Strong quarterly results from Cisco Systems (NASDAQ: CSCO) and Juniper Networks (NASDAQ: JNPR) suggest that the networking market is weathering the economic downturn well.
Cisco last night became the latest in the space to post better than expected results, coming on the heels of Juniper's strong results last month.
Cisco also said the current downturn may be shorter than feared, with the economy beginning to pick up early next year.
The networking giant's July quarter sales grew a better than expected 10 percent to $10.4 billion, and earnings of 40 cents a share were a penny better than analysts anticipated.
The critical U.S. enterprise market grew 13 percent, more than double the previous quarter's performance. Routing and advanced technologies sales were particularly strong, but Cisco said service provider spending remains mixed.
The company forecast revenue growth of 8 to 8.5 percent for the next two quarters, slightly lower than expected, but comments from CEO John Chambers that the downturn will likely be a "relatively short challenge going forward" cheered investors worried about a prolonged downturn.
Cisco also maintained its long-term growth projection of 12 to 17 percent.
Cisco shares rose 6 percent in midday trading today.
Article adapted from Internet News
Kamis, 07 Agustus 2008
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