Cisco Profits Up, But Murky Outlook Drags Stock Down

Networking giant posts solid first quarter; prospects dimmer for next one
By Wesley Oliver,  Newser Staff
Posted Nov 7, 2007 8:51 PM CST
Cisco Systems Inc. chairman and Chief Executive Officer John Chambers speaks during a demonstration of Cisco's TelePresence Web 2.0 technology in Bangalore, India, Wednesday, Oct. 31, 2007. (AP Photo/Aijaz...   (Associated Press)
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(Newser) – Cisco touted a 37% increase in its first-quarter profits, but it wasn’t enough on Wall Street to overcome a pessimistic outlook for the company's current quarter. The network equipment maker said its revenue-growth forecast of $9.79 billion will fall just short of the $9.81 billion most analysts expected. The news depressed the stock by 9% in after-hours trading, MarketWatch reports.

“Looks pretty solid,” said one analyst, who added that “investors were expecting more.”  Cisco did have good news: During its fiscal first quarter, which ended Oct. 27, it boosted revenue by 17%, Reuters reports, partly on the strength of new products. But another analyst warns the company will need to “work hard to maintain growth” to fend off rival Juniper Networks.