Cisco sees benefit even if rebound delays further

Cisco Systems’ better than expected results may be the driving force behind an uplifted market both yesterday and today. But despite the boost, Cisco’s ever-positive CEO John Chambers doesn’t believe the service provider segment should be looking for recovery for at least a couple quarters.

But even if a rebound for the service provider segment is delayed, Chambers sees room for Cisco to benefit.

“If it takes longer to turn around I’d argue that it works to our long-term benefit because we we’ll be able to invest in a time when many of our peers won’t be able to invest,” Chambers said.

Whether that strategy will work will simply be a matter of time for the company. Chambers also noted that while the service provider segment is ailing, Cisco is looking to make more strategic wins.

But rather than put a short time table on that strategy, he believes it won’t necessarily happen any time soon.

“In the service provider area we are looking for the strategic wins. We are looking 3 to 5 years out,” he said.

Cisco initially plans to look at specific areas within that segment and then later assess how the company can play across the segment as a whole.

The company reported revenues of $4.8 billion for its fourth quarter, which was an increase of 12% over the same quarter last year. The company also reported an income of $4.8 billion in its third quarter.

Chambers noted that while the fourth quarter was a pleasant surprise, its next quarter is expected to be flat to up slightly.

Cisco shares closed up $0.91 today at $12.98.