Cisco fighting fit again after profits double

Cisco's painful restructuring programme looks to be paying off with CEO John Chambers going as far as to ignite talk about acquisitions in the coming months.

John Chambers standing.jpgCisco's painful restructuring programme looks to be paying off with CEO John Chambers going as far as to ignite talk about acquisitions in the coming months.

The networking sector bellwether breezed cheerfully past previously announced sales targets in its second quarter, and nearly doubled its profits.

Chambers again used the firm's quarterly results call to lay into rivals such as Juniper, which recently disappointed investors.

"We are moving ahead of our competitors and peers. You can see this in our market share gains, our reported results compared to others," said Chambers.

"This leads us to believe that the changes we have already made in our business positions us well given the uncertainties in the macroeconomic environment," he added.

Chambers talked his usual spiel around anticipating and capturing major industry transitions, such as the evolution of the datacentre from "bare metal to cloud".

"We started on this over six years ago and it's our ability to evolve this where we are today that sets us apart. This innovation, combining the server products with our top-of-rack capability, our storage strategy and partnerships, such as VCE with VMware and EMC, has allowed us to set the pace for the entire industry," he said.

Turning to the matter of acquisitions, Chamebrs said that the vendor had curtailed its M&A activity over the past 12 months as it sought to find its feet once more.

"With our staff executing well we expect to be more active with acquisitions in the quarters to come," he told analysts.

For its second quarter, the world's largest networking vendor booked sales of $11.5bn (£7.26bn), up 11%.

Total product revenue accounted for $9.1bn of the total, up 11%, with core switching revenues making up $3.6bn. Next generation networks or NGN routing grew to $2.1bn.

Cisco's other key product sets, collaboration, service provider video and data centre, all booked strong growth of 10%, 23% and 88% respectively.

Services sales brought in $2.4bn, again up around 11%, with EMEA booking 15% growth.

GAAP net income rose 47% year-on-year to $2.2bn.

Transcript courtesy: Seeking Alpha

MicroScope+

Content

Find more MicroScope+ content and other member only offers, here.

Read more on Network Infrastructure Solutions and Services

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

ComputerWeekly.com

  • CIO Trends #6: Nordics

    In this e-guide, read how the High North and Baltic Sea collaboration is about to undergo a serious and redefining makeover to ...

  • CIO Trends #6: Middle East

    In this e-guide we look at the role of information technology as the Arabian Gulf commits billions of dollars to building more ...

  • CIO Trends #6: Benelux

    In this e-guide, read about the Netherlands' coalition government's four year plan which includes the term 'cyber' no fewer than ...

SearchITChannel

Close