Cisco quarterly profits jump 44% to $3.1bn

Network company Cisco has reported $3.1bn profits for its last quarter, up 44% compared with the same period the year before

Network company Cisco has reported profits for the last quarter ending 26 January 2013 of $3.1bn, up 44% compared with the same period the year before.

Sales were also up 5% to $12.1bn and earnings per share were up 47.5% to 40c per share in the wake of a cost-cutting restructuring programme.

Cisco – which sells routers, switches, software and services to private enterprises and governments around the world – has also benefited from an increase in technology spending.

Cisco CEO John Chambers said customer demand had helped deliver record revenue for the eighth quarter in a row, despite a challenging economic environment.

"We are making solid progress towards our goal of becoming the number one IT company in the world,” Chambers said.

Chambers said that, as new markets grow and are created – such as the internet of everything – it was easy to see how the intelligent network lies at the centre of the future.

Last year, Chambers initiated a restructuring programme at Cisco with the aim of cutting expenses by $1bn.

During the quarter, Cisco announced and completed the acquisition of four companies:

Cisco also announced the investment of $6m in the venture capital fund Monashees Capital, a Brazilian VC focused on Internet companies and online education; and Belkin announced its intent to acquire Cisco's Linksys product line.

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