Cisco Systems Inc. (CISCO) has reported that its second quarter profit rose 43 percent from last year, helped by higher sales and better cost control.
For the quarter ending Jan. 28, Cisco posted a profit of $2.18 billion, or 40 cents a share, up from $1.52 billion, or 27 cents a share, a year earlier. We delivered strong performance this quarter with record revenue and earnings per share, said John Chambers, Cisco chairman and CEO. We are executing well on our three-year plan to drive earnings faster than revenue. Our operational focus continues to yield positive results, we hit our billion dollar expense reduction a quarter early, he added.
Net sales for the second quarter rose 11 percent to $11.53 billion from $10.41 billion in the same quarter last year. Second quarter net sales grew 2.4 percent sequentially. Cisco had undergone restructuring last year for simplifying its business and for responding to competition in key product areas including routing and switching gear that shuttle data between computers.
Shares rose 3.3 percent to $21.10 in after hours trading as results beat the company's expectations.
Considering its global scale and diverse client base, Cisco is seen as the bellwether in the sector and is forecasting 5 to 7 percent growth in fiscal third-quarter revenue. The company has said its offerings are benefiting from tech trends such as cloud-computing and the growing importance of mobile devices.