Cisco CEO Optimistic About the Economy - Digits - WSJ

Cisco CEO Optimistic About the Economy - Digits - WSJ: "By Ben Worthen | Cisco Systems CEO John Chambers was one of the first tech executives to predict that the recession — then limited to the financial sector — would spread to the rest of the economy. Now he’s among the first to say it’s on the way back.

Helge: Are we going to see a V or W shaped recovery?

The economy has started a “gradual recovery,” Chambers said Wednesday during a meeting with Wall Street Journal reporters and editors, echoing optimism he expressed when discussing Cisco’s fourth-quarter results in August. Chambers said that he bases his assessment of the economy on several factors, including the stock market, conversations with customers and the rate at which Cisco receives orders. Based on these criteria, he believes that the U.S. is coming out of the recession. He added that Asia seems to be picking up as well, but that he expects Europe to lag behind.

Helge: What about Europe?

Chambers said he expects that the Obama administration’s stimulus package will help the recovery. It’s also had another effect: Tech companies like Cisco are investing in the areas the government is targeting, such as health care and upgrading the electricity network.

Helge: Health care! Are we ready to invest?

He didn’t agree with the government’s decision not to grant a tax holiday that would allow companies to repatriate cash from overseas. Cisco, which makes networking gear such as routers and switches, has approximately $29 billion overseas, he said. Now Cisco will be forced to spend more outside the U.S. than it would otherwise like.

In general, Chambers said that neither the government nor the private sector can turn the economy around on their own. “You’re not going to have a recovery without the government and business working together,” he said."

Helge: Governement and Business united!

Another one rides the bus on ZDNet.com

Another one rides the bus on ZDNet.com: "Another one rides the bus Taking Wi-Fi on a ride

Cisco Systems is collaborating with cities around the world to see if broadband can be exploited to cut down energy consumption and traffic. In San Francisco, the company has rigged up municipal buses with free Wi-Fi to coax commuters out of their cars. CNET News.com's Michael Kanellos grabs a transfer and checks it out.

Helge: The connected city, commuting, bus riding and wi-fi while you ride. Mobile phoning while on the move hasn't been a big deal for ages. Internet is now ready for the ride. Green and Connected while on the bus. While you are going green. Cisco is showing a pilot project in SF. There is a pilot in Amsterdam as well. Hamburg and Madrid are also among the cities. If this concept succeeds they take this around the world.

Cisco: 'We're Talking Ourselves Into This Slowdown'

InternetNews Realtime IT News – Cisco: 'We're Talking Ourselves Into This Slowdown': "Quarter after quarter, year after year, Cisco Systems has been a bellwether for the IT industry. So when the networking giant sees trouble ahead, people take notice.

Helge: Long term investments in IT-infrastructure as an indicator.

During Cisco's Wednesday earnings call for its second fiscal quarter, CEO John Chambers announced solid results. However, the news was tempered by his warning that the company is seeing signs of a slowdown in its business.

Helge: The signs of slowdown.

For the quarter ending Jan. 26, Cisco said net income totaled $2.1 billion ($0.33 per share), a year-over-year gain of 7.2 percent compared to the same quarter last year. The networking vendor's net sales also rose to $9.8 billion, an increase of 16.5 percent over the second quarter of 2007.

Helge: Good numbers.

While those numbers looked rosy, Chambers grew cautious when providing guidance for the next quarter, thanks to what he described as a slowdown in sales during January.

Helge: They said "rosy" but sales slowdown in January 2008.

As a result, the company lowered its sales growth expectations to only 10 percent for the coming quarter. Chambers said Cisco is sticking with its long-term growth target of 12 to 17 percent, however.

Helge: Just a little slower...

The report sent Cisco's shares tumbling in early-morning trading on Thursday. What's to blame for the showdown? To Chambers, it's largely self-fulfilling: the fault of businesses believing hype about a slowdown. Consequently, he said."

Helge: Are we talking ourself into a slowdown?