Cisco Systems Inc., the US based networking and communications technology major, is expected to post a 3 percent increase in its quarterly sales figures as IT companies rush to upgrade their aging technology inhouse, signaling a sharp improvement in corporate IT spending.
The company will be announcing its fiscal second quarter 2010 results on Wednesday February 3rd, just after the market closes for the day.
Cisco’s quarterly financial report is highly anticipated by both Wall Street traders and the IT industry, as it will provide a clearer insight into the steady increase in information technology spending in the corporate structure.
However, several analysts and IT executives are of the opinion that expected earnings by the company will be somewhat mellow due to the uncertain economy.
A survey by FactSet Research, a market research firm, suggested that the networking technology maker is expected to post earnings of 35 cents a share, on revenue of $9.39 billion for the end-of-quarter results.
Mark Sue, a capital analyst for the Royal Bank of Canada, commenting on the expected Cisco financial results, said in a note that “fundamentally things are strengthening for Cisco and despite some lingering component shortages we believe the company closed its January quarter on a positive note.”