Feeds

Chambers hails 'solid' Cisco quarter

He would, wouldn't he?

The Essential Guide to IT Transformation

Cisco has turned in another solid quarter in Q2, CEO John Chambers says. He is "pleased with the solid revenue and earnings per share results ... but also especially pleased with our strong order momentum".

In the three months to January 28, the networking equipment giant had sales of $6.6bn, advancing 9.3 per cent year on year. Q2 net income was down a little at $1.375bn (Q2 FY05: $1.4bn). The fall can be attributed to a couple of hundred million dollars in expensed stock options.

Cisco ended the quarter with cash and cash equivalents and investments of $15bn, compared with $16.1bn at the end of the previous quarter. But the company remains a cash generating machine: it purchased $748m worth of shares in Q2.

In toto, Cisco has spent $31.4bn on buying and torching shares. Nice for shareholders, and, as the amount it spends on stock options shows, nice for employees. But nice for customers? Are we alone in thinking that Cisco’s gross margins are a little too gross? ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
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
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
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
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.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.