Cisco Systems, the world leader in networking equipment for the
internet, yesterday reported its fourth quarter results, showing
profits up 69%, ahead of expectations.
Net sales for the fourth quarter of the financial year were
$5.72 billion, compared with $3.56 billion for the same period last
year, an increase of 61%. The company benefited from strong sales
to ISPs, cable and telephone companies.
President and CEO John Chambers said: "We were very pleased with
the balance of our business across all key geographies, products,
and lines of business."
He added:
"We see no indications in the marketplace
that the radical internet business transformation in practices like
customer service, supply-chain management, employee training,
empowerment, and e-commerce that is taking place around the world
today is slowing - in fact, we believe it is accelerating
globally.”
Earlier this year, Cisco’s market capitalisation made it the
world’s largest company, albeit briefly. It is now the second
largest, at about $460 billion, behind General Electric, but ahead
of Intel and Microsoft. Analysts have said that Cisco helps to
define growth and valuation parameters for the industry sector. The
results for Cisco are expected to have a favourable knock-on effect
for high tech European stocks.
