Cisco Fans Eager to See IT Recovery

Several analysts say they wouldn't be surprised if the company stuck to its pattern and ended the quarter slightly ahead of both top- and bottom-line expectations.

More intriguing is whether the company has maintained its order momentum. Investors are understandably eager to hear Chambers describe the mood among business customers. Cisco's dominance of the corporate computer networking market gives it a prime vantage point to judge spending trends. And Chambers has certainly relished the opportunity to play the role of global economist in the past.

But some investors say, ever since Chambers blew a big call in 2000 by pointing up as the market veered down, he has been far more circumspect in his predictions.

Money manager Doug Whitman with Whitman Capital is a long-time Cisco fan, and he says it's not likely that Chambers will make any sweeping pronouncements this time around.

"He'll be mildly more optimistic, which is indicative of the change in the economy," says Whitman. "The real question is, what is the pace of the turnaround?"

Momentum Crowd

Beyond guidance, investors hope to hear a progress report on some of Cisco's growth businesses like storage, security and sales to phone companies.

Though Cisco executives may not spend much time on earnings day discussing shifts in business strategy, investors and analysts say the company could briefly talk about the opportunities in the network services market.

Cisco has been preparing a strategy to extend its talents at integrating network gear beyond its own equipment sales and installation, say analysts. This network-management outsourcing role was made popular in the last decade by outfits, like IBM (IBM Quote), that were keen on finding new sources of revenue beyond hardware sales.