IT Industry bellweather Cisco has done better than Wall Street expected as demand from government and enterprises for its network equipment held up.
According to Reuters, Wall Street analysts had expected that things would not go that well for Cisco because of economic uncertainty and the fact that governments were slashing budgets and big IT projects.
However, Chief Executive John Chambers said that Cisco’s large customers and governments were still buying and it predicted a seven to eight percent rise in fiscal second-quarter sales. This means that Cisco would collect up to $11.2 billion in revenue which is slightly ahead of the $11.14 billion expected.
Chambers warned that global uncertainty persists and it remains tough to predict market conditions. Cisco had managed to stay ahead by making more than a billion dollars worth of cuts of its own.
Chambers was particularly concerned about the economic developments in Europe and the global economy, public sector spending, India business, and the fallout from the flooding in Thailand.
He promised to make life difficult for rivals, in particular Huawei who he named as being a little too gentle with in the past.
But the figures do seem to indicate that Cisco looks to be on track while rivals like Juniper Networks forecast disappointing fourth-quarter results and Alcatel-Lucent scaled back its profitability goal for the year.
Wall Street had to admit that Chambers appears to have pulled Cisco’s nadgers out of the fire during a tricky economic period. While it was not exactly a stellar result no one was expecting that.
Revenue rose to $11.3 billion from $10.75 billion a year earlier, versus the average forecast of $11.03 billion.