Cisco returns to growth after year in decline
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Networking equipment giant’s bounce back exceeds “even our own optimistic expectations”, includes 7% increase in enterprise division
Cisco yesterday reported an 8% revenue increase for its most recent financial quarter, up to $9.8 billion. The results, which end a four quarter run of revenue decline for the network equipment manufacturer, “well exceed[ed] even our own optimistic expectations,” according to CEO John Chambers.
Unlike software giant Microsoft, whose own recent revenue growth was attributed solely to consumer spending, Cisco’s second quarter performance was buoyed in part by a 7% revenue increase for its enterprise division.
Net income saw a sharper increase during the quarter, up 23.2% to $1.9 billion.
Chambers, who remained resolutely optimistic throughout the downturn, said he believes the company’s results “provide a clear indication that we are entering the second phase of the economic recovery”.
He singled out the service provider division, which saw revenue growth ‘in the low 20s’ in the most recent quarter compared to declines of more than 30% just two quarters ago, for particular praise. “This is one of the most robust positive turnarounds I've seen in my career,” said Chambers.
Of course, Cisco’s current year-on-year comparison are flattered by the fact that last year’s performance was especially dire. The $9.8 billion figure matches Cisco’s Q2 performance in 2008, meaning that the company has effectively reset after 24 months of trouble.
