Cisco Says 1Q Showing Indicates Signs Of Recovery - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

10:15 AM

Cisco Says 1Q Showing Indicates Signs Of Recovery

The networking vendor's profit nearly doubled from a year earlier, while sales climbed more than 5%.

Cisco Systems says its first-quarter earnings indicate surprisingly strong growth in core businesses as well as a potentially burgeoning economic recovery.

"We're starting to see the first glimmers of an overall improvement in the economy," says Charlie Giancarlo, senior VP and general manager of switching, voice, and carrier systems. Cisco's revenue growth "didn't just come from one segment of the business, it was fairly broad based."

For the quarter ended Oct. 25, Cisco posted a net profit of $1.09 billion, or 15 cents per share, up from $618 million, or 8 cents per share, in the same quarter of 2003. Revenue were $5.1 billion, up 5.3% from $4.8 billion a year ago. It's the first time in years in which Cisco's sales have passed the $5 million mark. "We've been waiting for about two and a half years to do this," says Giancarlo.

Sales of Cisco's core business of routers and switches were particularly robust, with "very strong" growth in sales to service providers, according to Giancarlo.

In a conference call Wednesday, CEO John Chambers said the company expects revenue to continue to rise in the second quarter, coming in around $5.2 billion. Chambers remained cautiously upbeat about whether Cisco sees the beginning of an economic recovery, but did indicate that the business executives he speaks to feel increasingly optimistic.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Study: Cloud Migration Gaining Momentum
John Edwards, Technology Journalist & Author,  6/22/2020
White Papers
Register for InformationWeek Newsletters
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Flash Poll