Cisco to Report Results as Analysts Look Ahead

“New-economy” bellwether Cisco Systems Inc. will report fiscal third-quarter earnings Tuesday, but investors and analysts have their eyes on the future instead as everyone looks for the bottom of the current technology-spending slowdown.

The San Jose-based company, which makes gear that helps power the Internet, warned last month that its third-quarter results would be far below forecasts. It also said it plans to cut 8,500 jobs, or 17% of its work force, and take charges of as much as $3.7 billion.

Other than such details as what products will be discontinued and how many of the targeted jobs have been eliminated so far, the quarter that ended April 28 is already ancient history to portfolio managers and analysts.

“Really, it almost doesn’t matter how ugly this quarter’s number is as long as they can give pretty decent forward guidance,” said Kevin Landis, portfolio manager with mutual fund company Firsthand Funds.

Nevertheless, analysts and portfolio managers said they will dissect the third-quarter results for items such as more details on the $2.5-billion inventory write-down, what products will be discontinued, its revenue by segments, how much cash Cisco has on hand and whether it will buy back shares.