NEW YORK, May 12 (Reuters) – Cisco Systems Inc’s <CSCO.O> quarterly results topped Wall Street expectations and Chief Executive John Chambers said the network equipment maker is gaining market share as the global economic recovery accelerates.

Chambers, however, also cautioned investors to wait for more economic data before becoming too optimistic, and shares of the company fell 3 percent in extended trading after gaining 3 percent on Nasdaq earlier on Wednesday.

“Given all the uncertainties regarding the strength and shape of the recovery, concerns about the recovery possibly slowing and the unknown extent of job creation, we encourage you to wait for additional economic data before becoming too optimistic,” Chambers said on a conference call.

Cisco forecast current-quarter revenue growth of 25 percent to 28 percent year on year. The average Wall Street forecast calls for revenue of $10.68 billion, which would be up about 25 percent from the year-earlier period.

The world’s biggest maker of routers and switches said its revenue in the fiscal third quarter through May 1 rose 27 percent to $10.4 billion, above the average analyst estimate of $10.2 billion, according to Thomson Reuters I/B/E/S.

Quarterly profit rose to $2.2 billion, or 37 cents per share, compared with $1.3 billion, or 23 cents a share, a year earlier. Excluding items, profit was 42 cents per share – higher than Wall Street’s forecast for 39 cents per share.

“It was a good solid quarter for a major company that tends to not have big positive surprises any more,” said Tim Ghriskey, chief investment officer of Solaris Asset Management, though he moted that Cisco’s margin might have disappointed some.

NEW YORK (Reuters) – IBM forecast roughly doubling its profit by 2015 as it pushes further into emerging markets and lucrative services and software businesses, sending its shares up over 4 percent and boosting investor confidence in the tech sector.

International Business Machines Corp <IBM.N> Chief Executive Sam Palmisano told an annual investor briefing on Wednesday that the company expects earnings per share (EPS), excluding items, of “at least $20″ for 2015.

That would be double its reported profit of $10.01 a share last year, and above some analysts’ projections.

“At first glance, IBM’s 5-year goal sounds lofty. It is considerably higher than our own 5-year forecast, updated earlier this year,” said Annex Research analyst Bob Djurdjevic. “But the company’s recent track record of meeting or exceeding expectations is also impressive. So Palmisano and his team have credibility in their corner.”

IBM has over the past decade shifted its focus to high-margin software and services from commoditized hardware. It bought PwC Consulting from PricewaterhouseCoopers in 2002, and sold its personal computer business to Lenovo Group Ltd <0992.HK> in 2005.

IBM has also been increasing investment in new technology services, including “business analytics” which helps clients plot trends, predict risk and cut costs by combining

“More and more of our profits will come from these higher profit segments,” Palmisano said.

NEW YORK, May 12 (Reuters) – IBM forecast roughly doubling its profit by 2015 as it pushes further into emerging markets and lucrative services and software businesses, sending its shares up over 4 percent and boosting investor confidence in the tech sector.

International Business Machines Corp <IBM.N> Chief Executive Sam Palmisano told an annual investor briefing on Wednesday that the company expects earnings per share (EPS), excluding items, of “at least $20″ for 2015.

That would be double its reported profit of $10.01 a share last year, and above some analysts’ projections.

“At first glance, IBM’s 5-year goal sounds lofty. It is considerably higher than our own 5-year forecast, updated earlier this year,” said Annex Research analyst Bob Djurdjevic. “But the company’s recent track record of meeting or exceeding expectations is also impressive. So Palmisano and his team have credibility in their corner.”

IBM has over the past decade shifted its focus to high-margin software and services from commoditized hardware. It bought PwC Consulting from PricewaterhouseCoopers in 2002, and sold its personal computer business to Lenovo Group Ltd <0992.HK> in 2005.

IBM has also been increasing investment in new technology services, including “business analytics” which helps clients plot trends, predict risk and cut costs by combining

“More and more of our profits will come from these higher profit segments,” Palmisano said.

