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
NEW YORK (
Cisco(CSCO - Get Report) investors breathed a sigh of relief on Thursday following the company's solid
fiscal fourth-quarter results and its surprise dividend increase.
Shares of the networking giant climbed 9.6% to $19.02 Thursday, boosted by the tech bellwether's comments on its conference call and
interviews. The results also lifted shares of networking firms
Alcatel-Lucent(ALU - Get Report), which gained 4.7% and 3.5%, respectively. Cisco rivals
Juniper(JNPR - Get Report) were up 1.6% and 1.1%.
Despite concerns about
a weak global economy, Cisco struck a positive tone during the call. The themes of the previous quarter were caution and
weak guidance, but this time Cisco had a number of achievements to talk about.
After warning of deteriorating orders in its fiscal third quarter, Cisco "noted a marked improvement over the past eight weeks," said Nomura Equity Research analyst Stuart Jeffrey in a note released Thursday. "Declines in Europe are set to deepen, but North America and Asia are showing signs of improvement."
Cisco's fourth-quarter revenue from Europe, the Middle East and Africa (EMEA) slipped 4.5% from a year earlier. Revenue from the Americas, however, climbed 7.3%, while Asia sales increased 7.9%.
Boosted by its U.S. enterprise business, Cisco grew its Americas product orders 4%, and it was three times that amount in Asia. EMEA product orders slumped 6%.
interview after the market close Wednesday, CEO John Chambers said the company's enterprise business could be better. The San Jose, Calif.-based firm, he said, plans to replicate its service provider strategy to tap more dollars in the enterprise industry.