Published in News
Cisco beats expectations
Posts revenue growth of 10.4 percent
Cisco Systems Inc. announced quarterly results that exceeded analyst expectations, but indicated that it was still giving a cautious business outlook. Cisco is the largest U.S. manufacturer of routers and switches that direct Web traffic and said that its quarterly results were due to rising Internet traffic demand for this type of network equipment.
Cisco’s Chief Executive, John Chambers, who is considered a U.S. technology industry trend reader, stated that market conditions are still quite challenging and that a U.S. market recovery is not yet in sight.
Cisco reported earnings before items for the quarter that ended April 26, 2008 rose to $2.3 billion from $2.1 billion compared to the same period one year ago. Robert W. Baird Analyst Kenneth Muth said, “Usually Cisco beats by a penny. They beat by two pennies. That was better than the norm."
Quarterly net profit fell by one cent a share to 29 cents/share due to acquisition-related expenses, but revenue grew by 10.4 percent to $9.8 billion, compared to its forecast of 10 percent growth. Cisco’s flagship high-end router, the CRS-1 has helped to spur strong sales for the company and has assured some analysts of continued growth for Cisco.