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NEW YORK (AP) -- Cisco Systems Inc. reports earnings for its fiscal first quarter, which ended in October, on Wednesday. The following is a summary of key developments and analyst opinion related to the period. OVERVIEW: Cisco, the world's largest networking gear maker, is reaping the benefits of equipment upgrades by Internet service providers and businesses looking to handle soaring demand for more bandwidth -- largely to handle online video. In October, the company said it plans to buy Navini Networks Inc. for $330 million. Cisco expects Navini's WiMax technology to build Internet networks in emerging markets with little or no Web infrastructure. WiMax is similar to the WiFi technology used to provide high-speed Internet access in coffee shops and airports, but it reaches much larger areas. Also in October, authorities raided Cisco's offices in Brazil in an investigation of an alleged import tax evasion scheme. Three of the four Cisco employees detained were released a few days later. The company said it is cooperating with the investigators and is conducting an international review over the allegations. BY THE NUMBERS: Analysts, on average, are expecting a profit of 36 cents per share on sales of $9.54 billion, according to a poll by Thomson Financial. Cisco said in August it expects revenue of $9.45 billion to $9.55 billion. ANALYST TAKE: All signs point to a "solid" first quarter for the company, wrote Thomas Weisel Partner analyst Jason Ader in a note to investors. Spending by service providers, he added, is "still hot" with few signs of weakness among Cisco's business customers. He rates the stock "Overweight." However, Wachovia analyst Aaron Rakers said while the "overall networking space remains healthy," he does not expect the company to beat expectations for the quarter. WHAT'S AHEAD: Cisco said in August Chief Financial Officer Dennis Powell will retire at the end of the second quarter. He will be replaced by Senior Vice President Frank Calderoni, who has been with the company for three years and has worked at QLogic, SanDisk and IBM. In November, Cisco said it plans to spend $16 billion to expand in China over several years, investing in manufacturing, venture capital and education. STOCK PERFORMANCE: Shares of the San Jose, Calif.-based company rose more than 14 percent during the quarter to close at $33.06 at the end of October. In the past 52 weeks, the stock has traded between $23.56 and $33.60.
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