Feeds

Cisco books back in the black

Chambers hails 'second phase of economic recovery'

Providing a secure and efficient Helpdesk

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.