Economic 'mixed signals' dampen Cisco's positive results

Even as Cisco Systems (Nasdaq: CSCO) was reporting stronger fourth quarter earnings, Chairman-CEO John Chambers was warning that the economy may not be returning with as much stamina as the major cable equipment maker would like.

"We're seeing a large number of mixed signals," Chambers said. "We think the words 'unusual uncertainty' are an accurate description of what's occurring."

There was nothing uncertain about the results Cisco posted, as customers who have held off purchases as long as they could finally gave in and bought product. Earnings were $1.9 billion, up 79 percent from $1.1 billion a year ago and revenue climbed to 10.8 billion, a 27 percent increase over a year ago.

What's uncertain, and what caused the vendor's stock to take a hit, is a future where another dip into recessionland could lead to less business as already hurtin' cable operators pull back on capital expenditures. That is the "unusual uncertainty" that Chambers referenced.

For more:
- see this news release
- and this story

Related articles:
Cisco in push with Google for 1Gbps broadband network in U.S.
Program guides: Comcast adds to Cisco boxes, enters market
Cox unveils all-new interactive EPG, MoCA-fueled whole-home DVR

Suggested Articles

YouTube TV’s price hike gives cable operators breathing room to run the next big TV race, which will be fought and won on the TV UX battleground.

Charter Communications said it will add five “Latino targeted TV networks” to its Spectrum TV lineup.

Among pay TV subscribers and broadband-only subscribers, YouTube and Netflix were among the favorite services featured in makeshift video bundles.