Tomahawk, WI 11/13/2013 (BasicsMedia) –  There appears to be plenty of hurdles for Cisco Systems, Inc. (NASDAQ:CSCO) as it reports its Q1.14. Whatever happens to the networking giant is expected to impact on other industry plays and the industry’s future. Investors are keen, but what can one expect from Cisco’s figures?

Cisco reports after the market close on Nov. 13, and Wall Street has put forward expectations for the networking giant. The expectations are such that the company should reported $12.35 billion in revenue and $0.51 on per share earnings. In other words, Wall Street expects the company to top its year ago figures of $11.9 billion revenue and $0.48 per share earnings. This is a hurdle for Cisco considering that the company is just emerging from a transformational phase which is expected to impact its earnings.

This networking company has a rich history; it leads its industry peers on several fronts. It’s a growth stock as it is a revenue stock. Its products are just up there and the market recognizes Cisco Systems, Inc. (NASDAQ:CSCO) on a first glance. Then also, the company’s network of clients is just wide, giving it a bigger market share. However, on a bad day, even such standings in the industry can be painful. Looking at Cisco in post government shutdown, there is fear that its earnings would reveal serious dent, why? Because of its wide business network which captures even the government and if government transaction were paralyzed for those several days, it can only be said that a segment of Cisco’s business took the heat.

Pressure from 4,000 staff layoff

On to the challenge emanating from government shutdown, Cisco Systems, Inc. (NASDAQ:CSCO) also undertook layoff to reduce its staff headcount in efforts to trim operational expenses. A lot of money went into implementation of the layoff and as such, a significant hole must be somewhere in its revenue. The company sought to reduce its global workforce by 5% and this means quite a lot of money in completing the process.

For a very long time, investors are used to Cisco smashing expectation figures. If it reports the Wall Street estimate, it would have entered its lowest revenue and earnings reporting year over year in two years. This is not a pleasing record, but it is eminent.

The Q1.14 data may not offer much for judging Cisco. It would be fair to say that for the recent past quarters, the company has been laying ground for its future. Now that it has reduced workforce and its balance sheet is visibly strong, the coming quarters should reveal the very best of Cisco. Its strong presence in cloud computing is something that continues to earn it significant revenue. This is despite the segment being a red-hot space featuring other big names like HPQ, Oracle, IBM. In this segment still, the company expects improved sales as biggest buyers Google, Amazon and Facebook seek to undo the competition in the industry at all cost.

Considering Cisco’s aggressive moves lately, it deserves credit for seeking to improve its software-defined-networking (SDN) division as this seems to be a very promising revenue earner. Cisco’s acquisitions have also answered the most critical call in the industry. As such, in the long run, Cisco Systems, Inc. (NASDAQ:CSCO) has the promise.

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