Cisco Earnings Preview: Emerging Markets In Focus

Cisco expects its overall revenue growth to return to positive territory in the fiscal first quarter, ranging between zero and 1%. With revenues remaining almost flat, gross margins are unlikely to recover in the near term given the long sales cycles associated with launches of new networking products. In the coming years, we expect Cisco to be able to defend its overall operating margins better as new high-end products start gaining traction and the company's cost-cutting measures take hold.