NEW YORK, May 7 (Reuters) – Cisco Systems Inc <CSCO.O> is expected to report a 25 percent rise in quarterly revenue and give an upbeat outlook next week but worries of troubles in Europe may prevent the shares from rallying much.

The results are likely to show a recovering U.S. economy and increasing Internet traffic encouraging companies to buy more network equipment from Cisco. But analysts said jitters about Europe’s economy will weigh on investor sentiment.

“Clearly, April was a good quarter for Cisco. The numbers will be good. But you have to pay attention to what’s happening in the global economy,” said Broadpoint AmTech analyst Mark McKechnie.

“Europe is 20 percent of Cisco’s business, and you have to imagine that the business opportunity there is different from four weeks ago when the Greek troubles started.”

The euro this week hit a 14-month low against the dollar on concerns that Greece’s debt problems could carry over to other Western European countries like Portugal, Italy and Spain and hurt growth in the overall European region.

The Dow on Thursday suffered its biggest ever intraday drop as a suspected trading glitch and euro debt fears threw the market into chaos. Shares of Cisco, one of the most important barometers for the tech industry, have fallen around 8 percent this week.

Cisco’s results for its fiscal third quarter ended May 1 will not have been affected by troubles in Europe. Analysts expect profit excluding items to rise to about 38 cents a share from 30 cents a year earlier, on revenue growth of 25 percent to $10.23 billon, according to Thomson Reuters I/B/E/S.

NEW YORK (Reuters) – Brocade Communications Systems Inc’s <BRCD.O> new executive sees no pressing need for the network equipment maker to be acquired, despite the market’s speculation it wanted to be bought.

John McHugh was hired in March as chief marketing officer in charge of global marketing and strategic alliances and analysts have cited his M&A experience as an asset for the company in a possible sale to a big technology vendor.

While announcing a new technology venture with EMC Corp <EMC.N> on Monday, McHugh shrugged off speculation he was brought in to help sell the company, which competes with industry leader Cisco Systems Inc <CSCO.O>.

The company, which bought Foundry Networks in 2008, was already diversified enough to meet customers’ needs, he said. The combined company sells fiber channel backbones switches and other network equipment that direct Internet traffic.

“It doesn’t require at this point an acquisition in either direction. We really believe we have all the assets we need right now to be able to deliver industry leading solutions for customers,” he told Reuters in an interview.

McHugh oversaw Nortel Networks’ divestiture of the enterprise network solutions business. He also worked at Hewlett-Packard Co <HPQ.N> and experienced M&A deals at private equity firm Silver Lake Partners.

But deal making was not a priority at Brocade for now.

NEW YORK, April 28 (Reuters) – Akamai Technologies Inc <AKAM.O> posted quarterly results and an outlook that beat expectations as more businesses sought its help in delivering online entertainment, soothing concerns about growing price competition.

The Internet content delivery company, which specializes in navigating less-congested routes over the Web for online video and shopping services, said on Wednesday its first-quarter sales rose 14 percent from a year earlier to $240 million.

Analysts had expected $230 million, according to Thomson Reuters I/B/E/S. Its outlook for second-quarter revenue of $236 million to $246 million also exceeded Wall Street’s forecast of $232 million.

Chief Executive Paul Sagan said one of the key drivers for the quarter was the strong demand for high-definition, online video services.

“HD was a piece of the pleasant surprise and will be a big driver for us over the years,” he said.

Net profit rose to $40.9 million, or 22 cents a share, from $37.1 million, or 20 cents a share, a year earlier. Earnings excluding items was 35 cents a share, compared with the average Street forecast of 31 cents.

Akamai shares rose $2.35, around 7 percent, to $35.53 in extended trade, after closing down 1.5 percent at $33.18 on Nasdaq.

NEW YORK, April 27 (Reuters) – Tellabs Inc’s <TLAB.O> results and sales outlook beat expectations as phone companies bought more network equipment to handle increasing wireless Internet traffic, sending the stock up more than 10 percent.

