Cisco Sees Growth In Sales - 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.

09:54 AM

Cisco Sees Growth In Sales

Net profits were down due to special charges, but CEO John Chambers is optimistic because the economy is improving.

Cisco Systems says sales surged in its second quarter as business customers increased spending on technology, but quarterly profits fell due to accounting charges.

For its second quarter, which ended Jan. 24, Cisco on Tuesday reported a net profit of $724 million, or 10 cents per share, down from $991 million, or 14 cents per share, in the same period last year. This year's earnings were lower due to a one-time charge of $567 million related to an acquisition, according to the company.

However, sales were up to $5.4 billion from $4.7 billion a year ago. In a conference call, Cisco CEO John Chambers expressed optimism about the improving economy, but said customers have been slow to respond to positive indicators. "I believe for the first time in a very long time that the external elements are continuing to be positive," he said. "But this continues to be balanced by an unusual caution." Chambers forecast that sales would continue to rise, growing as much as 3% for the current quarter.

"I think we're just starting to see the first positive signs of recovery," says Charlie Giancarlo, senior VP and general manager of switching, voice and carrier systems at Cisco. "But we're still waiting to see where the economy's going."

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
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Flash Poll