SAN FRANCISCO — Cisco Systems reported surprisingly strong results for its second quarter despite concerns about weak demand in some areas.
Cisco, the San Jose, Calif., networking giant, said that net income in the second quarter rose 44 percent to $3.1 billion, or 59 cents a share, from the year-ago quarter.
The company said revenue climbed 5 percent, to $12.1 billion.
Excluding certain items, such as tax gains and stock-compensation expenses, Cisco had earnings of 51 cents per share.
The results exceeded the expectations of Wall Street analysts, who had projected earnings of 48 cents a share and revenue of $12.06 billion, according to a survey of analysts by Thomson Reuters.
“Cisco delivered record earnings,” John Chambers, Cisco’s chief executive officer, said in a release accompanying the results. “We are making solid progress towards our goal of becoming the number-one information technology company in the world.”
Cisco has traditionally met, or slightly exceeded, Wall Street’s earnings expectations.
Over the past two years, Cisco has reorganized, paring down much of its consumer business and refocusing on new technology initiatives, such as cloud computing.
In December, Mr. Chambers announced plans to move Cisco from just selling gear that routes Internet data into the development of highly networked systems of sensors and data analysis machines. That plan, which involves working closely with large companies and governments, remains in its early stages.
Sales of regular networking equipment to government remains a key part of Cisco’s business. Analysts had been concerned that poor demand from governments, along with economic jitters in Europe, could hurt Cisco’s performance.
Cisco Tops Expectations With Rise in Profit of 44%
This article
Cisco Tops Expectations With Rise in Profit of 44%
can be opened in url
http://refreshnewster.blogspot.com/2013/02/cisco-tops-expectations-with-rise-in.html
Cisco Tops Expectations With Rise in Profit of 44%
