Cisco sees ‘dramatic’ sales improvement in 2Q as economy recovers
By APWednesday, February 3, 2010
Cisco sees ‘dramatic’ sales improvement in 2Q
NEW YORK — Cisco blew past its own forecast for the latest quarter, reporting its first sales increase in a year as it leaves the recession behind.
CEO John Chambers said Wednesday that improvement was dramatic “across the board” and provides “a clear indication that we are entering the second phase of the economic recovery.”
Cisco Systems Inc. said it earned $1.9 billion, or 32 cents per share. That’s up 23 percent from $1.5 billion, or 26 cents per share, a year ago.
Excluding one-time charges, the world’s biggest maker of computer networking equipment earned 40 cents per share. Analysts expected 35 cents per share.
Revenue rose 8 percent to $9.8 billion, topping analysts’ forecasts of $9.4 billion for the fiscal second quarter that ended Jan. 23.
Shares of Cisco, which is based in San Jose, Calif., rose 3 cents to $23.10 in extended trading. Before the release of results, shares closed up 5 cents at $23.07.
