Laterals: Off Quarter Reports, Seasonal 4Q Guidance

Most of the companies in our sector have just reported results and given their 4Q outlooks. We consider the laterals from Cisco's revenue upside more pertinent to off quarter companies, Aruba and 3Com in particular.

Cisco's WLAN orders improved from down 19% YoY to up 7% YoY, and up 32% sequentially. Management indicated that China enterprise demand is picking up, which should benefit 3Com. Cisco's above seasonal guidance also suggests that those companies that have guided seasonally may see revenue upside. Netgear and Polycom are in this category.