Cisco reports Q3 revenue, earnings gains

Cisco reported third-quarter revenue and profit increases from the year-earlier period.

Cisco Systems cited gains in its service-provider equipment business as it reported a revenue rise of more than 10 per cent for its fiscal third quarter compared to the same period last year.

The company reported net sales of $US6.2 billion to April 30, compared with $US5.6 billion a year earlier. The sales came in a typically difficult season and show that carriers in particular are embracing IP networks, according to president and CEO, John Chambers.

Net income also grew, reaching $US1.4 billion compared with $US1.2 billion a year earlier.

Cisco's biggest gains came in service provider equipment, where product bookings grew about 25 per cent from a year earlier and 20 per cent from the second quarter, Chambers said. He attributed this to architectural carrier decisions to build out IP infrastructures. Leading the service provider growth was the US, where bookings were up about 40 per cent from last year's third quarter and 20 per cent from the previous quarter.

In Europe and the US, service provider sales were strongest while results in the commercial sector were solid and enterprise sales lagged, Chambers said. Service provider bookings grew year-over-year in every geographic market except Japan.

US sales contributed almost half of revenue; Europe, the Middle East and Africa brought in 32 per cent; and Asia-Pacific accounted for 10 per cent. Japan brought in 6 per cent and markets in the Americas outside the US also contributed 6 per cent.

Another bright spot in the quarter was VoIP equipment, Chambers said.

Enterprise IP telephony bookings grew 35 per cent from a year earlier and 15 per cent from the previous quarter.

For the fourth quarter, Cisco expects revenue to come in between $US6.45 billion and $US6.6 billion, up between 9 per cent and 11 per cent from a year earlier.

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