However, that 30 cents per-share performance still represented a decline of over 20% compared to last year's bottom line. Plus, the top line went down by almost 17%. And then we come to cash flow. Last year at this time, Cisco generated $3 billion from operations. This time around, the company netted only $2 billion from operations.

So, things are still weak for the networking entity. But as I said, investors love to see a company go beyond expectations. They'll often ignore other less-than-pleasing news. In the after-hours session following the report, shares of Cisco rose 2.5% to better than $20 per share.

There's clearly some belief out there that things are getting better and that a company like Cisco may be poised to benefit from an improving macro scenario. Cisco CEO John Chambers, in fact, said that his customer base might be experiencing more stability.

Maybe they are. Then again, maybe it's too soon to tell. Either way, for those who have been looking to start a position in Cisco, I'd say you should be careful. Wait for the inevitable drop in the share price so you can gain a better entry point. And use a stop if you're trading. Cisco isn't my favorite tech stock out there, but I will say that, if you genuinely believe that the economic climate is on the verge of vast improvement, then this stock might not be a bad way to play the recovery.

Disclosure: I don't own any company mentioned; positions can change without notice.