US computer giant Cisco Systems has seen its profits plunge by almost half during the second quarter as its business continued to be buffeted by the chill winds of the global financial downturn.
Net profits were down by 46.3pc to US$1.1bn, compared to the US$2bn Cisco earned in the same quarter of 2008, with earnings per share taking a battering and ending the quarter down 42.3pc at US$0.19.
Quarterly sales were down 18pc to US $8.5bn.
However, despite the decline in profits and sales, Cisco’s results were largely in line with Wall Street’s expectations.
Cisco chairman and chief executive officer John Chambers expressed confidence in the company’s ability to bounce back, saying there were positive signs evident in both the economy and Cisco’s business during the quarter.
"Cisco delivered very solid quarterly and annual results in a challenging economic environment, as we continued our focus on disciplined execution and our customers’ success," Chambers said.
"We are confident in our strategic position in both existing and 30 adjacent markets. We saw a number of positive signs this quarter in the economy and in our business, especially comparing our sequential quarter-over-quarter order trends. If we continue to see these positive order trends for the next one to two quarters, we believe there is a good chance we will look back and see that the tipping point occurred in our business in Q4."