Feeds

Cisco's Q4 sails over US economic slump

Networker's net rises 4.4%

Bridging the IT gap between rising business demands and ageing tools

"Despite" is clearly the golden word for financial reports of major US tech corporations.

If a company is massive enough, it's got tendrils wrapped outside the sluggish domestic market. Investors demand growth — and desired numbers presently lie abroad in emerging markets such as China and India.

Cisco, often used as a bellwether for the American tech sector, has been offering gloomy forecasts on the economy for some time now. Despite this, its margins have held pretty comfortably thanks to its expanding reach.

It's been a pretty common theme for many big names in IT these past few quarters.

The networking giant's fourth quarter sales increased 9.9 per cent year-over-year to 10.4bn. Net income advanced to $2bn from $1.9bn in Q4 2007.

CEO John Chambers noted the quarter was a record-breaker for the company, as it was the first time it hit the $10bn mark for quarterly sales.

"Today's strong results demonstrate the company's ability to execute," said CEO John Chambers in a statement. "The market is clearly in transition, and we will use this time as an opportunity to expand our share of customer spend and to aggressively move into market adjacencies."

For the full year, Cisco's net sales were $39.5bn, up 13.2 per cent from $34.9bn in 2007. Net income rose 9.8 per cent to $8.1bn.

The numbers were on the short side of Cisco's long-term forecast for 12 per cent to 17 per cent growth. While Chambers said Cisco saw a rebound in enterprise IT spending in the US, he expected the current economic challenges to remain "for the next few quarters."

Cisco said its areas of solid momentum were emerging markets — and also Japan, where service providers are ramping up next-generation infrastructures.

Broken down by region: China order growth was 30 per cent year-over-year, orders in India were up 20 per cent, Mexico and Russia (we're not sure why they're put together either) grew 40 percent, and Brazil orders grew 30 per cent.

Meanwhile in the European market, order growth was about 11 per cent year-over-year. US and Canada order growth was 7 per cent.

Chambers warned that the US market still requires monitoring going further, and said there was a possibility of the challenges spreading to other geographies.

By products: router revenues for the year grew by 14 per cent, switches by 7 per cent, and networking services grew 36 per cent.

The future is now

Cisco estimates its fiscal first quarter 2009 revenue will fall in the range of $10.21bn to $10.4bn.

Chief financial officer Frank Calderoni said the company wasn't comfortable offering revenue guidance for the full year due to the unpredictability of current economic conditions. However, Cisco doesn't have a problem predicting the first half of fiscal 2009. The company expects Q2 2009 revenue growth in the range of 8.5 per cent year-over-year. ®

Application security programs and practises

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
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
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
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.