Menu
Cisco hits record quarterly revenue

Cisco hits record quarterly revenue

Profit increases faster than revenue

Crediting a strategy that exploits users' move to cloud computing, Cisco Systems on Thursday reported record net sales of $US11.6 billion for the quarter ending April 28, up 6.6 per cent from the year-earlier period.

It was the second quarter in a row of record quarterly revenue. Net income was $US2.2 billion, or $US0.40 per share, up from $US1.81 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 $US2.5 billion for the quarter, up 13 per cent year-over-year.

Analysts have been upbeat on Cisco recently. Last quarter the company hit its $US1 billion target for its expense-reduction plan, which originally was not set to be attained until the next quarter.

Revenue edged out the $US11.57 billion forecast by analysts surveyed by Thomson Reuters. Excluding certain one-time charges, earnings per share of $US0.48 were slightly higher than analysts' forecast for EPS of $US0.47. In after-market trading immediately after the results were released, Cisco shares ticked up by $US0.07 to $US18.78.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments