Feeds

Cisco books back in the black

Chambers hails 'second phase of economic recovery'

Boost IT visibility and business value

Cisco System's quarterly profit surged 23 per cent as renewed interest in corporate infrastructure upgrades saw the network giant post its first sales increase in a year.

Chief executive John Chambers heralded the financial results as a "clear indication" that we're entering "the second phase of the economic recovery."

In addition to Cisco's dominance in switching and routers making it viewed as a technology industry bellwether, Chambers' often-sweeping statements make the company's quarterly reports somewhat of a state of the union address for business spending.

"In our opinion, based upon our business momentum and prior economic recoveries, this would indicate that the recovery from a capital spending perspective is very strong and moving into the second phase of a reasonably-balanced, across-the-board growth," he said in an analyst conference call on Wednesday.

Revenue in Cisco's second quarter 2010, which ended January 23, was $9.8bn, an 8 per cent increase from $9.1bn in the same period last year.

Adjusted net income for Q2 was $1.9bn, up 23.2 per cent from $1.5bn year-over-year.

The company exited the quarter with $39.bn total cash and investments and $2.5bn in operating cash flow.

Chambers also said the company expects to hire 2,000 to 3,000 people in the next several quarters - another sign of his confidence in an economic recovery. A year ago, the company was reporting sliding sales and profits, in addition to plans for job cuts of between 1,500 and 2,000 people company-wide.

Cisco expects to see revenue growth of 23 per cent to 26 per cent over a year ago by the end of its current fiscal third quarter. ®

Maximizing your infrastructure through virtualization

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
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
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
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.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.