Business

Cisco sales are good, but their clients become poorer
by Corina Ciubotaru

Cisco Systems announced some 25 of its major clients, including eight banks, have been slow in buying their products this year. A network supplier, Cisco is one of the biggest companies in the computer business, with a market value of $180 billion on Thursday, and its words sent shivers down many CEOs' spines. It was believed this industry would not be affected much by the financial crisis that has been troubling America since this summer, but since all things are linked in an economy, a crisis in the computer business could not have been avoided. After the announcement, both Google and Apple shares dropped significantly, by $55.06 and $18.53, respectively and so did the Nasdaq index which fell by 56.72, or 1.9 percent. Still, Cisco is a company that's been doing very well and expects a 16 percent growth in the second quarter, as major firms only account for 40 percent of their US market. Cisco officials claim the other segments they address, service provider and commercial, are still strong. Their recent acquisitions and clear view of what the market needs will probably save them from their own little crisis in the future. They had an income of $2.2 billion in the first quarter and their numbers surpassed analysts' expectations; they were expected to have sales of $9.54 billion, and the actual number was $9.55. And with major clients, sales going up from last year and a strong brand name, it doesn't seem like Cisco will suffer much from external financial troubles.

related story: http://news.yahoo.com/s/ap/20071108/ap_on_hi_te/high_tech_comedown;_ylt=Aik3aRJ.AxlH9QYBEETPVfqs0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:52 PM