Cisco hits record quarterly revenue

Profit increases faster than revenue

Crediting a strategy that exploits users' move to cloud computing, Cisco Systems on Thursday reported record net sales of $US11.6 billion for the quarter ending April 28, up 6.6 per cent from the year-earlier period.

It was the second quarter in a row of record quarterly revenue. Net income was $US2.2 billion, or $US0.40 per share, up from $US1.81 billion in the same quarter last year.

Facing economic uncertainty, Cisco officials have pledged to streamline costs in an effort to improve margins, so that profit will increase faster than sales.

"We are successfully executing against our long-term strategic plan of growing profit faster than revenue, and in a cautious IT spending environment, we continue to outperform our competitors," said John Chambers, Cisco chairman and CEO, in the company's earnings release.

"In a world of clouds, video and mobile device proliferations, the role of the intelligent network has never been greater and our value proposition with our customers is the strongest it has ever been," Chambers said.

Chambers said in a conference call after the release that Cisco's products are either number one or two in their respective market segments. The company's Unified Computing and Services segment grew more than 50 percent year-over-year, Chambers noted, stressing that competitor's services business stayed flat for the most part.

Services revenue was $US2.5 billion for the quarter, up 13 per cent year-over-year.

Analysts have been upbeat on Cisco recently. Last quarter the company hit its $US1 billion target for its expense-reduction plan, which originally was not set to be attained until the next quarter.

Revenue edged out the $US11.57 billion forecast by analysts surveyed by Thomson Reuters. Excluding certain one-time charges, earnings per share of $US0.48 were slightly higher than analysts' forecast for EPS of $US0.47. In after-market trading immediately after the results were released, Cisco shares ticked up by $US0.07 to $US18.78.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Marc Ferranti

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?