Cisco Systems results beat Street, CEO sees challenge in Europe
"The metric people don't have as much confidence in is revenue," he said. "There was upside to consensus in the second quarter, but it was fairly modest."
Suppiger said Cisco's stock had been trading higher before the results and investors had been hoping for more comments on recovery.
"He certainly said positive things about the federal sector and positive signs in Europe, but there is not a lot of tangible evidence that we have turned the corner," Suppiger said.
For its fiscal second quarter that ended on Jan. 26, Cisco reported that revenue rose 5 percent to $12.1 billion versus a year ago. Analysts, on average, were expecting $12.06 billion, as compiled by Thomson Reuters I/B/E/S.
Income, excluding items, rose 6.2 percent to $2.7 billion, or 51 cents per share, 3 cents above analysts' average estimate of 48 cents a share.
Chief Financial Officer Frank Calderoni said demand for equipment to enable data centers and cloud computing were the main drivers in Cisco's results, as well as demand for infrastructure for wireless networks, mobility and service provider video.
Cisco's core business is routers and switches, which direct Internet traffic, but the company has begun to focus on data centers, enabling and providing cloud computing technology and video platforms, as well in its goal to become the No. 1 Information Technology company.
Its data center business showed 65 percent growth compared with the previous year, while its wireless business and service provider video offerings grew 27 percent and
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