Tuesday, May 11, 2010

Cisco's Quarterly Revenues Reach $10.3 Billion, up 27% YoY

Cisco reported quarterly revenue of $10.4 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.37 per share, and non-GAAP net income of $2.5 billion or $0.42 per share.

At the end of its third quarter of fiscal 2010, Cisco had $39.1 billion of cash and cash equivalents, compared with $35.0 billion at the end of fiscal 2009, and compared with $39.6 billion at the end of the second quarter of fiscal 2010.

"Our financial results were outstanding, achieving record level revenue and earnings per share results. We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began. We emerge from this downturn gaining market share, a larger share of the total wallet spend of our customers, dramatically improved customer relations as a trusted technology and business partner, and having next-generation products in almost every product category. It is clear that our game plan for how to handle economic downturns is hitting on all cylinders," said John Chambers, chairman and CEO of Cisco.

Some highlights for the quarter:

  • The upsurge was seen across Cisco's four largest geographic sales regions.

  • The U.S. continued its strong pace; all customer segments growing in excess of 25% year over year

  • Sales of the Nexus product family, ASR product family, and new fixed switching platforms were at the high end of expectations.

  • Cisco sees key opportunities in the data center. The company estimates a total addressable market of $85 billion in the data center by 2015. Cisco's UCS product line experienced a 168% sequential rise in revenue during the most recent quarter. UCS now has an annual run rate of $200 million. There are now over 900 UCS customers and the majority are proving to be repeat customers.

  • In the telepresence space, Cisco said the integration with TANDBERG is going smoothly. Cisco's own Telepresence products are currently on a $175 million annual run rate.

  • Cisco said its Starent acquisition was a tipping point in carrier architecture and that the merger has gone very smoothly. Growth rates over the next year are forecast to be in the 20% rate.

See also