Improvement was dramatic “across the board” and provides “a clear indication that we are entering the second phase of the economic recovery,” CEO John Chambers said in a statement Wednesday.<\/p>\n
Because Cisco is the world’s largest maker of computer networking equipment, its sales are seen as a bellwether of technology spending by large corporations, government agencies and telecommunications service providers around the world.<\/p>\n
Earnings were $1.9 billion, or 32 cents per share, up 23 percent from $1.5 billion, or 26 cents per share, a year ago. Excluding one-time charges, Cisco earned 40 cents per share. Analysts expected 35 cents per share.<\/p>\n
Revenue grew 8 percent to $9.8 billion. For the fiscal second quarter, which ended Jan. 23, the company had forecast a 1 percent to 4 percent sales increase, the first such year-over-year sales increase in a year. That’s in contrast with two quarters earlier, its worst of the recent recession, when sales were down 18 percent.<\/p>\n
Shares of Cisco, which is based in San Jose, Calif., rose 35 cents to $23.42 in extended trading. Before the release of results, shares closed up 5 cents at $23.07.<\/p>\n
Despite the sales drop, Cisco’s high profit margin and huge cash hoard let it power through the recession in relative serenity, though it did lay off about 2,000 employees. It even made a string of multi-billion-dollar acquisitions.<\/p>\n
“We are confident that our aggressive strategy of investing in the business during the downturn … are driving our momentum and growth in the market,” Chamber said.<\/p>\n