Cisco Earnings Up, But Outlook Cloudy


Cisco Systems Inc. saw a healthy jump in revenue for the final months of
2002, but its outlook for the first quarter of 2003 isn't exactly rosy.

The San Jose, Calif.-based network-gear provider, which supplies cable modems
and termination systems to the cable industry, posted a net income of $991
million for its second fiscal quarter of 2003.

That's a significant jump compared with the $660 million logged in the same
quarter of 2002. That despite a less-than-friendly economy, according to CEO
John Chambers.

"From a global CEO and government-leader perspective, we remain in a
'show-me' economy," he said in a release. "What I've heard from these leaders is
clear: As their business improves, their investment priorities will center on

That may be one reason why Cisco leaders are making no great promises about
the third fiscal 2003 quarter, projecting sales to be flat or to drop 3