X

SAN FRANCISCO – Networking giant Cisco has reported a massive 44 percent rise in net profit for its fiscal second quarter, ended January 26, leading to speculation that the climate for technology spending by business is improving.Cisco reported net income of $3.1 billion, up from $2.2 billion a year earlier.

Revenue was up 5 percent at $12.1 billion. The group’s bottom line was boosted by $926 million as a result of a tax settlement and reinstatement of a R&D tax credit.

CEO John Chambers told analysts that he sensed “cautious optimism” among technology buyers. He later said that most of Cisco’s US customers are seeing “slow improvement” in spending.

However business remained weak in Europe, where sales and orders fell.Analysts noted that some of the new areas Cisco has been emphasising for future growth showed the best rises.

For instance, its business selling software and equipment for video grew 20 percent to $1.2 billion, thanks partly to its $5 billion acquisition of NDS Group. Cisco’s datacentre business grew 65 percent to $548 million.

But sales of collaboration technology, including Cisco’s high-end videoconferencing units, fell 11 percent to $945 million.- Two other Silicon Valley companies yesterday reported better days in their latest quarters.

Storage group NetApp reported profit up 43pc at $158 million; while graphic chipmaker Nvidia scored a rise in net profit from $116 million to $174 million, reflecting a move into the tablet arena.

Uniden Channelnews SoloX July 2024 728x90 1 Cisco Leaps 44% As Business Buys Tech
Arlo July Promo Digital 728x90 2 Cisco Leaps 44% As Business Buys Tech
728 x 90 Cisco Leaps 44% As Business Buys Tech
250527 SAV Channel news June25 Leaderboard 728x90 1 Cisco Leaps 44% As Business Buys Tech
ChannelNews AZ100 728x90 Cisco Leaps 44% As Business Buys Tech
728x90 Cisco Leaps 44% As Business Buys Tech
JBL TourPro3 728x90 Cisco Leaps 44% As Business Buys Tech
FA 979 HN MDF SG14 14gen 728x90 1 Cisco Leaps 44% As Business Buys Tech
GOTHAM 728px x 90px Cisco Leaps 44% As Business Buys Tech
Px7 S3 728x90 1 Cisco Leaps 44% As Business Buys Tech
Skullcandy 728x90 1 Cisco Leaps 44% As Business Buys Tech
Hisense KV BannerAd 728 90 Cisco Leaps 44% As Business Buys Tech
HAIER Series 600 FLW HPD Pairs 728x90 1 Cisco Leaps 44% As Business Buys Tech
BEL2535 BPB024 4SQ Banners 728x90 Cisco Leaps 44% As Business Buys Tech
BlueAnt 4SQM PumpAirUltra 728x90px Cisco Leaps 44% As Business Buys Tech
MaxRanger4K Leaderboard 728x90 Cisco Leaps 44% As Business Buys Tech
ELX DIG Crosscat Promo 728x90 Mar25 Cisco Leaps 44% As Business Buys Tech
Flick of a switch 728x90 1 Cisco Leaps 44% As Business Buys Tech
Marshall 728x90 1 Cisco Leaps 44% As Business Buys Tech
728x90 Cisco Leaps 44% As Business Buys Tech
Westan 728x90px Cisco Leaps 44% As Business Buys Tech
channel news banner 728x90 Hitachi Cisco Leaps 44% As Business Buys Tech
AU X8 Banner 728x90 Cisco Leaps 44% As Business Buys Tech
MOTO 36331576 Q3 Ad Banners 728x90 2 Cisco Leaps 44% As Business Buys Tech


YOU MAY ALSO LIKE