Cisco CFO Reaffirms Financial Outlook
Cisco Systems Inc. is still on track to meet its financial targets for the coming years as demand for bandwidth continues to drive network equipment sales, the company's chief financial officer said.
The company, which raised its financial forecast last month, expects annual revenue growth of between 12 percent and 17 percent over the next three to five years. Cisco CFO Dennis Powell reaffirmed the numbers at financial analysts meeting Wednesday.
Reiterating a popular refrain of Cisco executives, Powell said rising Internet traffic and the heavy-duty bandwidth demands of video will continue to be the main drivers of Cisco's growth as its corporate customers upgrade their equipment.
He also cited the company's diverse product lineup -- which ranges from Internet routers and switches to security products and telephones that make calls over the Internet.
"This is one of the biggest reasons we have been able to do what we say we're going to do quarter after quarter, year after year," Powell said.
Cisco's stock price is up 16 percent since the start of the year, leaving the company with a market value of more than $195 billion and the distinction of being Silicon Valley's most richly valued company.
On Wednesday, Cisco shares lost 10 cents to close at $32.22.