Networking giant Cisco Systems reported a 21.7pc increase in its third quarter revenues on the back of sales of US$5.6bn, compared with US$4.6bn a year ago. With pro forma net income exceeding US$1bn, CEO and president John Chambers described the quarter’s performance as having “the strongest cash flow in the company’s history.”
For the third-quarter, Cisco said it earned US$1.2bn, or 17 cents a share, on revenue of US$5.6bn. During the comparable quarter last year, Cisco earned US$987m, or 14 cents a share, on sales of US$4.62bn.
In February, Cisco predicted sales between US$5.4bn and US$5.56bn and gross margins of 67 to 69pc. Actual, overall gross margins were 68.8pc compared with 68.5pc in the second quarter.
Cisco recorded record cash flow levels of US$2.4bn, up from US$1.7bn in the second quarter and US$1.3bn in the third quarter last year.
“We are pleased to have achieved record earnings per share this quarter-marking our eighth consecutive quarter with pro forma net income exceeding US$1 billion, and the strongest cash flow from operations in the company’s history,” said John Chambers, president and CEO, Cisco.
“This momentum was achieved through sequential order growth across all major product categories and solid progress in our advanced technologies including security, wireless LAN and IP telephony.”
Chambers continued: “Equally important has been our continuing strength in internal innovation, our ability to form successful, mutually beneficial partnerships, and our effective integration of acquisitions to accelerate growth into existing and new markets.”
By John Kennedy