The routing and switching transition seems to be going well, and the company expects these business divisions to contribute meaningfully to top line and bottom line growth in the next few quarters. Cisco expects its overall revenue to grow by 3-5% in the third quarter, in line with market expectations. On the cost side, the company expects non-GAAP gross margins to be 61-62% in Q3, similar to that reported in the first two quarters. Gross margins are impacted by sales growth, product pricing, product mix as well as cost savings.
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