewlett-Packard Co remained aggressive, he anticipated that "Cisco can lose share gracefully and not miss numbers." Cisco would likely lose some market share to Juniper in the data center market as well, Gelblum said. (Reporting By Nicola Leske; Editing by Richard Chang) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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