Cisco exceeds earning expectations


Cisco exceeds earning expectations

Cisco Systems reported a 2% increase in revenue for its third fiscal quarter and saw its pro forma earnings per share nearly triple compared with the same quarter last year.

Net sales for the third quarter ending 27 April were $4.82bn (£3.3bn), compared with $4.73bn in the third quarter of 2001, the company said.

Pro forma net income, excluding charges for acquisitions, payroll tax and certain one-off charges, was $838m (£573m) or 11 cents per share, compared with net income of $230m or three cents per share for the third quarter 2001.

A consensus of analysts expected Cisco to post pro forma earnings of nine cents per share on revenue of $4.87bn (£3.33bn), according to Thomson Financial/First Call.

Cisco chief executive officer John Chambers said because Cisco gained market share during the quarter, Cisco's year-on-year growth could not be used as evidence of an overall market rebound.

"We can't tell if our growth is due to market share gains or a turnaround," he added.

In results based on generally accepted accounting principles (GAAP), the company reported net income of $729m (£499m) or ten cents per share, compared with a net loss of $2.7bn or 37 cents per share for the comparable quarter last year.

Looking ahead to the fourth quarter, analysts expect the company to earn 10 cents per share on revenue of $5bn (£3.4bn), according to Thomson Financial/First Call.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy