Economic UncertaintyBy Reuters | Print
Cisco Systems Inc gave a cautious business outlook on Tuesday, although its quarterly results exceeded expectations as rising Internet traffic fueled demand for network equipment.
Cisco forecast revenue growth of 9 to 10 percent for the fourth quarter, compared with Wall Street's 9.1 percent consensus estimate. However, Chief Financial Officer Frank Calderoni urged caution.
"We encourage you to model on the conservative side due to the continued uncertainty in the macroeconomic environment in the near-term," he told analysts.
And while Cisco reiterated its long-term revenue growth target of 12 percent to 17 percent, Chambers said he was not sure when that pace of growth would return.
Chambers also said he would remain alert to risks of U.S. economic weakness spreading to other parts of the world. While the United States accounts for around half of Cisco's business, strong sales overseas, particularly in emerging markets, has been supporting its growth of the past year.