Cisco Hits Record Quarterly Revenue
Crediting a strategy that exploits users' move to cloud computing, Cisco Systems on Thursday reported record net sales of US$11.6 billion for the quarter ending April 28, up 6.6 percent from the year-earlier period.
It was the second quarter in a row of record quarterly revenue. Net income was $2.2 billion, or $0.40 per share, up from $1.81 billion in the same quarter last year.
Facing economic uncertainty, Cisco officials have pledged to streamline costs in an effort to improve margins, so that profit will increase faster than sales.
"We are successfully executing against our long-term strategic plan of growing profit faster than revenue, and in a cautious IT spending environment, we continue to outperform our competitors," said John Chambers, Cisco chairman and CEO, in the company's earnings release.
"In a world of clouds, video and mobile device proliferations, the role of the intelligent network has never been greater and our value proposition with our customers is the strongest it has ever been," Chambers said.
Chambers said in a conference call after the release that Cisco's products are either number one or two in their respective market segments. The company's Unified Computing and Services segment grew more than 50 percent year-over-year, Chambers noted, stressing that competitor's services business stayed flat for the most part.
Services revenue was $2.5 billion for the quarter, up 13 percent year-over-year.
Analysts have been upbeat on Cisco recently. Last quarter the company hit its $1 billion target for its expense-reduction plan, which originally was not set to be attained until the next quarter.
Revenue edged out the $11.57 billion forecast by analysts surveyed by Thomson Reuters. Excluding certain one-time charges, earnings per share of $0.48 were slightly higher than analysts' forecast for EPS of $0.47. In after-market trading immediately after the results were released, Cisco shares ticked up by $0.07 to $18.78.