Cisco Gets Bold With Guidance
That's a notch up from the 10 to 15 percent that CEO John Chambers has preached for the past couple of years.
Cisco's earnings calls have been repeatedly upbeat, but each time, Chambers stuck stubbornly to that range of 10 to 15 percent growth. But in closing out fiscal 2007 with today's earnings report, executives decided it was time to ratchet up the numbers.
"After careful consideration, and watching these trends over three years, we have decided to increase our expectations," Chambers said on today's conference call with analysts.
Key to the increase is the potential Cisco sees in helping businesses adopt business models that take advantage of collaborative tools and Web 2.0 technology. That's been a mantra of Chambers's for more than a year, exemplified by new products like the TelePresence videoconferencing system. (See Cisco Dials Up Videoconferencing.)
The higher estimates start now, with Cisco projecting revenues of $9.45 billion to $9.55 billion for its first fiscal quarter -- or, 16 percent revenue growth when compared with a year ago.
For its fourth quarter, ended July 28, Cisco reported net income of $1.9 billion, or 31 cents per share, on revenues of $9.4 billion, compared with net income of $1.9 billion, or 30 cents per share, on revenues of $8.9 billion the previous quarter.
In its fourth quarter a year ago, Cisco reported net income of $1.5 billion, or 25 cents per share, on revenues of $8 billion.
Non-GAAP earnings of 36 cents per share beat Wall Street estimates by a penny, according to Reuters Research .
On a side note, Cisco says this is the final quarter where it will spell out the revenues of Scientific Atlanta . For all of fiscal 2007, Scientific Atlanta sales were $2.8 billion. That's compared with $988 million in fiscal 2006, but remember, Scientific Atlanta was acquired in February, halfway through the fiscal year.
Cisco stock was up 52 cents (1.8%) at $30.21 in early after-hours trading.
— Craig Matsumoto, West Coast Editor, Light Reading