Cisco delivers profits windfall
Firing on all cylinders in Q1
Cisco posted quarterly results swollen by its Scientific Atlanta acquisition to a gurgling Wall Street yesterday.
Investors sent the networking firm's shares as much as nine per cent higher in after hours trading on the back of a 27.5 per cent GAAP profit hike.
Sales in Q1 2007 hit $8.2bn compared to $6.5bn for the same period last year. These netted Cisco $1.6bn in GAAP income ($0.26 per share). For the same period a year ago, it made $1.3bn ($0.20 per share).
For the first time, results from Cisco's $6.9bn acquisition of Scientific-Atlanta, which went through in February, were added to the pot. The cable TV box firm contributed $584m in new revenues.
CEO John Chambers said: "The balance across our routing, switching and advanced technologies is the best that I've seen in a number of quarters. Routing revenue grew year over year by 13 per cent, switching revenue grew year over year by 15 per cent, and advanced technologies' revenue grew year over year by approximately 23 per cent."
In a conference call, Chambers added: "The balance was amazingly good everywhere. All elements of our vision have evolved as we thought."
Cisco indeed saw growth across its customer base. Service providers in particular couldn't get enough networking gear. The growth in bandwith-hungry services like video-on-demand leaves Cisco sitting pretty. ®