Revenues and profits up at Cisco

10-05-2006

by Ciara O'Brien

Cisco has posted a rise in both revenues and profits in its third fiscal quarter, thanks in part to a number of acquisitions the firm has completed recently.

Net sales for the third quarter of the firm's fiscal 2006 reached USD7.3 billion, up from USD6.2 billion for the same period a year ago and USD6.6 billion in the second quarter of fiscal 2006.

The increase in sales can be partly attributed to the acquisition of Scientific-Atlanta, which was completed in February and added USD407 million to net sales for the three months.

Net income for the period reached USD1.4 billion or USD0.22 per share, including stock-based compensation expenses, a new addition to the figures. This is an increase from the 2005 third quarter figure of USD1.2 billion or USD0.18 per share.

Cisco has managed to boost its sales over the nine months of the fiscal year 2006, reaching USD20.5 billion, compared with USD18.2 billion for the first nine months of fiscal 2005. On a GAPP basis, net income for the nine months totalled USD4 billion or USD0.64 per share, an increase on the 2005 figure the USD3.4 billion or USD0.52 per share seen in 2005.

"Cisco's third quarter was marked by record revenues and strong results in orders and earnings per share," said John Chambers, president and CEO, Cisco Systems. "We saw a number of highlights this quarter, notably the growth of our US and emerging markets, the continued strength of the commercial market segment and advanced technologies, and the balanced performance across most of our key product categories."

Cisco has been busy on the acquisition front, with the completion of the Scientific-Atlanta deal and the purchase of SyPixx Networks.

The company is hoping to keep its performance strong going forward, within an ever-changing technology industry.

"The technology industry is being redefined as intelligence moves throughout the network," said Chambers. "Not only is the network becoming the primary driver of IT, but it is also driving all forms of communications. Cisco anticipated this market evolution years ago, and today, we are seeing the benefits from our investments."

Cisco employs some 50 people in Ireland and has its headquarters in Eastpoint Business Park, Dublin.