Cisco beats sales estimates thanks to the US

The American network equipment maker Cisco has reported quarterly revenue which is higher than expected.

It has the United States to thank for that, as the company’s strong demand for Cisco products offset weaknesses elsewhere.

According to a report by Reuters, the company’s performance has seen its shares rise four per cent in extended trading on Wednesday.

The company is the market leader in selling network equipment to businesses, controlling about half of the £24 billion global market and overshadowing rivals Hewlett-Packard and China's Huawei Technologies, according to market research firm Gartner.

Needham & Co analyst Alex Henderson said the 7 percent rise in revenue in the Americas was a "laudable performance." The region accounted for 61 percent of total sales in the fourth quarter.

"I think for the entire market - and Cisco is a microcosm of it - the international markets are the key issue."

"Cisco's best years are ahead of us," Chuck Robbins said on the post-earnings conference call, his first as Cisco's chief executive. Robbins took over from veteran John Chambers in July.

The company forecast revenue growth of 2-4 per cent for the first quarter, which translates to £8 - billion - £8.15 billion. It forecast adjusted earnings per share of 55 cents-57 cents.

The company’s latest results also show that there’s an ongoing recovery in sales of Cisco’s switches and routers. These sales were slowed down by telecom carriers, its traditional customers, in the second half of last year.

Cisco said revenue from other geographies declined marginally.