Networking player Cisco last night posted a 17pc increase in first quarter sales, hitting US$9.1bn, and has recorded a net profit of US$2.2bn.
Cisco CEO John Chambers said the company’s performance was helped along by the migration to what he describes as the second phase of the internet and the emergence of Web 2.0 technologies.
“Cisco delivered another record quarter based on balanced execution across the company,” said Chambers. “We believe these strong results show that Cisco is well positioned in terms of our vision, differentiated strategy and execution and our ability to act upon key market transitions.
“We believe the migration to the second phase of the internet and the proliferation of networked Web 2.0 technologies will help drive dramatic gains in productivity and innovation across all industries.
“If this market transition continues to unfold as we expect, it has the potential to power Cisco’s and the industry’s growth for many years to come,” Chambers added.
Cash flows from operations were US$3.1bn for the first quarter, compared with US$2.3bn last year.
Cisco had US$24.7bn in cash and investments to bank on at the end of the first quarter.
“We are very pleased with Cisco’s financial results, delivering another quarter of record revenue, net income and earnings per share, as well as our highest cash flow from operations to date of US$3.1bn,” said Dennis Powell, chief financial officer, Cisco.
“This consistency in both top- and bottom-line performance can be attributed to our balanced revenue growth across geographies, products, services and customer segments, while maintaining our traditionally strong gross margins,” Powell said.
By John Kennedy
Buy your tickets now!