Cisco Posts Better-than-expected Results

May 13, 2010
Profits rose 62.6% in the third quarter to $2.2 billion.

Networking giant Cisco on May 13 posted better-than-expected quarterly results and said companies around the world were spending again following the global economic downturn.

The San Jose, California-based manufacturer of switches and routers for the Internet and wireless networks said net profit rose 62.6% in the third quarter to $2.2 billion.

Revenue increased by 27% in the quarter ended May 1 to $10.4 billion, better than the 23% to 26% rise that Cisco forecast three months ago.

"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," chief executive John Chambers said. "We emerge from this downturn gaining market share (and) a larger share of the total wallet spend of our customers."

In a conference call with analysts, Chambers said he expected Cisco to continue to add jobs this year after already adding 1,000 in the third quarter.

"You'll see our expenses grow at a faster rate," he said. "We believe the recovery is accelerating, but no knows how strong it will be or for how long it will last."

Cisco said it expected revenue growth of between 25% and 28% during the current quarter with the recent acquisition of Norwegian videoconferencing company Tandberg contributing some $200 million in revenue.

Copyright Agence France-Presse, 2010

Popular Sponsored Recommendations

7 Crucial Steps to Improve Your OT Security

Oct. 23, 2023
Enhance OT security in manufacturing and production. Uncover the crucial steps to safeguard your operational technology. Protect against evolving threats and bridge the IT-OT ...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

The Guide to Balancing Citizen Development and Governance in Manufacturing Operations

Sept. 19, 2023
Platforms with no-code capabilities provide a competitive advantage for manufacturers responding to rapidly changing disruptions and demands. This guide helps manufacturers maintain...

Guide to Turning Product Data into Profitable Content and Experiences

Sept. 11, 2023
Businesses can lose up to 9.5% of their annual revenue due to bad digital experiences. This guide highlights the need for enriched product content to deliver profitable content...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!