Cisco has revised its revenue forecast for the next three years due to slow economic growth and rising competition.
According to an article on BBC News, the company was expected to grow its revenue by 12-17 percent in the next three years.
The company reduced its target, claiming that it believes its revenue will grow by only 5-7 percent in the next three years. Cisco also revealed that it expects its profits to increase by 7-9 percent over the same period.
Interestingly, the market was expecting Cisco to slash its forecast, but was happy that it was not as low as expected. The company’s share price increased by 1.6 percent after the announcement.
Cisco has been trying to navigate through a hostile market and vowed to cut costs and increase profits to remain profitable while still providing quality products to customers.
"Cisco was very upbeat. It sounds like their efforts in terms of streamlining the company and simplifying the structure are paying off and allowing the company to execute better at least in the near term," Sterne Agee analyst Shaw Wu told Reuters.