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Rise in Cisco earnings creates 1,000 jobs

Cisco Systems will add 1,000 sales and engineering jobs by the end of the year after posting successful third-quarter earnings numbers which included a $1bn (£566m) increase in sales and net income of $1.2bn.

The hiring plans are being seen as good news in the high-tech sector, which has been hit hard since 2000, when the stock market bubble began to burst, taking a huge amount of tech industry enthusiasm with it. 

Net sales for Cisco's financial third quarter, which ended 1 May, totalled $5.6bn, a 21.7% increase from a year ago, when net sales totalled $4.6bn.

Net income for the third quarter of 2004 on a GAAP basis was $1.2bn, compared with $987m for the third quarter of 2003. Pro forma net income for the third quarter was $1.4bn compared with $1.1bn a year ago. 

"We are pleased to have achieved record earnings per share this quarter - marking our eighth consecutive quarter with pro forma net income exceeding $1bn, and the strongest cash flow from operations in the company's history," said John Chambers, Cisco's president and chief executive officer.

"This momentum was achieved through sequential order growth across all major product categories and solid progress in our advanced technologies including security, wireless Lan and IP telephony." 

Chambers revealed that the company would be hiring 1,000 workers by the end of the year, based on the positive results. 

Spokeswoman Robyn Jenkins-Blum said the new jobs will be in sales and engineering primarily in the US and are a direct result of the company wanting "to meet business needs and growth requirements". 

Todd R Weiss writes for Computerworld


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