Cisco Profit, Forecast Boosts Computer-Related Shares (Update1)
By Justin Baer
05/08 17:51
quote.bloomberg.com
San Jose, California, May 8 (Bloomberg) -- Cisco Systems Inc. helped lift the Nasdaq to its biggest gain in more than a year after the world's largest computer network-equipment maker's earnings suggested a slump in demand for computer-related gear may be over.
Cisco soared $3.19, or 24 percent, to $16.27 on volume of 195 million, its biggest percentage gain since February 1990, when the company first sold stock to the public. Shares of Microsoft Corp., Intel Corp. and Dell Computer Corp. also rose.
The company had its first sales increase in five quarters and Chief Executive Officer John Chambers said yesterday he was more optimistic about fiscal fourth-quarter demand. Cisco said business picked up in April, providing an early glimpse at how others may fare in the current quarter, investors said.
``We're starting to see some signs of life,'' said Marc Klee, who manages the $600 million John Hancock Technology Fund and has Cisco among his 10 biggest holdings. ``These stocks have been beaten down for 26 months now.''
Cisco said yesterday that profit, excluding costs for job cuts and acquisitions, rose to 11 cents a share in the fiscal third quarter, 2 cents higher than estimates. |
