06:33 PM

Cisco's Revenue And Profits Grow

Sales and net income for the quarter ended May 1 both rose more than 20%, and the company plans to add 1,000 new hires.

Cisco Systems reported strong growth in quarterly income on Tuesday, crediting a continued rebound in IT spending by American businesses.

For its fiscal third quarter ended May 1, Cisco posted net income of $1.2 billion, or 17 cents per share, up 23% from earnings of $987 million, or 14 cents per share, in the same quarter a year ago. Revenue rose 22%, to $5.62 billion, from $4.62 billion last year.

Sales were strong across the board, said Cisco senior VP Charles Giancarlo, with double-digit growth in all of the company's advanced technology sectors, which include wireless, security, and IP telephony. Even core routing and switching markets were strong, with customers increasing the amount of Gigabit Ethernet hardware in their enterprises, he says. More than 30% of Cisco's sales of modular switch ports are now gigabit-ready.

Cisco had predicted sales growth between 1% and 3% for the quarter, but growth actually topped 4%. For the fourth quarter, the company says to expect growth of 3% to 5%.

During the quarter, Cisco completed the $36 million acquisition of Riverhead Networks Inc. and the $5 million acquisition of Twingo Systems Inc.

In a conference call discussing the results, president and CEO John Chambers said he "continues to be more optimistic than I was going into the last quarter," claiming that Cisco customers "are becoming more optimistic, and starting to spend." Cisco said it plans to add 1,000 sales and engineering positions this year to take advantage of what it sees as a continued economic recovery. The company currently employs about 34,000 people.

Comment  | 
Print  | 
More Insights
2014 Next-Gen WAN Survey
2014 Next-Gen WAN Survey
While 68% say demand for WAN bandwidth will increase, just 15% are in the process of bringing new services or more capacity online now. For 26%, cost is the problem. Enter vendors from Aryaka to Cisco to Pertino, all looking to use cloud to transform how IT delivers wide-area connectivity.
Register for InformationWeek Newsletters
White Papers
Current Issue
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of April 19, 2015.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.