Cisco Starts Recovery: Weekly Tech Recap

NEW YORK ( TheStreet) -- All eyes were on Cisco ( CSCO) 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.

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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) 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

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.

Apple ( AAPL) provided yet more evidence of its omnipotence on Tuesday when it briefly surpassed energy giant Exxon ( XOM) in market cap to become the most valuable company in the world.

In other Apple news, rumors about a possible September product launch continued to swirl this week.

A MacRumors interpretation of a report by Japanese site Kodawarisan, for example, said that Apple's annual iPod show is set for Wednesday, Sept. 7. This prompted speculation that this event could serve as the showcase for Apple's eagerly-awaited new iPhone, which is likely to be a faster 3G world phone capable of running on all U.S. and European networks.

Apple shares ended the week up 0.86% at $376.91.

Online retail giant Amazon ( AMZN) was also busy this week, launching a cloud-based version of its Kindle e-reader.

Unveiled Wednesday, the Cloud Reader is a Web-browser version of Amazon's Kindle app, which lets users read their Kindle books using just a browser -- even offline.

"We are excited to take this leap forward in our 'Buy Once, Read Everywhere' mission and help customers access their library instantly from anywhere," said Dorothy Nicholls, director of Amazon's Kindle business, in a prepared statement.

Also this week, Amazon CEO Jeff Bezos, along with software chief Greg Hart, filed for a patent to protect mobile devices from impact, according to an application uncovered by GeekWire.

Amazon shares ended the week up 1.99% at $202.3.

Groupon amended its IPO filing on Wednesday, adding mixed second-quarter results and dropping a controversial prettified metric that glossed over customer acquisition costs.

The Chicago-based daily deal site, which filed for an IPO in June, said second-quarter losses widened to $255.4 million from $146.5 million in the first quarter.

But sales for the quarter ended in June more than doubled to $1.5 billion from the $645 million first-quarter level, as subscribers grew to 115.7 million from 83.1 million.

Two of tech's biggest names, HP ( HPQ) and Dell ( DELL), are on deck to report quarterly results next week. Dell reports its second-quarter numbers on Tuesday while HP posts its third-quarter results after market close on Thursday.

-- Written by James Rogers in New York.

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