Tuesday, August 10, 2010

Cisco Posts Revenue of $10.8B, up 27% YoY, Cites Mixed Economic Signals

Cisco posted quarterly sales of $10.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.9 billion or $0.33 per share, and non-GAAP net income of $2.5 billion or $0.43 per share. Net sales were up 27% year-over-year while net income rose 74% year over year. However, the figures were slightly below analyst expectations of $10.95 billion in sales and the company cited "mixed signals" for growth in the global economy.

"This was yet another very strong quarter with a number of record financial results for Cisco, closing the fiscal year in a tremendous position of strength--a compelling financial model, a well-tuned innovation engine and solid execution on our growth strategy," said John Chambers, chairman and CEO, Cisco. "Whether the global economy continues to show mixed signals or not--the strength of our financial model and profit generation serves us well."

Some highlights for the quarter:

  • Cisco said its supply chain has stabilized but that it continues to experience some component shortages.

  • Geographically, Emerging Market Orders were up 35% YoY, European orders were up in the mid-20% YoY, while AsiaPac, U.S. and Canadian orders were each up 20% YoY.

  • By product category, Advanced Technology revenue was up 27% YoY, Switching revenue was up 27% YoY, and Routing revenue was up 15% YoY. Significantly, revenue for the CRS routing system was up 20% YOY, ASR revenue was up 150% YoY, and Nexus data center revenue was up 325% YoY.

  • Cisco said data center virtualization is an especially hot segment. Video and collaboration are also hot.

  • During the quarter, Cisco hired about 2,000 employees of which 70% were in the U.S. In California, Cisco added about 600 employees in the quarter -- not counting acquisitions.

  • Cash and cash equivalents and investments were $39.9 billion at the end of fiscal 2010, compared with $35.0 billion at the end of fiscal 2009, and compared with $39.1 billion at the end of the third quarter of fiscal 2010.


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