Demand from government and enterprises for its network equipment has pushed Cisco Systems Inc’s revenue and earnings past analysts’ expectations.
Excluding some costs, profit climbed to 43 cents a share in the fiscal first quarter, which ended 29 October, the company said. Analysts, on average, had predicted 39 cents, according to Bloomberg data.
Cisco, the world’s biggest networking equipment maker, projected a 7-8pc increase in sales in the current quarter, which translates to US$11.13bn to US$11.2bn in revenue – matching or slightly ahead of the US$11.14bn expected, on average.
First-quarter net income decreased to US$1.78bn, or 33 cents a share, from US$1.93bn, or 34 cents, a year earlier.
“We delivered a solid quarter,” said John Chambers, Cisco chairman and CEO. “We’ve completed the majority of our restructuring and have organised Cisco to successfully execute against our strategy of providing intelligent networks, architectures and integrated products that solve customers’ business problems.
“Even in times of limited capital spending, intelligent networks are being deployed to drive new business, revenue and consumption models, enable new customer and employee experiences, and drive efficiencies,” Chambers added.
“Cisco’s leadership in networking, video, collaboration and cloud, offered together in an integrated architectural approach, uniquely positions Cisco as a strategic business partner.”