Investopedia: Cisco Dunks ... On The Kiddie Hoop

For all of the excitement about Cisco's (Nasdaq:CSCO) "strong" first quarter, an important detail seems to be overlooked. Namely, that expectations have been going down steadily on Cisco for some time, and if the company couldn't beat this low hurdle, that would be a sign of some serious problems indeed. Though I've long been a bull on Cisco's under-appreciated inherent value, investors should keep a little perspective here and realize that Cisco is not exactly fully in the clear just yet.

A Mildy Encouraging First Quarter  
After a rough stretch of financial underperformance, Cisco did announce estimate-beating revenue and 5% year-on-year growth. Product sales grew 3% from last year and were roughly flat with last quarter, while service revenue picked up 12 and 1%, respectively. Switching and routing were both reasonably strong on a sequential basis (up almost 2 and 5%, respectively) and make up about two-thirds of the product revenue base.

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