Robust switching sales power strong quarter for Cisco

Bengaluru: Network equipment maker Cisco Systems Inc reported stronger-than-expected quarterly revenue and profit as demand for switching equipment and routers helped make up for weak spending by the company’s traditional telecom customers. Cisco, which saw its shares rise 5.6 per cent in extended trading on Wednesday, has been trying to make a transition toward a new cycle of high-end switches and routers. “We executed very well in a tough environment, and I’d say our strategy is playing out like we expected,” Chief Financial Officer Kelly Kramer told Reuters. The switching business, which makes products that handle traffic at large internet data centers, brought in about 39 per cent of Cisco’s total hardware revenue in 2014, while the router business accounted for about 21.2 per cent.