Feeds

Cisco has encouraging quarter

But Chambers still cautious

  • alert
  • submit to reddit

Build a business case: developing custom apps

ComputerWire: IT Industry Intelligence

Cisco Systems Inc yesterday delivered a fiscal third quarter that saw its first year-on-year quarterly revenue rise for over 12 months, but CEO John Chambers was still wary of predicting an immediate upturn.

For the three months to April 27, the company reported net income of $729m, compared to a $2.7bn loss a year ago, on revenue up 2% at $4.82bn. Earnings per share, at $0.10, beat the First Call analysts' consensus estimates, even though the top line was about $50m less than the same analysts expected.

For the year to date, net income was $1.12bn, compared to a loss of $1.02bn a year earlier, on revenue that was down 21% at $14.08bn.

"The third [fiscal] quarter has often been our seasonally slow quarter in terms of orders", said CEO John Chambers. "Literally, what a difference a year makes... It was nice to see revenue grow year over year, even if it was just a small amount."

In a statement, he said: "Last year was a classic downturn. We took the critical steps to position ourselves for the upturn, and we are beginning to see the very positive results."

Of the service provider market, Chambers said: "Until visibility into their own profit and growth returns, they will continue to spend very cautiously." He said that there is "not enough data" to predict a spending turnaround in the overall market, though he did refer, during a conference call yesterday to "the inevitable upturn".

"Today's economy is truly a show-me economy," he said, explaining that IT managers want to see improvements in their own revenue before buying. "It's unclear if our growth is down to market share gain, or of an upturn in the economy." As such, Cisco did not provide estimates for its fiscal 2003, which begins next quarter.

Chambers admitted that Cisco saw slumping sales in three key areas - high-end routers, optical networks and DSLAMs. The mix of revenue was roughly the same on last year, with the Access business, Services business and 'Other' business flat at 5%, 17% and 8% of revenues respectively. The mix between sales of routers and switches changed 1%, with routers down to 30%, switches up to 40%.

© ComputerWire. All rights reserved.

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.