This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cisco Starts Recovery: Weekly Tech Recap

NEW YORK ( TheStreet) -- All eyes were on Cisco (CSCO - Get Report) this week as the embattled networking giant put out solid fourth-quarter numbers Wednesday.

After a run of quarters marred by weak outlooks, the switch maker offered decent first-quarter guidance, predicting year-over-year revenue growth in line with analysts' estimates.

Cisco put out solid fourth-quarter numbers this week.

In an interview with TheStreet on Thursday, Cisco CFO Frank Calderoni explained that the company's recent attempts to streamline and improve its business are starting to pay off.

"Our restructuring efforts are well underway and delivering results," he explained, noting that the company's quarterly revenue came in at the high end of its guidance. "We're very pleased with the solid quarter that we just announced."

Investors cheered Cisco's numbers and the impact of its corporate overhaul, pushing the networker's shares up more than 14% in early trading on Thursday.

> > Bull or Bear? Vote in Our Poll

Cisco, however, is still not out of the woods. In switching, which makes up almost one-third of Cisco's total sales, the company saw its revenue decline 4% year over year as users continued their transition to lower-priced products. Cisco's router revenue was also down 2%, despite a 17% hike in orders.

Speaking during a conference call after the market closed Wednesday, Cisco CEO John Chambers also noted ongoing weakness in the public sector.

Cisco shares closed up 0.44% at $15.99 on Friday.


Cisco's results certainly offered some respite from the gloom that has enveloped tech stocks following the recent U.S. credit downgrade. Chipmaker Nvidia (NVDA - Get Report) also put out positive numbers this week, swinging to a profit after market close on Thursday and offering robust guidance.

Investors welcomed the numbers, pushing Nvidia's shares up 14.4% to $15.35 in extended trading on volume of more than 4 million, according to Nasdaq.com.

Nvidia, however, dramatically surrendered these gains after market open on Friday. The company's shares were down 0.3% at $13.37 by late morning amid lingering concerns about the growth of its Tegra chips, which are used in smartphones and tablets including Motorola's (MMI) new Photon phone.

Nvidia's stock closed down 3.95% at $12.88 on Friday.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
HPQ $33.66 -0.41%
NVDA $22.61 -0.62%
DELL $0.00 0.00%
AMZN $422.94 0.02%
AAPL $128.73 -0.17%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.46 +6.17 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs