Cisco acknowledges profits droop
Cisco Systems has reported fourth quarter profits down by nearly half, and revenue down by 18 per cent.
The San Jose-based internetworking giant announced net sales of $8.5bn, with net income down 46 per cent to $1.1bn.
In this flat economic environment, the sector is seeing profits go down across the board, however Cisco presented its results positively, with its CEO Chambers highlighting that economic improvements were showing up as rising sales, quarter-on-quarter.
“We saw a number of positive signs this quarter in the economy, and in our business, especially comparing our sequential quarter-over-quarter order trends,” Chambers commented. “If we continue to see these positive order trends for the next one to two quarters, there is a good chance we will look back and see that our tipping point occurred in Q4.”
Chambers also noted that Cisco's goal is “transformational, to become a next-generation company and continue to enhance our market position by executing on our growth opportunities.”
He added: “We see the network truly becoming the platform for innovation and new business models which are enabled by collaboration technologies.”