Cisco beats the Street
Long slow road ahead
Cisco posted income of $332 million on the back of $4.4 billion sales in Q1.
Add in one-time charges for various exceptional items (acquisition costs, inventory gains and investment write-down), actual net loss is $268 million, compared to a net income of $7 million last quarter and $798 million year on year.
Sales were up three per cent from the last quarter, but 32 per cent down year on year from Q1 2000's $6.5 billion. Income improved considerably from last quarter's $163 million, although for the same quarter last year it raked in $1.36 billion, now down nearly 80 per cent.
Even with the drops, the results came in two cents per share above expectations. While the numbers are heavily down from 2000, Cisco is showing a gain for the first time in three quarters. The company forecasts single digits gains for the near future.
Employeeshave reason to smile; CEO John Chambers says he is currently happy with the numbers of Ciscoites scurrying around the offices, after various staff culls were announced earlier in the year.
On the technology side, Cisco expanded its portfolio during the quarter, including a 12404 Internet router, which it claims is the smallest footprint 10-Gigabit router around, alongside a variety of other IP-based products. It also completed the acquisitions of Allegro Systems and AuroraNetics. ®