Cisco Profits Are Up 29% - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure
News
11/12/2004
05:55 PM
50%
50%

Cisco Profits Are Up 29%

Market-leading networking vendor Cisco Systems last week reported strong growth in sales and profits for the first quarter ended Oct. 30. "It was our sixth quarter of sequential growth, and we had reasonable balance across all of our markets," CEO John Chambers told financial analysts in a conference call.

Sales of advanced technologies such as IP telephony, home networking, and wireless grew by more than 50% year over year, and the company also reported strong growth in sales to telecom service providers.

Cisco's net income was up 29% from a year ago to $1.4 billion. Net sales were $6.0 billion for the quarter, compared with $5.1 billion a year earlier.

After talking recently to 50 CIOs, Chambers said he expects them to continue to invest in IT over the long term, with short-term ups and downs based on confidence in the economy. He told analysts that business-technology managers will keep spending on IT to simplify business operations and improve productivity.

Sales of products to the enterprise and commercial markets grew in the midteens on an annual basis, and executives expect that to continue as a series of new products introduced this year, including a high-end router called CRS-1, gain acceptance. "It takes some tire kicking before a product of this magnitude takes hold," says chief technology officer Charles Giancarlo. The buying cycle for a product like CRS, which 16 customers are testing, can take a year to 18 months, he says.

Cisco reported strong sales for its IP PBX, with orders up 50% year over year. It also shipped 500,000 IP phones in the quarter. "According to analyst reports, we are No. 3 or No. 4 in the world in total PBX shipments," Giancarlo says. "We were zero five years ago."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Commentary
New Storage Trends Promise to Help Enterprises Handle a Data Avalanche
John Edwards, Technology Journalist & Author,  4/1/2021
Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
Commentary
How to Submit a Column to InformationWeek
InformationWeek Staff 4/9/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll