Cisco Systems Inc Chief Executive John Chambers said on Monday recent turmoil in financial markets was unlikely to affect either the network equipment maker or its customers.
Chambers, one of Silicon Valley's most influential executives, told Reuters in an interview that he was witnessing "the strongest global economy in my lifetime." "If people are calm and react logically, most people feel this will work its way through the system over the next three to six months, and that the Federal Reserve and other central banks will be there to step in as appropriate to help it work through the system," he said. "That's the most likely scenario."
He said the company was not immune to economic change, but added that the most likely scenario was what it had forecast last week along with its quarterly results.
Cisco reported a better-than-expected quarterly profit and outlook, citing strong demand from telecoms carriers for advanced equipment that enables faster Internet speeds.
It also raised its long-term revenue growth target to between 12 percent and 17 percent year-on-year, from a previous range of 10 percent to 15 percent, saying it would be helped by its expansion into new technology. Cisco makes routers, switches and other network equipment, but has recently been expanding into software as well as consumer markets.
Chambers said he hoped to push more aggressively to launch more consumer products, and that the San Jose, California-based company was likely to unveil new devices in this area soon.
"I would say we've laid a good foundation for the strategy," he responded when asked about its consumer strategy, citing the company's acquisitions of cable set-top box maker Scientific-Atlanta and video-on-demand software maker Arroyo. "I tend to want to lean more aggressively in the consumer market," he said. "Within the next 12 to 18 months I think you will see us move into certain unique devices and opportunities."
He did not give details on what kind of device it would be, but said the company's strategy was to expand into areas that are "adjacent" to products that it already sells. Cisco shares fell 1.2 percent to $31 on Nasdaq on Monday.
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