Cisco Earnings Preview: Emerging Markets, Margins In Focus

The routing and switching transition seems to be going well, and the company expects these business divisions to contribute meaningfully to top line and bottom line growth in the next few quarters. Cisco expects its overall revenue to grow by 4-7% in the second quarter, slightly below market expectations of 8%. On the cost side, the company expects non-GAAP gross margins to be 61-62% in Q2, slightly below those reported in the first quarter (62.5%). Gross margins are impacted by sales growth, pr...