Why Cisco Systems, Inc. (NASDAQ:CSCO) Is Still a Buy


Dallas, Texas 08/29/2013 (Financialstrend) – In spite of lackluster fiscal 4th quarter facts, Cisco Systems, Inc. (NASDAQ:CSCO) still deserves a position in growth portfolios.

Yes, the Silicon Valley networking tools company declared that it is cutting down its staff by around 4,000 – 5 per cent of its personnel. Yes, deals from Asian as well as Chinas markets remained feeble. And yes, chief executive officer John Chambers stated that development in product lines from particular nations such as Asia and China are “not at the speed we wish.” But yes, the company’s stock is still a ‘good’ buying option.

In actual fact, the company appears a better buy after declaration of the job reductions and the tempered viewpoint for the coming quarterly period sent scrip down by around 9.5 per cent. Why? The news and forward direction was not actually that awful. Sales in the firm’s original biz of routing gear remained flat, but income in the company’s largest section, switching equipment, increased by 5 per cent.

In addition, the company’s data center group, which consists of its novel business in server systems, augmented 43 per cent.

The San Jose, Calif.-headquartered firm made $0.42, or $2.27 billion, during the quarterly period ended July 27, surged 17 per cent from $1.92 billion during the corresponding period of 2012, the report said. Revenue zoomed to $12.42 billion as compared to $11.69 billion during the same period of 2012.

The largest manufacturer of networking tools — famous for hardware, which aids information flow to, from, and around the web — counts communications carriers, in addition to a cache of other firms, amongst its clientele. Cisco’s routers, OSs, and Voice over IP products are certainly the heart of the web and cloud-computing division. As the company slashes costs and reorganizes operations, it also continues to nurture.