Cisco CEO Chambers sees US recovery, emerging market challenges
NEW YORK, Dec 12 (Reuters) - Cisco Systems Inc Chief Executive John Chambers said on Thursday he is beginning to see the U.S. market recover but cited challenges in emerging market economies such as Russia and Brazil.
Chambers said at the company's financial analyst conference in New York that while emerging markets are "extremely challenged" right now, he expects 6 percent to 10 percent growth there when those markets recover.
For the U.S. market, Chambers cited strong growth prospects in the enterprise market, as its sales pipeline in that segment is up 20 percent.
Cisco stunned the market on Nov. 13 by warning that revenue would fall as much as 10 percent this quarter and could keep declining for several quarters. It blamed everything from emerging economy weakness and political backlash in China to company-specific problems, such as market-share losses in network equipment and declining sales in set-top boxes.
Some investors had said ahead of the meeting that they wanted more details about why Cisco's financial outlook was so weak. Chambers said that "the vast majority" results from broader market issues rather than Cisco-specific issues.
(Reporting by Sinead Carew; Editing by Gerald E. McCormick)