Cisco Jumps on Forecast; CEO Sees ‘Signs of Improvement’
- Company hires Herren from software maker Autodesk to be CFO
- Cisco has been trying to generate more software revenue
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Cisco Systems Inc. shares jumped as much as 9.6% after the company’s second-quarter forecast indicated it will beat analysts’ projections and suggested corporations and governments are beginning to resume spending on networking gear as the economy slowly recovers.
Revenue in the quarter ending in January will be flat to down 2% from a year earlier, the San Jose, California-based company said Thursday in a statement. Analysts on average had projected a decline of 3%. Profit, excluding certain items, will be 74 cents to 76 cents a share. Wall Street was looking for 74 cents, according to data compiled by Bloomberg. Shares of the company traded as high $42.38 in extended trading, after closing at $38.67 in New York.