Cisco set to reveal a more stable market

Analysts expect Cisco's quarterly results to offer hope of stability after a traumatic year.

The company's second-quarter sales, which are released on Wednesday, are expected to reach $4.54bn (€5.25bn).

This is lower than the $6.75bn (€7.84bn) posted last year.

John Chambers, the company's chief executive officer and president, has told investors that overall orders for November met expectations.

Mr Chambers says US sales are the "wildcard" in short-term projections.

However, analysts believe the US market has begun to stabilise and will show improvement in the company's bookings.

Cisco offered zero per cent financing to small and medium-sized business deals during the quarter.

One UBS Warburg analyst believes it will have increased the company's consumer business.

Nikos Theodosopoulos expects Cisco to extend the promotion through the third quarter.

He also predicts Cisco will report an improvement in inventory turns, an increase in deferred revenue, and positive operational cash flow.