Has Telecom — Read: Cisco — Already Topped?

Things were just getting going for telecom, and Cisco in particular, and a bunch of people are thinking that maybe this is, at least for now, as good as it gets. As a Bloomberg piece points out, analysts are pulling back on Cisco’s results, due later today, predicting (in classic analyst speak) that they would be surprised to be surprised at the results.

Why all the non-surprise? Because, in part, the consensus has been ratcheted up for Cisco after five solid quarters. But it’s also because some Cisco suppliers are saying they didn’t get their doors blown off by Cisco orders this past quarter:

JMP’s Samuel Wilson, who cut his rating to “market perform” Jan. 22, cited comments from Cisco suppliers Solectron Corp. and Jabil Circuit Inc. for the move, after they said their Cisco business was “O.K. at best” through November.

Clients are slowing spending on communications equipmen after upgrading their networks last year. Sales of routers, which help computers communicate on a network, may rise 15 percent in the first three quarters of 2007, compared with 22 percent over the same period a year ago, according to Synergy Research Group in Reno, Nevada.


  1. ahh… no.