There has been a modest pickup in spending but it's still pretty tough out there. It's definitely growth initiatives that are driving sales since the switch and router market is pretty tepid.
Cisco, Motorola and Nokia have the money, but not necessarily the need.
Revenue growth is likely to be stronger in the second half (of the fiscal year ending in July) than in the first half.
With the prospect of relatively slow top-line growth over the next two quarters, we believe the upside in the stock is limited.
There's still a lot of uncertainty. Cisco had a good quarter but that doesn't mean that there will be another one out there like this one.
On balance I think it was an okay quarter. It would be nice if they were doing better.
Everyone expects a pickup in enterprise spending in the last half of the year but we're not seeing it yet. This is still an environment where it is hard to have a high level of confidence forecasting a recovery.
That'll be an enormous opportunity for companies like Cisco to build those networks.
Copyright © 2024 Electric Goat Media. All Rights Reserved.