UPDATED 12:37 EST / FEBRUARY 09 2011

NEWS

Cisco’s Market Showing Bullish Signals, Shares Up

Unlike its previous quarterly report and the hopes of investors and market analysts from Cisco, the company has shown some positive results in its latest quarter. Taking a constructive lesson from its previous results, Cisco managed to show bullish signals for its market and, as a result, its shares are edging about 0.6 percent higher, even in a flat market. This also boosted up the confidence of Cisco’s investors. Some other big companies and rivals that have seen the rise include Juniper Networks by 0.7% and Alcatel-Lucent gaining about 1%.

Having hopes from Chief Executive John Chambers, investors want the company to show increased stability and a good position in competition against its rivals like Hewlett-Packard. They also expect it to win big on routers and switches orders in spite of budget cuts in public sectors. On the other hand, they also realize that meeting all expectations is not so easy; it should be done to have a secure position in the market.

On Tuesday, Cisco’s shares closed down 0.2 percent at $21.99. Back in Nov. 2010 the shares were 10 percent up over current despite the fact that the company announced a weak outlook. But as the company experienced gains in this quarter, Chambers, CEO Cisco, has promised a dividend in fiscal 2011, which ends in July, of around 1 to 2 percent.

Csco’s gross margins have also fallen due to increasing competition. For example, it earned a rivalry with HP by entering its territory of data center servers.

“Cisco is in somewhat of a defensive position in certain product lines and we’ve observed some pricing action,” said RBC Capital Markets analyst Mark Sue.

But yes, we can anticipate this year to be a good one for Cisco as analysts expect fiscal second-quarter revenue of around $10.23 billion up 4 percent year-over-year with third-quarter revenue rising 5 percent from a year earlier to $10.85 billion. They are also looking to sales in order to maintain their hold on the market. It’s getting increasingly competitive with current technology and cloud offerings on an enterprise scale. In an interview with SiliconANGLE.tv, Cloud Computing Evangelist James Urquhart told more about the cloud offerings and infrastructure. Read our full coverage here.


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