3/18/2010-Barclays said Thursday that Cisco's (NASDAQ:CSCO) fiscal third quarter revenue guidance for a decrease of 1% to an increase of 2% ,excluding Starent, is looking increasingly conservative, given the company's refreshed Catalyst line of products.
Analyst Jeff Kvaal said, "We believe the refreshed Catalyst 2000 and 3000 access switches could drive an upgrade cycle. Cisco also unveiled new Network Services--EnergyWise, TrustSec, and MediaNet--that run across Cisco's routing, switching, wireless, and security platforms. The EnergyWise solution offers better power management capabilities, while MediaNet improves video delivery across the network and between devices. The TrustSec solution offers enhanced security and encryption across access technologies-- wired, wireless, and VPNs. The implementation of network services across Cisco's platforms is consistent with the company's end-to-end strategy."
Kvaal continued, "These features are likely to drive an upgrade cycle at least, and potentially share gains. Cisco leads the market with roughly 70% share by revenue and thus does not appear to be a likely candidate for share gains. However, by port, Cisco holds only roughly 50% of the market and thus management does see opportunity for share gains. We believe the refreshed line, along with recovering end markets, could drive healthy sales in the near-term. Switches comprise roughly one-third of Cisco's revenues, roughly half of which are access switches. Additionally, Cisco announced it has tripled the performance of the ISR G2 router introduced in October, and it added new security, unified communications, and management capabilities to the ASR 1000 router family."
Keywords: Cisco barclays guidance catalyst
Ticker(s): CSCO
