Cisco Reports Upbeat EarningsBy Paula Musich | Print
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For its first quarter of fiscal 2005, Cisco's net income jumps 28.5 percent over the year-ago period, with revenue up 17 percent.Despite a continued tough spending environment for technology, Cisco Systems Inc. on Tuesday announced solid earnings and revenue growth for its recent fiscal quarter.
Cisco met Wall Street expectations in earning $1.4 billion for its first fiscal quarter of 2005 on $6 billion in revenue. The company's net income represented a 28.5 percent jump over the year-ago quarter. Revenue was up 17 percent.
The quarter represented the sixth consecutive sequential revenue growth for Cisco, and product revenue growth was up 18 percent year over year for the networking company.
During the quarter, Cisco closed on five acquisitions, including Actona Technologies Inc. for $90 million, Dynamicsoft Inc. for $69 million, Parc Technologies Ltd. for $14 million,
On the downside, Chambers said Cisco is seeing increased competition from Asian competitors. In addition, the company is in a transition period with both high-end customers for its new CRS 1 router and at the lower end with its Integrated Service Router line, he said.
For the second quarter of fiscal 2005, Cisco expects to see a revenue increase of between 1 to 3 percent over the first quarter. and a 12 to 14 percent increase year-over-year.
Cisco had identified four or five new advanced technology areas beyond the six it is working to develop, Chambers said. Although Cisco is beginning to invest in the next generation of new opportunities, he would not signal what those products are.
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