Chief Executive Rob Pullen said phone companies were spending more on their wireless networks, although they were keeping overall budgets for 2010 unchanged by cutting back on wireline upgrades. That reflects the popularity of smartphones and vindicates Tellabs’ focus on wireless networks, he said.

“Two years ago we focused on how we’re going to help the mobile backhaul, the mobile Internet. Our strategy is paying off,” he told Reuters in an interview.

Tellabs, a supplier to major U.S. carriers such as AT&T Inc <T.N>, Verizon Communications Inc <VZ.N> and Sprint Nextel Corp <S.N>, said on Tuesday its first-quarter revenue rose 5 percent to $380 million. That exceeded Wall Street’s average forecast of around $371 million according to Thomson Reuters I/B/E/S.

Tellabs also forecast second-quarter revenue to rise 10 percent to 12 percent sequentially, which would be about $418 million to $426 million — well above the average analyst forecast of $388 million.

The increase in mobile Internet use prompted networking equipment leader Cisco Systems Inc <CSCO.O> to buy Tellabs competitor Starent Networks for $2.9 billion late last year.

But in a sign that investors saw Tellabs as well positioned in the wireless networking market, shares of Cisco and other equipment makers like Juniper Networks Inc <JNPR.N> and Alcatel-Lucent <ALUA.PA> fell in early trade, while Tellabs soared as much as 11.4 percent to $9.16, their highest level on the Nasdaq since November 2007.

NEW YORK (Reuters) – AT&T Inc’s <T.N earnings beat expectations on the back of strong iPhone sales, but questions over how much longer it would remain the exclusive U.S. carrier for Apple Inc <AAPL.O> dampened investor enthusiasm.

AT&T activated 2.7 million iPhones in the first quarter, with one third of those for customers new to the carrier. It added 1.9 million wireless subscribers overall, bringing its total to 87 million.

But while the iPhone helped drive profits in the quarter, many analysts saw AT&T’s dependency on the smartphone as a growing vulnerability, particularly since speculation has been rampant that Apple may eventually sell iPhones through AT&T rival Verizon Wireless.

“The profit beat versus consensus was really driven by the wireless margin,” said Stifel Nicolaus & Company analyst Christopher King. “It does not bode well for if and when they lose exclusivity.”

Shares of AT&T fell 1.4 percent in early trade on Wednesday to $26.28.

AT&T, the biggest U.S. phone company by revenue, said its first quarter profit fell to $2.5 billion from $3.1 billion a year earlier, due in part to a previously disclosed $1 billion non-cash charge related to U.S. healthcare reform.

Excluding that charge, profit would have been 59 cents a share, higher than the average analyst estimate of 54 cents a share, according to Thomson Reuters I/B/E/S.

NEW YORK (Reuters) – Juniper Networks Inc’s <JNPR.N> outlook disappointed investors expecting a stronger confirmation of a tech recovery and its shares dropped 7.5 percent after-hours on Tuesday despite strong quarterly results.

Juniper, which competes with network equipment leader Cisco Systems Inc <CSCO.O> in selling routers and switches that help direct Internet traffic, forecast second-quarter revenue of $950 million, plus or minus $20 million, compared with an average Street forecast of $945 million.

It also forecast earnings excluding special items of 27 cents to 29 cents a share, straddling Wall Street’s average forecast of 28 cents, according to Thomson Reuters I/B/E/S.

“It was a decent set of numbers. And the outlook was clearly in line with expectations. But people were hoping for a ‘beat and guide up’,” said Jefferies & Company analyst William Choi.

Juniper shares had risen 20 percent over the past 3 months as a stronger economy and growing Web traffic prompted phone companies to upgrade their networks.

Companies like AT&T Inc <T.N> and Verizon Communications Inc <VZ.N> are beginning to spend more to support increasing Internet traffic, particularly those from smartphones, after holding back last year in the wake of the financial crisis.

Chief Executive Kevin Johnson said he was indeed seeing signs of stronger spending among carriers, Juniper’s key customer segment.