Cisco Reports 63% Profit During 'Strongest Quarter'
Hailing the "strongest quarter" in company history, Cisco reported financial results for the third quarter of FY 2010 that exceeded its own expectations -- including a 63 percent increase in income for the three-month period ending May 1, 2010.
The San Jose, Calif., networking giant's highlights for the quarter included net sales of $10.4 billion, net income of $2.2 billion or $.37 per share, and non-GAAP net income of $2.5 billion or $0.42 per share.
"We witnessed a return to strong balanced growth across geographies, products and customer segments that we haven't seen since before the global economic challenges began," John Chambers, chairman and CEO of Cisco, told investors Wednesday. "We emerge from this downturn gaining market share, a larger share of the total wallet spend of our customers, dramatically improved customer relations as a trusted technology and business partner, and having next-generation products in almost every product category. It is clear that our game plan for how to handle economic downturns is hitting on all cylinders."
Though Cisco noted that third quarter of fiscal 2010 had 14 weeks compared with 13 weeks in the third quarter of fiscal 2009, net sales for the first nine months of fiscal 2010 still hit a high of $29.2 billion, compared with $27.6 billion for the first nine months of fiscal 2009.
Net income for the first nine months of fiscal 2010, on a GAAP basis, was $5.8 billion or $0.99 per share, compared with $5.1 billion or $0.86 per share for the first nine months of fiscal 2009. Non-GAAP net income for the first nine months of fiscal 2010 was $6.9 billion or $1.18 per share, compared with $6.1 billion or $1.04 per share for the first nine months of fiscal 2009.
Big highlights of the three months ending May 1 included Cisco included the acquisition of TANDBERG, which will strengthen the Cisco TelePresence brand. Another biggie, Cisco introduced the Cisco CRS-3 Carrier Routing System, designed to serve as the foundation for the next-generation Internet and to transform the broadband and entertainment industries.
But even though Cisco's hit what some would call the pinnacle of success, the company remained cautiously optimistic.
"Our challenge now is to repeat this now, in volume, for out top customers," Chambers said. "While we believe the recovery is accelerating, no one knows how log it will be ... but we will continue to position ourselves fro strong economic growth."
Marisa Torrieri is a unified communications Web editor, covering IP hardware and mobility, including IP phones, smartphones, fixed-mobile convergence and satellite technology. She also compiles and regularly contributes to unified communications's gadgets and satellite e-Newsletters. To read more of Marisa's articles, please visit her columnist page.
Edited by Marisa Torrieri