A solid forecast from US-based network equipment supplier Cisco for the current quarter has raised hopes on the stock market for a recovery in IT spending.
Cisco shares rose by around 5% in after-hours trading on Wednesday.
Cisco predicted sales of between $13.4 billion and $13.6 billion for the current quarter. Analysts had expected an average of $13.5 billion. Cisco's earnings per share forecast was also slightly above expectations.
Chief executive Chuck Robbins is working on expanding Cisco's network technology business with software and services. In Cisco's third financial quarter, which ended at the end of April, sales fell by 13% year-on-year to $12.7 billion.
Profits fell from $3.2 billion a year earlier to just under $1.9 billion, the company announced after the US stock exchange closed on Wednesday.