Channel says Cisco in for a positive quarter

Most queried expect a 5% sequential hike in revenue for Q1, 2010

Cisco's channel reports a Q4 in line or slightly ahead of expectations, according to a bulletin issued this week by Oppenheimer & Co. Oppenheimer queried 31 channel partners in the US and Europe to determine how Cisco would end fiscal 2009 and begin fiscal 2010.

Respondents say enterprise spending constraints have eased, Cisco's pipeline has improved and the company is pushing hard for a strong finish to fiscal 2009. Cisco reports results on August 5.

Two-thirds of the respondents say Cisco could grow sequential revenue 5% in Q1 2010 from Q4 2009, well ahead of Oppenheimer's own expectations of 2% quarter-over-quarter growth. Reports from Cisco's supply chain also indicate sequential growth between 4% and 7%, prompting Oppenheimer to raise its estimates for the company from $24 per share to $25.

 With a healthy slate of deals lined up next quarter and the public sector also set to contribute (gov't fiscal year-end), the channel remains bullish on Cisco.

The channel reports that Cisco is aggressively pricing its first Unified Computing System starter kits for enterprise testing and evaluation, and 44% of UCS-certified respondents are expecting moderate adoption of the data center platform over the next year, Oppenheimer states.

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