June 2009 -- The slow economy drove profit down 24% for networking provider Cisco Systems Inc. during its third quarter, which ended April 25. The company posted net income of $1.3 billion, or 23 cents per share, compared with net income of $1.8 billion, or 30 cents a share, in the year-earlier period.
"Cisco delivered solid financial performance despite a challenging global economy and period of evolving market dynamics," said John Chambers, chairman and CEO, in a May 6 statement. "These results demonstrate our ability to drive operational excellence and manage profitability across varying economic cycles. We will use this period of market transition to align and optimize resources, make strategic investments, move into market adjacencies and enhance relationships with our customers."
During the quarter, the company collaborated with Mexico to develop plans for education, digital government and rural connectivity. It also announced an initiative to increase productivity and foster innovation in Korea as part of its global intelligent urbanization initiative, which aims to help cities around the world use the network as the platform for integrated city management. In the United States, the company worked with Miami Mayor Manny Diaz in collaboration with Florida Power and Light, GE and Silver Spring Networks to launch a model "smart grid" electricity system.
