Cisco Forecasts First Revenue Growth In A Year

JORDAN ROBERTSON

SAN FRANCISCO (AP) — Cisco Systems Inc. doesn't want Wall Street to interpret its forecast for its first quarterly revenue growth in a year as evidence that the U.S. and other economies are roaring back.

A slow improvement in orders is under way but the pace is still slow and the recovery is fragile, executives from the world's No. 1 maker of computer-networking equipment told analysts Wednesday.

Cisco forecast that revenue will grow 1 percent to 4 percent in the current quarter, which ends in January. That would translate to revenue of $9.2 billion to $9.5 billion. Analysts polled by Thomson Reuters were expecting a decline from last year.

Cisco's results are seen as a gauge of how large corporations and government agencies and Internet providers are managing their technology budgets. Rising sales suggests they are loosening the pursestrings to buy Cisco mainstays such as routers and switches, which direct data traffic.

Cisco's CEO, John Chambers, said orders are rising again after passing a "tipping point" in the downturn this summer.