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Cisco: Storage Stars in Earnings

Storage starred in Cisco's robust earnings report last night. (See Cisco Reports Q2.)

"Storage led the way in advanced technologies, with revenues growing over 45 percent year over year," said Cisco CEO John Chambers on last night's call.

That figure contrasts with Cisco's mid-teens storage growth reported last quarter. (See Cisco's Storage Slows.)

Still, at least one analyst doesn't read too much into the storage growth figures. "We estimate Cisco's storage business reflects ~$115M in total revenue, which would imply a sequential decline," notes Aaron Rakers of AG Edwards in a note to clients today. Rakers thinks Cisco's storage figures hint that Brocade and McData may have been able to retain customers up to their merger.

It's tough to tell. While Cisco notoriously won't break out specific storage figures, Chambers was clear that storage accounted for the fastest growth in the company's most profitable division, the so-called "advanced technologies" group, which includes areas the company has earmarked as potential billion-dollar businesses. Other group members include wireless, home networking, security, and "unified communications," or enterprise telephony.

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