Cisco third quarter net income rises 14%
Increase in all four divisions is first for company in a year and a half
New York: Cisco’s net income jumped 14 per cent in the latest quarter as revenue at all four of its divisions rose for the first time in a year and a half.
Cisco earned $2.5 billion (Dh9.2 billion), or 46 cents per share, in its fiscal third quarter, which ended April 27. That’s up from $2.2 billion, or 40 cents per share, a year ago. Excluding one-time items Cisco earned 51 cents per share in the latest quarter, and its revenue increased 5 per cent, to $12.2 billion from $11.6 billion.
Analysts surveyed by FactSet expected 49 cents per share and $12.2 billion in revenue.
The networking equipment company’s net income and revenue beat Wall Street’s expectations and its stock gained $1.21, or 5.7 per cent, to $22.42 in aftermarket trading after the release of the numbers. The stock fell 6 cents to $21.21 during Wednesday’s regular trading session.
“We are starting to see some good signs in the US and other parts of the world which are encouraging,” Chairman and CEO John Chambers said in a press release.
Revenue in the US improved and sales from emerging markets grew more than 10 per cent.
As one of the largest technology companies in the world, Cisco’s performance is widely regarded as a way to gauge the relative health of the technology industry. The San Jose, California, company cuts a broad swath, selling its routers, switches, software and services to corporate customers and government agencies around the world.
