|
Cisco up on CEO's view
|
 |
October 3, 2001: 2:10 p.m. ET
Network equipment maker's top executive says quarter is on track
|
NEW YORK (CNNfn) - The top executive of Cisco Systems said Wednesday he is comfortable with Wall Street's financial estimates for the current quarter, resulting in a sharp spike in the Internet networking equipment maker's stock.
Shares of Cisco (CSCO: up $2.74 to $14.22, Research, Estimates), a top supplier of the equipment used to route traffic over the Internet, were more than 22 percent higher in afternoon Nasdaq trade after CEO John Chambers commented on his company's future.
Analysts generally expect Cisco to post an operating profit of 2 cents per share during the quarter ending in October, according to a survey conducted by First Call.
By First Call's count, the Street's revenue expectation currently runs at roughly $4.2 billion.
Speaking at an investor conference sponsored by Goldman Sachs, Chambers said he is comfortable with those estimates. He described as "moderate" the disruption to the company's business in the wake of the Sept. 11 terrorist attacks on the United States.
Several high-tech companies – most notably this week Compaq and Nortel Networks – have warned of weaker financial results, blaming increased economic weakness and lower shipments because of the attacks, which caused severe disruptions in transportation.
Chambers also said the company will likely be restructuring its internal incentive program to address the current market conditions, with the objective to continue to take market share whether the aggregate market contracts or expands.
In late August, Cisco restructured its business into 11 technology groups, a move made as part of a broader effort align the company's focus around changing customer requirements and emphasize its advantages as the communications market consolidates. 
-- from staff and wire reports
|
|
|
|
|
 |
|
