Recovery puts Cisco income up by 63%
By Peter Svensson |
May 14, 2010, Friday
|
Print Edition
Print Edition
CISCO Systems Inc's net income for the latest quarter rose 63 percent from last year, it said on Wednesday, as economic recovery gave customers the confidence to spend on networking gear.
"We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began," CEO John Chamber said.
Cisco said it earned US$2.2 billion, or 37 cents per share, in the fiscal third quarter that ended May 1. That's up from US$1.3 billion, or 23 cents per share, a year ago.
Excluding one-time charges and the cost of stock-based compensation, the world's biggest maker of computer networking equipment earned 42 cents per share.
Revenue rose 27 percent to US$10.4 billion, from US$8.2 billion. That topped Cisco's forecast of US$10 billion to US$10.3 billion.
The San Jose, California, company's revenue has now recovered to the level of late 2008, when the economic downturn started in earnest. Cisco saw a steep drop in sales after that.
The sharp revenue increase is a reflection of a bounce-back in spending, rather than sustainable growth from Cisco - its long-term target remains year-over-year growth of 12 to 17 percent. Also, this year's quarter was a week longer than last year's which added 4 to 5 percent to revenue.
Chambers said Cisco expects the recovery to continue at the same pace in the current quarter, with revenue up 25 to 28 percent from last year. That's between US$10.7 billion and US$10.9 billion, above the average analyst estimate of US$10.7 billion.
Chambers said the company's servers for data centers are selling well in competition with Hewlett-Packard Co and IBM Corp.
"We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began," CEO John Chamber said.
Cisco said it earned US$2.2 billion, or 37 cents per share, in the fiscal third quarter that ended May 1. That's up from US$1.3 billion, or 23 cents per share, a year ago.
Excluding one-time charges and the cost of stock-based compensation, the world's biggest maker of computer networking equipment earned 42 cents per share.
Revenue rose 27 percent to US$10.4 billion, from US$8.2 billion. That topped Cisco's forecast of US$10 billion to US$10.3 billion.
The San Jose, California, company's revenue has now recovered to the level of late 2008, when the economic downturn started in earnest. Cisco saw a steep drop in sales after that.
The sharp revenue increase is a reflection of a bounce-back in spending, rather than sustainable growth from Cisco - its long-term target remains year-over-year growth of 12 to 17 percent. Also, this year's quarter was a week longer than last year's which added 4 to 5 percent to revenue.
Chambers said Cisco expects the recovery to continue at the same pace in the current quarter, with revenue up 25 to 28 percent from last year. That's between US$10.7 billion and US$10.9 billion, above the average analyst estimate of US$10.7 billion.
Chambers said the company's servers for data centers are selling well in competition with Hewlett-Packard Co and IBM Corp.
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