Cisco returns to growth, network spending recovers

  @ibtimes on February 03 2010 4:24 PM

Cisco Systems Inc reported higher-than-expected revenue growth as more customers resumed upgrading their networks to handle increasing wireless and Internet traffic.

Cisco, which sells routers, switches, and other equipment that support wireless and Internet use, said on Wednesday that revenue for its fiscal second quarter ended January 23 rose 8 percent from a year earlier to $9.8 billion.

It was Cisco's first year-on-year revenue growth since the quarter ended October 2008. Analysts, on average, had expected revenue of $9.4 billion, according to Thomson Reuters I/B/E/S.

Profit rose to $1.9 billion, or 32 cents a share, from $1.5 billion, or 26 cents a share, in the year-ago quarter, it said. Earnings excluding items rose to 40 cents from 32 cents, compared with Wall Street's average forecast of 35 cents.

Cisco is one of the first major technology companies to report results that include much of January 2010. Its performance and outlook are often an early indicator for the rest of the technology sector, especially in enterprise spending.

(Reporting by Ritsuko Ando; Editing by Richard Chang)

Join the Discussion